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Estee Lauder

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Mission: “we are committed to develop and maximize the potential of every Beauty Advisor and we believe in promoting from within…not only making you look and feel beautiful…but look and feel successful.”

Vision: “bringing the best to everyone we touch and being the best in everything we do. By ‘the best’ we mean the best products, the best people and the best ideas.”

Step 3: Identify the organization’s external opportunities and threats: External opportunities:
Macro-environmental analysis assist Estee Lauder management to increase its attentiveness of appropriate environmental changes thus improve strategic planning by enriching its industrial and market analysis. Estee Lauder gives direction to countries through the way they exert control over the economy. Barriers to entry, this is low in the case of Estee Lauder as it has made its position pretty strong and hence new entrants will not pose a threat to it as it will be difficult for these to enter into the market as the barriers are pretty high. They also have good access in their distribution channels and the correct knowledge of the segments they are operating in.

Much of the expected growth in the personal products industry will be fueled by the rising demand from emerging and developing markets. In the next 20 years, more than 70million people across the globe will reach an income level that allows purchasing of cosmetic products. The whole continent of Africa is coming online. During 2010, the value of the U.S. dollar relative to other currencies was volatile, which impacts companies with international operations. Basically, when the value of dollar is low, Estee Lauder benefits. Threats:

Estee Lauder has rapid technological changes in its products, and these products can be accessed online via internet. Natural factors help Estee Lauder in showing strategic doubts and their worth in the predicting and planning processes using environmental aspects. There have been emissions of harmful gases and fluorocarbons, which Estee Lauder must take care of as it is and environmental threat. Due to intense advertising and brand name recognition, the industry has a relatively high profit margin compared to other industries. The industry has traditionally focused on female products, although companies are now focusing on the untapped male market. Step 6: Identify organization’s internal strengths and weaknesses. Internal Strengths:

1. Benefits derived from its strong brand portfolio
2. Specialization in product quality
3. Wide scope of the high-end cosmetic industry
4. First cosmetic company to implement Gift with Purchase
5. Implementation of SAP technology
6. Family owned and operated – a sense of small business owner in a large corporation
7. Industry leaders in innovation and customer service
8. Industry recognition: According to NPD Clinique, Estee Lauder and MAC are the best-selling skin-care and up-scale cosmetic lines Weaknesses:

1. Dependency on certain channels for distribution.
2. Lack of diversification
3. Workplace still needs to be updated
4. Family members are the largest shareholders which can effect decision making processes
5. Unspecified target market

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