Using the SWOT model to analyze the development strategy of L’Oréal Group

L’Oréal mainly produces and markets skin care, makeup, perfume, and hair care products. It has many well-known brands, such as Lancôme, L’Oréal Paris, and Maybelline, and its performance is leading in the industry. With technology developing, the way that cosmetics companies sell their products has changed. Big developments and changes are happening in this industry. This paper aims to analyze the strategy of L'Oréal in the new condition. This paper uses SWOT analysis to discover the characteristics of the company, especially compared to its competitors. Then the author uses the data from the balance sheets and income statements of L'Oréal, Estee Lauder, and Shiseido, compares some key ratios, and finds out the strengths and weaknesses of L'Oréal. The author finds out that investment value is its strength. This paper points out the advantages and disadvantages of the L'Oréal company and analyzes the development strategy of the company. Other companies can learn from their experience and better adjust to the new condition in the cosmetics industry.