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Loreal Expansion In China Case SWOT Analysis

Case Study Solution And Analysis


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Loreal Expansion In China Case Study Help

The internal analysis and external of the company also can be done through SWOT Analysis, summarized in the Exhibit F.

Strengths

• Loreal Expansion In China has an experience of about 140 years, allowing company to much better perform, in numerous circumstances.
• Nestlé's has existence in about 86 countries, making it a worldwide leader in Food and Drink Industry.
• Loreal Expansion In China has more than 2000 brand names, which increase the circle of its target customers. These brand names consist of child foods, animal food, confectionary products, beverages and so on. Famous brands of Loreal Expansion In China consist of; Maggi, Kit-Kat, Nescafe, and so on
• Loreal Expansion In China has big quantity of costs on R&D as compare to its rivals, making the company to release more ingenious and healthy items. This development offers the company a high competitive position in long term.
• After adopting its NHW Strategy, the company has done large quantity of mergers and acquisitions which increase the sales development and improve market position of Loreal Expansion In China.
• Loreal Expansion In China is a widely known brand name with high customer's loyalty and brand name recall. This brand name commitment of consumers increases the chances of easy market adoption of various brand-new brand names of Loreal Expansion In China.

Weaknesses

• Acquisitions of those service, like; Kraft frozen Pizza service can provide an unfavorable signal to Loreal Expansion In China customers about their compromise over their core competency of healthier foods.
• The growth I sales as compare to the company's financial investment in NHW Method are quite various. It will take long to change the perception of individuals ab out Loreal Expansion In China as a business offering healthy and healthy items.

Opportunities

• Presenting more health related products makes it possible for the company to capture the market in which consumers are quite conscious about health.
• Developing nations like India and China has biggest markets on the planet. Thus broadening the market towards developing nations can improve the Loreal Expansion In China company by increasing sales volume.
• Continue acquisitions and joint ventures increases the marketplace share of the business.
• Increased relationships with schools, hotel chains, restaurants and so on can also increase the number of Loreal Expansion In China consumers. For example, teachers can advise their students to purchase Loreal Expansion In China items.

Threats

• Financial instability in countries, which are the prospective markets for Loreal Expansion In China, can produce several problems for Loreal Expansion In China.
• Shifting of items from regular to much healthier, causes additional expenses and can cause decline company's profit margins.
• As Loreal Expansion In China has an intricate supply chain, therefore failure of any of the level of supply chain can lead the business to deal with particular issues.

Exhibit F: SWOT Analysis