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

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

On the basis of above internal and external analysis of the company along with the assessment of different options, the business is recommended to consider alternative 3. As alternative 3 would enable the business to broaden in international markets with no reduction in its local profits and any deterioration of its market position. By considering Alternative 3, the company could keep its store experience and brand name uniqueness. It could likewise think about alternative 2 that might enable the business to access the markets without any prospective financial investment. The company could pursue alternative 1 which would make it possible for the company to focus on possible global markets rather than the local markets but as the company is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in company's profits. Therefore, the company is suggested to consider alternative 3.

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

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although an excellent option for increasing the global presence of the company. Nevertheless, the closing of domestic shops might highly affect the earnings of the firm as above 90% of its shops are located domestically and closing those shops would eventually reduce the profits of the firm. Additionally, the business has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would assist the company to broaden in global markets together with the elimination of problems raised in its regional markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from international markets.
• Removal of concerns associated with variety.
• Revenue diversification.
• Action towards being a strong global brand.

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.

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

Alternative 2 includes the introduction of online market places through generating a correct company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture a severe hazard to the marketplace share of business. The rivals are shifting towards click and Recommendations of Estee Lauder Companies: Adapting Csr To The Cosmetics Industry Case Analysis stores with Gap introducing Piperline. This shift towards online markets might decrease the earnings for company. In this situation the business might think about presenting Click and Recommendations of Estee Lauder Companies: Adapting Csr To The Cosmetics Industry Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Individuality
• Removal of the excellent store experience.
• Danger of decline in elite sales.

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

Another alternative that the business might think about, is to expand towards the global markets without closing its domestic stores that adds to the huge part of incomes of the company. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Reducing competition danger
• Access to the world markets
• Expanding customer base
• Big Earnings
• Expedition of new global markets.
• Boost in earnings from worldwide markets.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Extension of concerns related to diversity.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.



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