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Loreal Expansion In China Recommendations Case Studies

Case Study Solution And Analysis

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Loreal Expansion In China Case Study Solution

With the deep analysis of the above options, it is suggested that the business must choose the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would allow the company to not just present brand-new and ingenious items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the revenue margins. It would allow the company to increase its share prices too, as financiers want to invest more in business with considerable R&D costs and increase in the overall worth of the company.

Action and implementation Strategy

Method can be implemented effectively by establishing particular short-term in addition to long term strategies. These plans could be as follows;

Short Term Plan (0-1 year)

• Under the short term plan Loreal Expansion In China should perform various activities to implement its NHW technique effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which generate most of its profits.
• Evaluate the present target audience in addition to the marketplace segment which is not include in the company's circle.
• Analyze the present financial information to determine the quantity that must be invested in the R&D and acquisitions.
• Analyze the potential investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early earnings (dividend). It would let the company to know that how much amount should be spent on R&D.

Mid Term Plan (1-5 years)

• Acquire those companies in which the company has prospective experience to handle. Obtain most beneficial companies with a strong commitment to health, to build the consumer's understandings in the right instructions.
• Focus more on acquisitions than R&D to develop the base in the customer's mind about Loreal Expansion In China worths and vision and to prevent potential threat of sunk cost.

Long Term Plan (1-10 years)

• Acquire organizations with health as well as taste element, as the base for the Loreal Expansion In China as a business producing healthy products has actually been constructed under midterm strategy and now the business might move towards taste aspect as well to understand the consumers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop new products.