LĂ²Ăââ˘Oreal
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Founded in 1909 , LĂ²Ăââ˘oreal had become the world leader in the cosmetics market by 2003. The company believed in the strategy of innovation and diversification. Though the cosmetic market on the whole is in declined stage LĂ²Ăââ˘oreal products has been becoming popular for their uniqueness catering to the needs of customers. It entered 130 countries 290 subsidiaries and around a hundred agents. The group had marketed over 500 brands consisting 2000 products. It provided products for all sectors of beauty business. It has four product categories; consumer, luxury, professional, active. Their expansion strategy is more from acquisitions. They have one R&D center in france and one in U.S. have production plant one in France and one in India. Presently they are on upper hand but the global competitors such as Estee Lauder, Procter & Gamble and Unilever are not far behind. LĂ²Ăââ˘oreal constantly produces one or two products annually to keep up with the demand and stay ahead of competition. Since the market is highly globalized having R&D center in just two locations would put LĂ²Ăââ˘oreal in to weaker performance in future, although they are good at envisioning the demand. Overcoming the competition, addressing to male customers and gaining market share on ethnic beauty products are minor strategic issues they are facing if not paid attention would lost overall market share to their competitors. Having more R&D centers in different regions especially in one of the Asian countries would give a cost advantage as well as gain solid insight and knowledge on the consumer needs, since LĂ²Ăââ˘oreal is looking to be successful in Asian market this would be good strategy. And also acquiring local firms gives the firm local advantage against the competitors. And of course helps in making clever advertising.
Acquiring local firms that are already serving male segment Investing on R&D to come up with products to already