1

Analysis of the internal environment

Commercial capacity. For L'Oreal, building a strong image among the public is a
significant global goal, which can only be achieved through an appropriate
communication strategy
Productive capacity
Financial capacity

In the case of the “L’Oreal” company, the technology consists in the technology of
making the products, in order to satisfy the needs and requirements of the consumers.
L'Oreal has 40 factories in the world

2
Identifying the market strategy adopted by the analyzed company

- Presence on all distribution channels and in all segments;

- World leader in cosmetics;
- High quality of products;
- Strong marketing communications;
- Strong brand portfolio;
- Staff training;
- Continuous R & D;
- Targeted acquisitions.

- Too many sub divisions;

- Lower profit margins (higher investments in R&D);
- Difficulty managing employees;
- Human capital expenditure is huge.

- Growth of new markets in development;

- Targeted acquisitions abroad;
- Development of Internet sales;
- Wide target group: age, sex, various ethnic groups;
- High demand for organic products.

Strong competition;
- Change in consumer preference;
- Economic crisis – low cash flow;
- Increasingly strict legal regulations in different countries;
- The risk of imitation by the competitor;
- Distributor brands can be competitively priced.

3
L’Oréal strategy
L’Oréal has developed a unique strategy: Universalization. It is an approach to
globalization that captures, understands and respects differences. The differences in
desires, needs and traditions. To offer tailor-made beauty and meet the needs of users
around the world. L’Oréal is driven by this plural worldview

It means creating and producing cosmetics locally, so that formulas are perfectly suited
to their needs. To achieve this goal, the company has developed a global network in
Research & Innovation, as well as a marketing hub for each of its strategic markets: the
United States, Japan, Brazil, China, India and South Africa

4
The need to change
The workplace is constantly changing and consumer expectations continue to rise. It is
critical that companies equip themselves with innovative and efficient digital tools.
Regarding the change, the first step is the implementation of new digital tool that will
reduce working time. For this stage, in the finance department, the tool MS Excel will be
replaced with Spotfire.