Estee Lauder Company

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Category: Business and Industry

Date Submitted: 01/29/2011 09:55 PM

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Problem Definition-

Estee Lauder Company is a cosmetic product line which sells all type of cosmetics the world over. It has seen increases and it seems to be a healthy company. However, the problem Estee Lauder is trying to tackle is its drop in lower sales in the fragrance Product Category. Estee Lauder also needs to affirm that it is a leader in prestige beauty and that it will continue to be a global leader.

Format of SWOT Analysis

1. Opportunities

a. Economics Opportunities-

- Estee’s Prices vary from product to product and from brand to brand which tend to be in the mid-high range industry. The mid-high and high-range classes will always be there and Estee will continue to have a strong market base so long as its products are good.

- 70 million people across the globe will reach an income level that allows purchasing of cosmetic products.

b. Social, Cultural, Demographic, and Environmental Opportunities

- Geographic regions will be impacted by the world’s aging population will multiply by 2.5 times. This aging population are able to afford Estee Lauder.

- Creates an environment that fosters personal growth and well being

c. Political, governmental and legal Opportunities

NA

d. Technological Opportunities

- Estee will continue to devote a good amount of money to research, development and technology in order to be a leader in the market.

- Estee will be able to continue patterns of innovative research.

e. Competitive Opportunities

-The competitors in the cosmetic business are diversified with many brands and so is Estee. This forces a stiff competition in the market and in introduction of a theory “survival of the fittest”.

2. Threats

a. Economics Threats

- The rising demand from emerging and developing markets. Will Estee Lauder have the ability to bring this target market on board?...That’s the question.

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b. Social, Cultural, Demographic, and Environmental Threats

- There have been consumer complaints...