CEO Philip Clough and senior management of L’Oreal has invited your team to take a look at the
mission and vision of the company. It has grown tremendously in the last 50 years and has positioned
themselves as the #‘I cosmetic producer in the world. They also want you to evaluate the future strategy of
growth for L’Oreal. Please prepare a report indicating what they did right and what may be the challenges
faced by L’Oreal in the future. Also. make a set of recommendations as to what course of action should L’Oreal
take.
Lead Questions‘l. What factors limited the ability of L’Oreal to expand into global markets? What action did
the company to make this expansion possible? How did that affect the structure of the company?
2. When did L’Oreal enter the US markets? What were the key challenges faced by them? Why did L’Oreal
reorganize its structure in the 19605? How did it help to meet the consumer needs and expand in Europe?
What role did European markets play in its sales and profitability? How and why did L’Oreal go for the
premium market in the US?
3. Why did L’Oreal acquire Maybelline? What were the key issues faced by Maybelline? What did L’Oreal do to
turnaround Maybelline? What did it do to make Maybelline a market leader? What qualities did Maybelline
products embody? How did it fit in with the L’Oreal brands? What success did Maybelline brands bring to the
L’Oreal group? How did L’Oreal turn it into a global brand?
4. What is the global brand strategy of L’Oreal? What role does the US market play in it? What are key
challenges faced by L’Oreal in dealing with global brands?
5. How did L’Oreal reorganize its structure to support its global strategy?
6. What is the competitive strategy of L’Orea l? Who are its major competitions in various product categories?
How does L’Oreal compete against them? How does L’Oreal positions itself as “different” from other cosmetics
manufacturers? Is it a tenable position?
7. What was the basic growth strategy of L’Oreal in its bid to become a major global market leader? How did
it shift from a multi-national strategy to a global strategy? What role have acquisitions of local brands played
in its growth strategy? How does it integrate the local brands into the global strategy? How did the
globalization process change the culture of L’Oreal?