L'Oréal SWOT Analysis, Competitors & USP

SWOT analysis of L'Oréal analyses the brand by its strengths, weaknesses, opportunities & threats. In L'Oréal SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like L'Oréal to benchmark its business & performance as compared to the competitors. L'Oréal is one of the leading brands in the FMCG sector.

The article below lists the L'Oréal SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the L'Oréal SWOT Analysis:

SWOT Analysis of L'Oréal

For L'Oréal, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

L'Oréal Strengths

The strengths of L'Oréal looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of L'Oréal :

1. Continuing research and innovation in the interest of beauty which assures that the L’Oreal Cosmetics offers the best to their consumers.
2. L'Oréal is a leader in the growing cosmetics industry despite the competition in the market.
3. High-end advertising which adapts to the culture of target audience
4. L'Oréal has over 80,000 employees globally
5. Apart from hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States
6. L’Oréal has operations in over 130 countries and over 4o manufacturing plants

L'Oréal Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the L'Oréal SWOT Analysis:

1. Decentralized organizational structure. Due to the many subdivisions of the Company, there is also the difficulty in the control of L’Oreal
2. Stiff competition from other leading cosmetic established brands

L'Oréal Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in L'Oréal SWOT Analysis:

1. L'Oréal can tap the growing market that ranges from the affluent, the aging and also the masses of the developed countries
2. Greater market share because of the numerous patents registered by the Company.

L'Oréal Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of L'Oréal are as mentioned:

1. Growing competition within the field of cosmetic brands
2. Economic downturn that is quite evident in other countries
3. 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.

L'Oréal Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 11 competitors of L'Oréal:

1. Revlon

2. Christian Dior

3. Lakme

4. Chanel

5. Maybelline

6. Avon

7. Estee Lauder

8. Lancome

9. Procter and Gamble

10. Unilever

11. Olay

Hence this concludes the L'Oréal SWOT analysis.

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About L'Oréal

L'Oréal Overview
Parent Company	L'Oréal
Category	Personal Care brands- Cosmetics
Sector	FMCG
Tagline/ Slogan	Because you’re worth it
USP	L'Oréal best caters to the beauty demands of women of different cultures through constant research and innovation
L'Oréal STP
Segmentation	Women of upper middle class
Target Market	Affluent young & elderly women looking for beauty products
Positioning	L'Oréal offers high end brand in beauty & cosmetic products

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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