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G8_1122_G1_L'oréal, :two:Business Model Canvas :fire: :, :FIVE:…
G8_1122_G1_L'oréal
:two:Business Model Canvas :fire: :
Value Propositions
Customized Product Combinations for Customers
Strong Brand Recognition & Credibility
Wide Variety of Beauty Products
Diverse Price Range
Customer Segments
Makeup Users/Consumers
Professionals (Makeup Artists, Salons, Studios)
Beauty Enthusiasts
Luxury Market (High-Income, Brand & Status-Conscious Consumers)
Key Resources
Recipes & Intellectual Property (IP)
Research & Development (R&D)
Staff, Sales Force, and Developers
Customer Relationships
Personal, One-to-One Direct Sales
Self-Service & Automated Solutions
Sustainability Initiatives
Marketing Towards "Ordinary Women" Rather Than Supermodels
Key Partners
Suppliers and manufacturers
Retail and e-commerce platforms
Product brands
Research institutions
Cost Structure
Logistics, Distribution & Store Rentals
Raw Materials
Staff Salaries & Training
Key Activities
Logistics & Distribution
Manufacturing
Training & Development
Capturing Customer Preferences
Revenue Streams
Product Sales
Channels
Social Media
Online Stores & Websites
Retail Stores
Customer Service
:FIVE: Financial Performance
Overall Financial Trends
Revenue Growth
2023: Revenue +7%, Cost +1% :chart_with_upwards_trend:
Cost Changes
Improved cost efficiency
Operational Performance
Operating Expenses
about 54% of total revenue :money_with_wings:
Operating Income
Approximately 20% of total revenue :moneybag:
Key Expense Distribution
Administrative Expenses (19%)
90,000+ employees :silhouettes:
R&D Expenses (3%)
4,000+ scientists, 6,400 digital talents :male-scientist::skin-tone-2:
Marketing Expenses (32%)
Brand promotion & market expansion :loudspeaker:
Success Factors Analysis
Cost Control
Enhanced operational efficiency
Brand Strategy
High investment in marketing :star:
Innovation & Technology
R&D investments :new:
:four: Growth and corporate scope
Vertical integration
Brand Acquisition
L'Oréal expands its product line and market reach through the acquisition of several brands
Four divisions
(each with a specific product portfolio)
L'Oréal manages its diverse portfolio of brands through four business units, each focused on a specific category of beauty products
Product Diversification, covering all aspects of beauty
L'Oréal's product line covers all aspects of the beauty industry, from skincare to make-up to haircare
Globalization Strategy
Universalization
L'Oréal expands globally with a strategy that understands and respects local cultural differences
Understand and respect cultural differences
At the heart of L'Oréal's globalization strategy is the recognition of the uniqueness of different markets and respect for their cultural values
Meet the needs of different consumers
L'Oréal is committed to providing products and services that meet the preferences and needs of consumers everywhere
Global Network
R&D, innovation and marketing center
L'Oréal has established R&D, Innovation and Marketing Centers around the world to support its product development and marketing activities
Establishment of centers in major markets around the world
L'Oréal has centers in key markets to be closer to local consumers and to respond quickly to market changes
Global industrial layout
L'Oréal has established an industrial footprint across the globe to support its production and supply chain operations
Bring innovative products to market quickly and efficiently
L'Oréal's global network enables it to quickly bring innovative products to the global market
Expansion History
Expansion from Europe to the world (USA, Japan, Brazil, China, India, South Africa, etc.)
L'Oréal has expanded from Europe to include the United States, Japan, Brazil, China, India and South Africa around the world
Get a better understanding of the market
Through global expansion, L'Oréal has been able to gain a deeper understanding of the needs and trends of different markets
To provide products and services that meet the needs of consumers
L'Oréal is committed to providing products and services tailored to the specific needs of different markets
Expand the reach of your enterprise
Global expansion has helped L'Oréal expand its corporate presence and market presence
:one: Background Imformation
Vision,Mission,and Values
Value
Passion for beauty, innovation, excellence, diversity, and sustainability.
Mission
Creating beauty that moves the world through accessibility, sustainability, and empowerment.
Vision
To provide the best cosmetics innovation in quality, efficacy, and safety.
Leadership
CEO: Nicolas Hieronimus
Supported by an executive committee with diverse industry expertise.
Organizational Structure and Management Team
Geographic zones: Western Europe, North America, Asia Pacific, etc.
Four main product divisions
L'Oréal Luxe (Lancôme, YSL Beauté, Giorgio Armani Beauty, Kiehl’s)
Professional Products
Consumer Products (L'Oréal Paris, Maybelline, Garnier, NYX)
Active Cosmetics (Vichy, La Roche-Posay, CeraVe, SkinCeuticals)
Matrix structure combining geographic regions and global product divisions.
History
Started with an innovative hair dye formula called LOréal.
Global presence: Operates in 150+ countries with diverse beauty products.
Founded in 1909 in Paris by Eugène Schueller, a French chemist.
:three: Internal Assessment
Key Activities
Operations
Research & Development
Outbound logistics
Retail Partnerships
Inbound Logistics
Raw Material Sourcing
Marketing & Sales
Advertising Campaign
Services
After-sales Services
Dynamic Capabilities
Airlight Pro
An upcoming product from L'Oréal's R&D department
Partnership
Knowledge Articulation
Research & Development
Resource Integration
Innovation
Resources
Tangible Resources
Beauty Technology
Using AI and AR techniques e.g. Makeup Genius and My Hair ID
Biotechnology
Cooperating with biotechnology company specializing in skin and hair research e.g. Verily
Using natural and renewable materials :recycle:
Intangible Resources
Relational Capital
Corporating with the companies to advocate the communities and gender-based violence e.g. Unstereotype Alliance :silhouettes:
:six: Challenges and Suggestions
Reduce impact on the environment
climate
water
resource
Suggestion
Use 100% recycled and reused water in industrial processes
Plastic used from recycled or biobased sources
Reach 100% renewable energy for operated sites
biodiversity
Rapid advancements in technology
Suggestion
Continuously adapt its digital strategy
Utilize consumer feedback and market research to drive innovation
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