* Exposed to crisis occasions (SARS, recession, terrorism etc) triggering decline in travel
* Downturn in department shop sales
* Other rivals
* Americans stagnating spending on cosmetics
* Growth chances in China, Russia, Eastern Europe, Brazil and India
* Accessibility for strategic alliances in the electronic commerce area
* Lots of candidates for acquisition
W.
S.
T.
O.
* Management know-how.
* Marketing capability.
* Large market share.
* R&D benefit.
* Developed brand names.
* Complex structure.
* Absence of focus.
* Selling expenses are 20% of net sales.
* Management structure under reorganization after the death of founder, Ms.
Estee Lauder.
Strengths of Estee Lauder.
* Management expertise– The management is a specialist when it comes to identifying the consumer requires and choices and typically establishes products according to their demand. Their marketing team is likewise able to come out with strong marketing strategies such as providing out giveaways, marked down purchase-with-purchase items and having makeup artist occasions around the globe. * Marketing capability – Estee Lauder products are targeted to the middle-high income group classifications and for this reason are sold only to a minimal number of stores that compliments the image of the brands such as department shops, upscale perfumeries, specialty stores, professional hair stylists and so on particularly in the U.
S.A.
* Large market share – The products of Estee Lauder are being sold in around 150 countries around the world. * R&D advantage – Estee Lauder are the role model and the leader in identifying consumer needs, and preferences and developing products accordingly. * Established brands – The brand is associated with luxury & quality.
And it also has a strong brand portfolio
Weaknesses of Estee Lauder
* Complex structure –
* Lack of focus – Lack of concentration regarding customer value
* Selling costs are 20% of net sales –
* Management structure under reorganization after the death of founder, Ms. Estee Lauder –
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