Estée Lauder Companies Inc. is an American manufacturer of beauty products. The company went public in 1946 in New York City. Estée Lauder and her husband Joseph Lauder founded the company; the two expanded the company by beginning international distribution.
Estée Lauder being such a high-end manufacturer and marketer comes with a number of strengths. One of the strengths includes the company’s distribution to high-end retailers. Another strength contains specialization in product quality, meaning they use the finest production factories to manufacture their cosmetics. Another asset is that this particular business is until today operated by the Lauder family, giving it a sense of small business owner in a large corporation. Today Leonard Lauder is the chairman of this association (stated in the interview). The company’s high value of the brand name is definitely …show more content…
Limited distribution strategy is a disadvantage for a company in such a competitive field today. Estée Lauder distributes its products to very high-status department stores, retail stores and prestigious salons and spas. Their restricted supply tactic is a competitive disadvantage especially with the company’s competition with several other products sold today. While the competition grows each day, Estée Lauders reach to the consumer’s limits. Not only does it make it limited, it has high reliance on certain retailers, meaning if any unfavorable change were to occur in that certain store, it would place Estée Lauder in a risky position. Another weakness is that the family members are the largest shareholders, meaning they have the largest effect in the decision making process. In the voting ratio 87% of the voting power goes to the family (stated in the interview) meaning they hold the most influence of the major decisions, which in some cases the family can vote something while having different
Estée Lauder being such a high-end manufacturer and marketer comes with a number of strengths. One of the strengths includes the company’s distribution to high-end retailers. Another strength contains specialization in product quality, meaning they use the finest production factories to manufacture their cosmetics. Another asset is that this particular business is until today operated by the Lauder family, giving it a sense of small business owner in a large corporation. Today Leonard Lauder is the chairman of this association (stated in the interview). The company’s high value of the brand name is definitely …show more content…
Limited distribution strategy is a disadvantage for a company in such a competitive field today. Estée Lauder distributes its products to very high-status department stores, retail stores and prestigious salons and spas. Their restricted supply tactic is a competitive disadvantage especially with the company’s competition with several other products sold today. While the competition grows each day, Estée Lauders reach to the consumer’s limits. Not only does it make it limited, it has high reliance on certain retailers, meaning if any unfavorable change were to occur in that certain store, it would place Estée Lauder in a risky position. Another weakness is that the family members are the largest shareholders, meaning they have the largest effect in the decision making process. In the voting ratio 87% of the voting power goes to the family (stated in the interview) meaning they hold the most influence of the major decisions, which in some cases the family can vote something while having different