Professional Documents
Culture Documents
Introduction
A. Internal Analysis
1. Strengths
The ongoing success of the LOreal Group is without if not for the
ingenuity of the concept of their vision as a team. LOreal Chairman and
CEO Lindsay Owen-Jones considers passion as the key to the well-
renowned accomplishment of the said Company. The primary strength of
the Company is the continuing research and innovation in the interest of
beauty which assures that the LOreal Cosmetics offers the best to their
consumers. Their dedication to their continuous research makes them the
leader in the growing cosmetics industry despite the competition in the
market.
2. Weaknesses
1. Opportunities
The LOreal Company concentrates on cosmetic products that
enhance women of all ages. The growing demand for beauty products
gives LOreal the opportunity to focus in their field of specialization,
particularly on hair styling and color, skincare, cosmetics and perfumeries.
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 LOreal 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.
2. Threats
A threat to the LOreal group 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 LOreal. Another threat to the Company is the economic downturn
that is quite evident in other countries. Such could thus hurt the possibility
of higher profit for the company. Most products of LOreal are within the
reach of the citizens of developed countries, but LOreal may have
problems reaching out even to the average people from the
underdeveloped countries. Also a threat to the LOreal Group is the
spending habits of consumer and the economic crunch that most countries
are experiencing as of present. While the LOreal 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 LOreal products. However, with the growth of
the market, the damage could be far from taking place.
Ethical Issues
There are two ethical issues that will be the particular concern of this
analysis. The first to be addressed is the advertisements and promotion of
the LOreal Group using the image of the traditionally beautiful women. The
issue here is whether or not the advertisements of LOreal groups, while it
does attract many consumers, affect the purchasers view of beauty and
what he/she must do to achieve this level of beauty. Blair (1994) stated that
in the context of advertising, the female viewer is continually forced to look
at herself through traditionally male eyes, to fit her personal history and her
body into that money-making construct known as "woman." An analysis of
advertisements for and about women shows that femininity continues to be
one of consumer capitalism's most marketable commodities, selling as well
as cars, cigarettes, and alcohol, though certainly the image of the female
body is used to sell these products as well. The more beautiful the woman
is, the more people will respond to the ad. There is greater possibility that a
female consumer will respond to an ad with an attractive model because,
as mentioned earlier, the belief that at some point she will achieve the
same glowing skin or flawless complexion just like the celebrity or model in
the ad. The ad then serves as an image of the positive response to her
beauty, most especially by the opposite sex. Through achieving a beautiful
physical appearance, just like the advertisement, women will gain more
love, respect and power. This poses as a possible problem for the LOreal
Group. While it is inevitable that the Company use the concept of the
beautiful women, they should also start thinking about being more ethically
responsible for what they are coming up with. Perhaps, this is shown in one
of their ads where they depicted women of all age to pose for their
products. From this view, LOreal could be said to be making effort in
defying the concept of beauty as young, instead conceptualizing beauty as
ageless. It would thus be helpful to quote Moore (2004) as a reminder to
advertisers: "Advertising is not just about the things we buy. Its how we feel
about things, including ourselves. Thats what makes it interesting." Also,
LOreal makes an effort to avoid common view on women by awarding
women in the field of science. Five women were awarded by LOreal-
UNESCO for Women in Science Awards whose distinguished careers in
the material sciences have contributed greatly to advancing our
understanding of the world and how it works. LOreals shot on giving
women more place in the field dominated by men is clearly an effort on
their part to change the image of women as more than objects of beauty.
Another ethical issue that may be raised is on animal testing. Despite high
regard for quality, LOreal is the fifth cosmetics company that has decided
to halt animal experimentation. It ceased this practice in October 1993
(Emert, 1994). L'Oreal abandoned animal testing after four years of letter-
writing, demonstrations and advertisements aimed at the company. People
for Ethical Treatment of Animals (PETA) is locked in quiet negotiations with
a number of companies that may be rethinking their testing policies since
Paris-based cosmetics giant L'Oreal agreed to an animal test ban in
October. This shows the influence of LOreal on the ethical decision of other
companies. Also, the LOreal Groups decision would uplift their image and
even attract more consumers. Perhaps, LOreal has indeed been a
successful company. There are a few fall backs that have been mentioned
such as the low profit margins, a decentralized organizational structure and
even the growing competition in the cosmetic market. LOreal must then
place more effort in being able to reach out to their consumers. The
Company has shown endurance and perhaps it would be risky but
rewarding to try a more diverse approach in their advertising, showing real
women in their promotions. Also, it would be helpful to widen their
advocacies for the minorities and oppressed group of people.
Reference
Blair, Kristine (1994) Selling the Self: Women and the Feminine Seduction
of Advertising. Women and Language, 17 (1), 20+.
Emert, Carol (1994) PETA gets second wind in its battle with beauty
(People for The Ethical Treatment of Animals) (Power Surge
Supplement) WWD, 4 March 1994.
Sang, James (2003) European Shares Close Mostly Lower After Weak
U.S. Data. Available online (http://www.thomsonfinancialcarson.com.)
Accessed on (01/04/2005)