Strengths Market position Research facilities Financial situation Worthy brands Loyal customers Innovative image

Weaknesses High price level Small male target group Products are inadaptable for children Problems with achieving advertising promises

Opportunities Expand in new niches moving to middle or cheap price segments Cheap brand with the well named name L'Oral Creating joint ventures with other companies Producing healthy biofood

Threats Losing market leading position New entrance Missing and failing intrends and needs Decrease of sale by bad reputation crisis, of the segment and in general

Takeover of competitors

Confrontation matrix Strengths S1 - Market position O1 Expand in new niches S5 - Costumer loyalty O2 - moving to middle or cheap price segments_____________ S6 - innovative image O5 Bio food S3 - financially healthy O5 takeover of competitors Weaknesses W1 high price level O2 - moving to middle or higher price segments_____________ W2 small male target group O1 expand in new niches W3 - Products are inadaptable for children O1 expand in new niches W4 Problem achieving advertising promises O4 moving to middle or cheap price segments W1 Expand in marker niches T3 missing trends W2 small male target group T1 losing market position W3 products are inadaptable for children T2 new entrance of competitors_______________ W4 - Problem achieving advertising promises T4 - getting bad reputation

Opportunities

Threats

S1 - Market position T1 Losing market position S2 Research facilities T3 Missing trends S3 worthy brand T4 getting bad reputation S4 loyal consumers T2 New entrance of competitors

Conclusion SWOT

There are a lot of strengths and weaknesses of L'Oral, what should clarify the importance of awareness in the market and improving of the company image, product innovations and possible new market niches to reach new costumers. The SWOT illustrates the danger of external and uncontrollable forces. Beauty products are not really necessary. If there rise a huge crisis in the market segment or a general financial crisis, people will only buy important products.It is extremely important to force the strengths, the market position and the brand reputation to avoid big entrances of competitors. Furthermore, L'Oral took over some companies worldwide, built joint ventures and worked together with other enterprises like Nestle to damp rivals.