SWOT Analysis of Estee Lauder

Estee Lauder Companies is a makeup and cosmetic products manufacturing American multinational company. Joseph Lauder and Estee Lauder founded the cosmetic brand in 1946. Today, we’ll discuss the SWOT analysis of Estee Lauder; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.

Products and services portfolio of Estee Lauder

• Skincare
• Personal care
• Hair care
• Perfumes
• Makeup

Brands of Estee Lauder

• Aerin Beauty
• Aramis
• GlamGlow
• Le Labo
• Aveda
• Mac Cosmetics

Statistical facts and figures of Estee Lauder

• Annual revenue: 15.9 billion USD (2023)
• Net income: 1.01billion USD (2023)
• Employees: 62000
• Asset net worth: 23.4 billion USD (2023)

Competitors of Estee Lauder

• Revlon
• Coty
• Unilever
• Lancom
• Chanel
• Shiseido
• Beiersdorf
• Avon
• L’Oreal

The SWOT analysis of Estee Lauder would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Estee Lauder SWOT analysis as a business strategy analysis example company as follows;

Strengths of Estee Lauder

Some of the main internal strengths in the Estee Lauder SWOT analysis example company as business strategy analysis are as follows;

Large Network

Estee Lauder has established a very large market network. According to an estimate, the company is operating its cosmetics business in approximately over 150 countries across the world. The large and diversified market network helps the company to serve a wide range of customers.

Portfolio

Estee Lauder has established a very large and diversified product portfolio. It comprises a wide range of cosmetic products and services like perfumes, skincare, personal care, beauty, hair care, and others. The large and diversified product portfolio helps the company to serve segments of the customer market with different needs and requirements.

Brand Portfolio

Estee Lauder has developed a very large brand portfolio. It comprises brands like Tom Ford Beauty, Clinique, Jo Malone London, La Mer, and others. The large and diversified brand portfolio shows that the company has successfully diversified its business portfolio and relies on multiple brands as its sources of revenue and sales.

Marketing

Estee Lauder runs various types of marketing and advertisement campaigns for the promotion of its brands products and services. The cosmetic brand employs various media channels, and social and digital media platforms to approach various segments of the customer market.

Supply Chain and Distribution

Estee Lauder has established a very large supply chain and distribution network. It allows the company to efficiently source material, supplies, parts, and elements from various regions; and timely produce and deliver the products to the end consumers.

Acquisitions

Estee Lauder has successfully acquired various brands over the years and expanded its brand portfolio. Acquisition and strategic alliance have allowed the cosmetic brand to amplify its business at a mass scale.

Weaknesses of Estee Lauder

Some of the main internal weaknesses in the Estee Lauder SWOT analysis example company as business strategy analysis are as follows;

Controversies

Estee Lauder has been engaged in various types of controversies like child labor by its partnered suppliers and animal testing. These types of controversial issues and news are attracting negative media publicity. They’re jeopardizing the company’s brand image, revenue, and sales.

Expensive

Many customers consider Estee Lauder’s products expensive and they’re out of their range. There is no doubt that the company’s cosmetic items have the best quality and unique experience, but they’re highly expensive. Customers could easily switch to the low-cost brand.  

Opportunities for Estee Lauder

Some of the main available opportunities in the Estee Lauder SWOT analysis example company as business strategy analysis are as follows;

Market Expansion

Estee Lauder should expand its business into new regions countries and markets across the world. The global market holds great growth potential for the cosmetic business; market expansion would help them to increase their revenue, sales, and network.

Portfolio Expansion

Estee Lauder should expand its product portfolio by launching new types of product lines like organic cosmetic items. The portfolio expansion and new product lines would help the company to attract and target new types of customers in the global market.

Strategic Alliance

Estee Lauder should keep developing strategic alliances, partnerships, and acquisitions with other cosmetics brands and startups. The joint venture and collaboration of resources would help the brand to increase its revenue, sales, and network.

Threats to Estee Lauder

Some of the main potential threats in the Estee Lauder SWOT analysis example company as business strategy analysis are as follows;

Competition

Estee Lauder is facing tough competition from other competitive brands like Avon, Unilever, Coty, and Revlon. They all have established a strong market share and a very loyal database of customers. Their market presence in the cosmetic industry is negatively impacting the sales and revenue of the brand.

Counterfeit Products

Estee Lauder has to deal with various cheap counterfeit manufacturers. They’re deceiving customers by disguising it to be the original; it is negatively impacting the brand image and reputation.

Conclusion: Estee Lauder SWOT Analysis Example Company |SWOT Analysis of Estee Lauder |Business Strategy Analysis

After an in-depth study of the swot analysis of Estee Lauder; we have realized that Estee Lauder is the world’s leading cosmetic brand. If you are learning about Estee Lauder SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.

References