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L'Oréal: Attracting the Next Billion Consumers (Full Version)

HEC-S39L
Résumé
The case presents the global expansion of L'Oréal and raises the question of how this expansion should be conducted. More specifically, it focuses on the issue of the extent to which products, brands and policies should be adapted to each local market or, on the contrary, standardized on a global level.

The case first offers an overview of how L'Oréal was created, has grown, diversified and expanded internationally to eventually become the company it is in 2015. It then presents the main features of the global cosmetics market and industry. The case goes on to describe in some detail L'Oréal's main product lines, its brands and operations (R&D, marketing, manufacturing, sales and distribution). Finally it discusses the way in which L'Oréal has chosen to expand internationally and raises some of the difficult questions the company is facing in 2015. The appendices present descriptive data on the company, its products and brands, on the industry, on competition, etc. In addition, specific appendices present a more detailed account of L'Oréal's operations in a number of large foreign markets: Brazil, China, Japan, Russia, the US, etc.

The main focus of the case is on striking the right balance between adaptation to specific local conditions and integration / standardization which is required to reap the benefits of global scale and leverage the company's simultaneous presence in multiple markets. The data in the case makes it possible to illustrate this clearly and to estimate which types of products should be more adapted and which require greater standardization.
Objectifs pédagogiques
1 - To understand the main strategy issues associated with international expansion and with formulating a global strategy for the firm: local adaptation vs. global integration; concentration vs. dispersion of activities; autonomy vs. decentralization of decision making.
2 - To bring students and participants to realize that multinational/foreign firms suffer from a "liability of foreigness" that they must more than compensate for by leveraging some resources and sources of advantage at a global level.
3 - To highlight the implications of adapting to local customer preferences and other local market conditions and get students and participants to understand that there are major costs disadvantages associated with too much adaptation.
4 - To show that the right balance between local adaptation and global integration varies by industry, business, product categories, countries and customer segments.
5 - To get students and participants to realize that a firm's international organization and decision-making processes directly impacts the way in which it will address this "local adaptation / global integration" issue.
Mots-clés
Global strategy, international management, local adaptation, global integration, organization structure for international operations
Public
Masters, Grande Ecole students and Executive Education participants with a knowledge of the fundamentals of business strategy.
This case fits well towards the end of a Strategy or Strategic Management course or can be used in an International Management course.
Secteur d'activité
Cosmetics and personal care products
Caractéristiques particulières
Short case also available.
Teaching note supplement with PowerPoint slides (16 slides).
Duration: anywhere from 1,5 hours to a full half-day session (4 hours).
2015
Livraison par lien de téléchargement
35 avec 23 page(s) annexe(s)
plus de 3 heures
Oui (6 pages) - incluse

Adhérents : 360,00 € HT / Non adhérent : 720,00 € HT
Campus*
* Usage illimité pour un campus sans limite de nombre d'étudiants.

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