Estee Lauder Case Analysis by Fred David 12th Edition

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Case Background Estée Lauder Companies was a technologically advanced, innovative company which gained a worldwide reputation for elegance, luxury and superior quality. Estée Lauder Companies, Inc. which founded in 1946 is a U.S manufacturer and marketer of skin care, cosmetics, hair-care and fragrance products. The company’s headquarters are in Manhattan, New York City. The company launched with four products under its flagship brand but over the decades, the business has grown alongside its reputation for elegance and quality. One of the platforms that Estée Lauder discovered was in 1968, with the launch of Clinique Laboratories Inc. and hence become the first company with a line of products that were allergy tested and 100…show more content…
Internal Environment Strengths • Estée Launder has 26 brands selling in over 130 countries. • Each brand has a single global image which is promoted with consistent logos, packaging, and advertising designed to differentiate it from other brands. • Estée Lauder was awarded/included in Ten Outstanding Women in Business in the U.S by business and financial editors in 1967 which contributed largely towards brand-building of the company. • Global licenses and globalized operations. • Defined and has wide channels of distribution. • Manufacturing operations match ISO 14001 standards. • Early and effective use of internet and technology in 1998 added strength to their sales • Excellent promotional strategies like: • Discounts • Gifts and free samples with purchases • Celebrity endorsements • Advertisements that differentiate them from others. • Innovation: • First dermatologist-guided, allergy tested, fragrance-free cosmetics brand • First major prestige cosmetic firm to offer shopping via internet • First to introduce consistent brand imagery around the world • Global expansion as a result of strengthening of the U.S dollar. Weaknesses • Identical organizational structure. • Lower sales in fragrance product category • Most of the power and authority in the company is vested in
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