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BUS 536 Global Strategy Assignment

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Global Strategy (BUS 536)

   

Added on  2020-05-11

BUS 536 Global Strategy Assignment

   

Global Strategy (BUS 536)

   Added on 2020-05-11

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Running Head: Business Case StudyBusiness Case Study
BUS 536 Global Strategy Assignment_1
Business Case Study 1Question-1 What were the main issues L’Oréal was facing in implementing its global strategy?L’Oreal was established in the year 1909; this company was established to produce synthetic hairdye from non-corrosive chemical components. The company decided to expand the business in the late 20s century and this is the reason the company acquired a soap producing company and later on the company started introducing shampoos and suntan lotions. Almost from the start, thecompany decided to expand the business in the foreign markets (Hrebiniak, 118). The company entered in European countries, North America, Brazil and other Latin American countries. At this point, the company showed that they are making the use of the global strategy. The global strategy is a process of expanding and competing in a globalised market. L’Oreal is implementing the global strategy so that they can expand their business across the world (Peng 3). The company was facing many issues while implementing the global strategy. One of the issues which are faced by the company while entering the Chinese market was distribution. At that timewhen the company thought to expand the business in China then they find very few markets in China. L'Oreal believes that supermarket is the primary outlet for the bulk of L'Oreal's product lines for its flagship brand. To reach the customer the brand decided to make the use of the departmental stores through which they can easily make the product available to the end users. These departmental stores made the Chinese people understand about the use of the cosmetic product in day to day life. The technique of providing the products through departmental stores opened the ways for the company to expand the business in Paris. The outcome of providing a product at department store made it difficult for a company to get success in the mass retail channel after the supermarket wave hit China.
BUS 536 Global Strategy Assignment_2

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