SWOT Analysis

The Overall evaluation of L’Oreal’s Lip Lightening Balm strengths,

weakness, opportunities, and threats are as follows:

1. Strengths:

L`Oreal has got widest range of products in the Cosmetic industry.

The tag line “Because you’re worth it” is taken care off as company
keeps continuous check on the operations through research and
innovation in the interest of beauty which assures that the L’Oreal
Cosmetics offers the best to their consumers. L’Oréal is also working
hard in order to provide safety and health working conditions.

To further add to the enumerated strengths, L’Oreal’s advertising

strategy also plays a major part to its growth. Through adapting to
the culture of their target market as the main tool of their
advertisement, the Company brought L’Oreal products within reach
of other women and men from different parts of the world

2. Weakness:

Perhaps one of the weaknesses of the company is that Transition to

the produce is a long procedure due to organizational structures.
There are loads of sub-branches and for the final decision; they
need to approval of the decision in order to go into the manufacture.
Another weakness that L’Oreal faces is their profit. The profit margin
of L’Oreal is comparably low than that of the other smaller rivals.
While L’Oreal projects certain rise in digits as their profit, the result
does not usually meet the expectations. Perhaps, this is also due to
the high-end advertising and marketing as well as the width of the
Company. Finally, the coordination and the control of the activities
and image in the worldwide market are also viewed as a weakness
in the part of L’Oreal.

3. Opportunities:

The L’Oreal Company concentrates on cosmetic products that

enhance women of all ages and now has also entered the market of
cosmetics for men. The growing demand for beauty products gives
L’Oreal the opportunity to focus in their field of specialization, like
lipsticks and lip balms. Being the leading cosmetic brand gives them
the edge for their well-known image. Opportunity also emanates
from their growing market that ranges from the affluent, the aging
and also the masses of the developed countries. Another
 opportunity that L’Oreal must take advantage of is their greater
market share because of the numerous patents registered by the
Company. This enables them to have the top of the line products
only to their name and therefore would lead costumers only to them
for they could not find any of the said cosmetics in other brands.

4. Threats:

A threat to this L’Oreal product is also the growing competition

within the field of cosmetic brands. Due to the ongoing addition to
the field of cosmetics, there is still the danger that other brands
could surpass the profit of product. And also other cosmetic brands
can come with the similar product with lower cost which might
affect the profit and popularity of both product and brand.
Another threat is that organic products are very popular in these
days that this has been a major blow to the cosmetic sector. So the
company need to use the natural ingredients so that other brands
are not threat to them.
While the L’Oreal Group may be producing the best of its line,
people may find that their products are not of their basic needs and
would skip buying L’Oreal products. However, with the growth of the
market, the damage could be far from taking place.
 PEST Analysis

Political Factors
Indian cosmetic industries is least affected when compare to other
developed economy and the cosmetics market has been growing at the
rate of 15-20% for the last few years,which attributed to our policy
frame work with respect to capital and liquidity. L’Oréal has built strong
links with trade based on mutuality in support of Indian government.

Economical
Indian economy registered a growth of more than 9 % for last three
years and it maintained robust growth rate as compare to other
countries which are developed and developing, so Indian cosmetic
industry is directly related growth of economy, which is highly support
cosmetic industry. The sector has mainly been driven by improving
purchasing power and rising fashion consciousness of the Indian
population. Moreover, the industry players have been spending readily
on the promotional activities to increase consumer awareness.

Social
L’Oréal has loyalty factor as compared to counter part in other
countries. They are strong in organizing social and promotion events
like fashion shows, which build huge reputation among the people.

Technology
Technology advancement changes the face of traditional Indian
cosmetic market. It is giving faster and secured service, strong
consumer understanding and technology of company has been
delivered world class product. Company also introducing new
innovating technology due to advancement in technology, Hence
technologies continue to evolve and it will meet consumer expectations
and habitats.