L'Oreal Company Analysis

2172 Words May 7th, 2008 9 Pages
One of the biggest names in the make-up industry is L’Oreal. L’Oreal runs a massive worldwide operation employing nearly 62,000 men and women of various races, backgrounds and religions across nearly 60 countries. Part of the reason for the corporation’s success has been its sensitivity not only to its consumers but also to each and every one of its employees. The corporation has made sure that all their employees have opportunities to develop themselves both personally and professionally. This commitment by the corporation to take care of their own employees has resulted in L’Oreal being rated by the European business school students as The Employer of Choice for the year 2006 (L’Oreal Corporation, n.d.). With over a century of …show more content…
Furthermore, there are also other notable weaknesses applicable to L’Oreal. Another weakness point is the existence of false claims in advertising. In May of 2007, L’Oreal was ordered by the Therapeutic Goods Administration of Australia to retract their claims on the wrinkle removing capabilities of their products (Anti Aging Wrinkle Creams are a Rip Off).

Opportunities One of the areas of opportunity for L’Oreal is its increased supply of ecologically and environmentally friendly ingredients. L’Oreal can increase their supply of ecologically and environmentally friendly ingredients by furthering their Sustainability Assessment Framework and working even more closely with current and new suppliers to address predetermined concerns (L’Oreal Corporation, n.d.). Another point of opportunity for the company is to increase its sales of its Active Cosmetics product line. For 2006 alone, The Active Cosmetics product line of L’Oreal made up 7.5% in total revenue for the corporation. L’Oreal has recognized the growth in demand for active cosmetics, that is why the corporation has been acquiring companies in the active cosmetics line. By increasing their marketing and product line up for active cosmetics, L’Oreal can reach a wider range of consumers (L’Oreal Corporation, n.d.). A third area of opportunity for L’Oreal is that it could work on purchasing of more successful cosmetics companies.
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