L’Oreal: Global Brand, Local Knowledge

2041 Words Nov 2nd, 2013 9 Pages
L’Oreal: Global Brand, Local Knowledge
1. Outline the various conflicting demands on L’Oreal in the international context and their relative importance. What tradeoffs do you see among them?
The conflicting demands are:
Global Integration
Local responsiveness
Leveraging knowledge (local to Global)
Global Integration:
L’Oreal is one of the world 's most progressive companies and it is being honored for creating a corporate culture that embraces and drives diversity throughout the company.
L’Oreal’s strength comes from the diversity of its teams, to be a global company, it’s needed first have to be global from within. So people from different cultures and origins are a real asset for the company. L’Oreal experience is that
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3. Evaluate the basis for L’Oreal’s competitive advantage considering the strategic capabilities key to their success?
The four main key success factors of L 'Oreal are:
1. Research and Development
2. Understanding customer needs worldwide
3. Investment in Advertising
4. Use Distribution Channels

Research and Development: L 'Oreal competitive advantage in this field is because they invest heavily in innovation and creating products to suit the times and the needs of all current and future markets creating products that meet the needs and create new consumer needs. This allowed them to more clearly understand the needs of customers and satisfy them through their effective products.

Understanding customer needs around the world: it is a competitive advantage because understanding the needs of the population L 'Oreal can make research and development that allows them to create products to get to meet all needs of all potential customers in all the countries around de world.
L 'Oreal capacity to spread throughout the world by understanding the needs of different regions and market has given a privileged status in the market for cosmetic, hair care and skin.

Investment in Advertising: is a competitive advantage because this investment covers all channels and positions in all

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