UNDERSTAND THE PROCESS OF STARTEGY PLANNING Assignment

UNDERSTAND THE PROCESS OF STARTEGY PLANNING - Assignment Example The company’s strength is in its research and development team which focuses on dermatology and cosmetology. Such capability has allowed the company to develop new products like Armani Code Donna. The company has continuously registered dismal performance in North America where Procter and Gamble is doing well. In the hair styling market, in Western Europe, the company is doing poorly. Such performance undermines investor confidence (L’Oreal Annual Report). Markets like United States provide the company with new opportunities. The old population in United States provides a large market for beauty products. They use revitalizing lotions and cosmetics that give them a good appeal and appearance. Emerging markets in Brazil, India and China provides market for the company’s cosmetic products. Indians provide a high demand for hair color products. Threats faced by L’Oreal include consumers opting for new technologies like organ transplant, cosmetic surgery and advanced dermatology, the company could lose market for its products. Increased competition from companies like Avon, Revlon, Procter and Gamble, Unilever, and others poses a significant threat to L’Oreal. Availability of counterfeit products in the market reduces consumer confidence and tarnishes the brand image. PESTLE analysis establishes the political, economic, social, technological, legal and the environment in which a company thrives. The company is doing well in local and international markets. The hair color products of the company are in high demand, in India. The company registered 70 million new consumers worldwide and is targeting an increment of outlets in new markets. Socially, the company involves itself in education, affirmative action, science and other issues. The company continues to improve social lives in many countries. The most significant involvement is a partnership with United