Strategic management is the art and science of formulating, implementing and evaluating cross functional decisions that enable an organization to achieve its objectives (Fred, 2011, p. 6). The researcher examined the present condition of market trends and the strategies adopted by a company that is world renowned as a premium leader in cosmetic brands. Pursuant to this examination, the researcher has chosen the world’s leading cosmetics company, L’Oréal as a case study. The aim is to have a better understanding of strategic management and to conduct a strategic analysis on one of L’Oréal’s cosmetic brands - Soft Sheen Carson. The primary reason for selecting Soft Sheen Carson is to study L’Oréal’s effective acquisition strategy. L’Oréal
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This product was a solution that radically reduced the amount of time it took to relax hair for women of color - from almost eight hours to only two. The innovation was a remarkable success and Soft Sheen capitalized on that success by launching a full line of Care Free Curl products, including shampoos, conditioners, gels, and sprays. The products were sold both in salons and in drugstores and eventually to overseas markets. The popularity of Care Free Curl drove revenues up at an almost unbelievable pace, from US$500,000 in 1979 to US$55 million by 1982 (“International Directory of Company Histories,” …show more content…
A London-based manufacturer of ethnic hair care products and the largest black-owned business in Europe. Dyke and Dryden’s primary markets were the United Kingdom and Africa. The acquisition of Dyke and Dryden gave Soft Sheen a solid entry into a market of approximately 440 million potential customers. However, this optimism was short lived and Soft Sheen did not have great success in penetrating foreign markets and domestic sales continued to be a ‘Cash Cow’ for the Company. The overall meltdown in sales was compounded by increased competition within the industry. An increasing amount of large cosmetics firms were looking for a share of the ethnic market by adding their own ethnic product lines or acquiring smaller black hair care companies (“International Directory of Companies,”
This product was a solution that radically reduced the amount of time it took to relax hair for women of color - from almost eight hours to only two. The innovation was a remarkable success and Soft Sheen capitalized on that success by launching a full line of Care Free Curl products, including shampoos, conditioners, gels, and sprays. The products were sold both in salons and in drugstores and eventually to overseas markets. The popularity of Care Free Curl drove revenues up at an almost unbelievable pace, from US$500,000 in 1979 to US$55 million by 1982 (“International Directory of Company Histories,” …show more content…
A London-based manufacturer of ethnic hair care products and the largest black-owned business in Europe. Dyke and Dryden’s primary markets were the United Kingdom and Africa. The acquisition of Dyke and Dryden gave Soft Sheen a solid entry into a market of approximately 440 million potential customers. However, this optimism was short lived and Soft Sheen did not have great success in penetrating foreign markets and domestic sales continued to be a ‘Cash Cow’ for the Company. The overall meltdown in sales was compounded by increased competition within the industry. An increasing amount of large cosmetics firms were looking for a share of the ethnic market by adding their own ethnic product lines or acquiring smaller black hair care companies (“International Directory of Companies,”