Recommendations of Estee Lauder Companies Adapting Csr To The Cosmetics Industry Case Help

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Recommendations of Estee Lauder Companies Adapting Csr To The Cosmetics Industry Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of various options, the business is advised to think about alternative 3. As alternative 3 would permit the business to broaden in worldwide markets with no decrease in its regional revenues and any degeneration of its market position. By considering Alternative 3, the company could maintain its store experience and brand uniqueness. It might also consider alternative 2 that might permit the business to access the markets without any potential financial investment. Although, the company could pursue alternative 1 which would enable the business to concentrate on prospective international markets rather than the local markets but as the company is highly based on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the significant decrease in company's earnings. For that reason, the business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Estee Lauder Companies Adapting Csr To The Cosmetics Industry Case Help Stores

The company has a long term market position in United States which can not be produced soon in the new markets. The alternative would help the business to expand in worldwide markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Expedition of brand-new international markets.
• Increase in profits from global markets.
• Elimination of problems connected to diversity.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Estee Lauder Companies Adapting Csr To The Cosmetics Industry Case Solution Stores

Alternative 2 consists of the introduction of online market places through producing a correct business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present an extreme danger to the marketplace share of business. Furthermore, the competitors are shifting towards click and Recommendations of Estee Lauder Companies Adapting Csr To The Cosmetics Industry Case Analysis shops with Gap introducing Piperline. This shift towards online markets could reduce the earnings for company. In this situation the company could consider presenting Click and Recommendations of Estee Lauder Companies Adapting Csr To The Cosmetics Industry Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic shops. The pros and cons of option 2 are offered as follows;

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Elimination of brand name Originality
• Removal of the fantastic store experience.
• Danger of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the company could think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of revenues of the company. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in profits from global markets.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems related to diversity.
• Differences in cultures might caused a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.



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