L'Oreal in the Competitive Industry of Cosmetics

SWOT Analysis: L’Oréal Group
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I. Executive Summary
The report presents a SWOT analysis for L’Oréal Group. The analysis of industry trends and the company’s business model indicates that L’Oréal is successful to achieve high market share in the competitive industry of cosmetics.
Group’s revenue increased by 7.1% to €26.9 billion and earnings per share (EPS) has also improved on a continuous basis. The EPS increased from €6.46 in 2016 to €7.08 in 2018. Return of equity (ROE) of L’Oréal is 14% and it is high as compared to the industry average of 12%. Group is less dependent on debt to generate returns and it a good indication for the shareholders.
The SWOT analysis presented in the report has also helped to identify unique facts and figures. Company’s strengths are diversified product portfolio, high-quality products, a large investment in research and development, and continuous expansion in new markets. The greatest weakness is the high dependency on an increasing number of employees. The company requires technological methods and solutions to decrease dependency on human resources.
The opportunity exists for L’Oréal in new emerging markets through the development of new products as per the expectations of local customers. The biggest threat to the company is related to continuous change in trends of the cosmetic industry and it can be overcome through the development and introduction of new innovative products according to trends generated. Hence, SWOT analysis indicates that L’Oréal is successful to maintain competitive advantage through maximum utilization of its strengths.
Table of Content
TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc26887190 \h 4II. Industry Trends PAGEREF _Toc26887191 \h 4III. L’Oreal strategy and Business Model PAGEREF _Toc26887192 \h 5A. L’Oréal Main Mission Statement PAGEREF _Toc26887193 \h 5B. Prioritized Investment Vs Targeted Investment PAGEREF _Toc26887194 \h 6C. Strategic Outcomes PAGEREF _Toc26887195 \h 6D. Financial and Non-Financial Indicators PAGEREF _Toc26887196 \h 6III.1 Competitors PAGEREF _Toc26887197 \h 7III.2 Board Information PAGEREF _Toc26887198 \h 7III.3 Management Role PAGEREF _Toc26887199 \h 7IV. SWOT Analysis PAGEREF _Toc26887200 \h 8A. Strengths PAGEREF _Toc26887201 \h 8B. Weaknesses PAGEREF _Toc26887202 \h 9C. Opportunities PAGEREF _Toc26887203 \h 10D. Threats PAGEREF _Toc26887204 \h 11V. SWOT Financial Efficiencies PAGEREF _Toc26887205 \h 12A. Financial Performance PAGEREF _Toc26887206 \h 12B. Operating Performance PAGEREF _Toc26887207 \h 12C. Return on Equity (ROE) PAGEREF _Toc26887208 \h 13D. Liquidity PAGEREF _Toc26887209 \h 13VI. Cultural and Human Capital PAGEREF _Toc26887210 \h 14A. Future Market Goals PAGEREF _Toc26887211 \h 14B. Culture Awareness PAGEREF _Toc26887212 \h 14C. Human Resource Practice PAGEREF _Toc26887213 \h 14V1. Conclusion PAGEREF _Toc26887214 \h 15References PAGEREF _Toc26887215 \h 16Appendix: 2X2 SWOT Matrix PAGEREF _Toc26887216 \h 18
SWOT Analysis L’Oreal Group
Introduction
L’Oreal is a market leader in the beauty and cosmetics world. The e...