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Swot Analysis of Estee Lauder Essay

* Exposed to crisis events (SARS, recession, terrorism etc) causing downturn in travel
* Downturn in department store sales
* Other competitors
* Americans stagnating spending on cosmetics

* Growth opportunities in China, Russia, Eastern Europe, Brazil and India
* Availability for strategic alliances in the electronic commerce area
* Plenty of candidates for acquisition

W
S
T
O

* Management expertise
* Marketing ability
* Large market share
* R&D advantage
* Established brands

* Complex structure
* Lack of focus
* Selling costs are 20% of net sales
* Management structure under reorganization after the death of founder, Ms. Estee Lauder

Strengths of Estee Lauder

* Management expertise – The management is an expert when it comes to identifying the consumer needs and preferences and often develops products according to their demand. Their marketing team is also able to come out with strong marketing techniques such as giving out freebies, discounted purchase-with-purchase items and having makeup artist events around the world. * Marketing ability – Estee Lauder products are targeted to the middle-high income group categories and hence are sold only to a limited number of stores that compliments the image of the brands such as department stores, upscale perfumeries, specialty stores, professional hairdressers etc. especially in the U.S.A.

* Large market share – The products of Estee Lauder are being sold in around 150 countries around the world. * R&D advantage – Estee Lauder are the role model and the leader in identifying consumer needs, and preferences and developing products accordingly. * Established brands – The brand is associated with luxury & quality. And it also has a strong brand portfolio

Weaknesses of Estee Lauder
* Complex structure –
* Lack of focus – Lack of concentration regarding customer value
* Selling costs are 20% of net sales –
* Management structure under reorganization after the death of founder, Ms. Estee Lauder –


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