Question about International Business 2022
Added on 2022-10-12
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Running head: INTERNATIONAL BUSINESS
International business
Name of the student
Name of the university
Author note
International business
Name of the student
Name of the university
Author note
INTERNATIONAL BUSINESS1
Question: 1
According to the current global cosmetic industry, L’Oreal is the biggest beauty company
in the world. They are having their operations across the world with diversified product portfolio.
According to the given case, it is identified that after the Second World War, L’Oreal initiated
the global market expansion strategy in order to have their presence beyond their home country.
It is stated that prior to the Second World War, L’Oreal was having their presence only in the
French market, which caused limited brand identity and market opportunities for them. In the
later stage, the rapid market expansion helped L’Oreal in gaining more global market share. In
addition, in the initial stage of the market expansion strategy, L’Oreal targeted the United States,
which at that time was the biggest market for the beauty products. Hence, from the initial stage
of the global operation of L’Oreal, they gained the most potential customer bases in the market.
This should also be noted that United States are also the home of the most affluent customer
segments, which is also beneficial for L’Oreal for selling their premium sets of products. This
can be concluded that selection of the right market is one of the major reasons behind L’Oreal
becoming the biggest beauty brand in the world. Positioning in the market also contributed in the
gaining of the market leadership status of L’Oreal. This is due to the reason that they designed
their physical evidences such as the retail stores and the artifacts in line to the premium
positioning. For example, the retail stores of L’Oreal are located in the high streets.
In becoming the market leader in the global market, acquisitions are having huge role in
the process. This is due to the reason that according to the case given, there are number of
acquisitions being made by L’Oreal in their industry to gain the foothold in different markets.
For instance, they acquired Kiehl’s in 2000, which was the leading beauty brand in the United
States that time. Thus with the acquisitions of Kiehl’s, L’Oreal gained the extensive foothold in
Question: 1
According to the current global cosmetic industry, L’Oreal is the biggest beauty company
in the world. They are having their operations across the world with diversified product portfolio.
According to the given case, it is identified that after the Second World War, L’Oreal initiated
the global market expansion strategy in order to have their presence beyond their home country.
It is stated that prior to the Second World War, L’Oreal was having their presence only in the
French market, which caused limited brand identity and market opportunities for them. In the
later stage, the rapid market expansion helped L’Oreal in gaining more global market share. In
addition, in the initial stage of the market expansion strategy, L’Oreal targeted the United States,
which at that time was the biggest market for the beauty products. Hence, from the initial stage
of the global operation of L’Oreal, they gained the most potential customer bases in the market.
This should also be noted that United States are also the home of the most affluent customer
segments, which is also beneficial for L’Oreal for selling their premium sets of products. This
can be concluded that selection of the right market is one of the major reasons behind L’Oreal
becoming the biggest beauty brand in the world. Positioning in the market also contributed in the
gaining of the market leadership status of L’Oreal. This is due to the reason that they designed
their physical evidences such as the retail stores and the artifacts in line to the premium
positioning. For example, the retail stores of L’Oreal are located in the high streets.
In becoming the market leader in the global market, acquisitions are having huge role in
the process. This is due to the reason that according to the case given, there are number of
acquisitions being made by L’Oreal in their industry to gain the foothold in different markets.
For instance, they acquired Kiehl’s in 2000, which was the leading beauty brand in the United
States that time. Thus with the acquisitions of Kiehl’s, L’Oreal gained the extensive foothold in
INTERNATIONAL BUSINESS2
the United States along with the existing customer base. On the other hand, acquisition strategy
of L’Oreal also helped them in creating diversified product portfolio, which further helped in
meeting the different requirements of different customer segments. For example, they have
acquired Ralf Lauren with the help of which, L’Oreal gained the market share in the premium
fragrance segment. Hence, they gained the advantages of catering to different customer
segments. The current market scenario, where L’Oreal is having their presence across different
segments of the cosmetic industry is mainly due to their acquisitions of different firms. Other
major advantages that are being gained by L’Oreal from the initiation of acquisitions are existing
target customers base, positive brand value and global brand expertise. Each of the acquired
firms is having different level of expertise that is being gained by L’Oreal. They have
successfully leveraged the brand value of the acquired firms in gaining competitive advantages
in the global market, which in turn lead to the market leadership status of L’Oreal.
Question: 2
As per information gathered from the given case, the current product portfolio of L’Oreal
is consisting of the premium products that are mainly acceptable among the premium and higher
end customer segments. In this case, their French and American concepts are successful because
these countries are developed economies with more number of affluent customers. As of now,
L’Oreal is following French and American concepts in their business operations. For example,
Harley Davidson bikes are there in the retail stores of L’Oreal, which denotes their all American
culture in their business. This is having multiple advantages for L’Oreal with one of them is
leveraging on the cultural imperialism. This is due to the reason that with the help of the cultural
imperialism and globalization, customers from across the world are getting attracted by the
dominant western cultures. Hence, the American and French cultures being followed by L’Oreal
the United States along with the existing customer base. On the other hand, acquisition strategy
of L’Oreal also helped them in creating diversified product portfolio, which further helped in
meeting the different requirements of different customer segments. For example, they have
acquired Ralf Lauren with the help of which, L’Oreal gained the market share in the premium
fragrance segment. Hence, they gained the advantages of catering to different customer
segments. The current market scenario, where L’Oreal is having their presence across different
segments of the cosmetic industry is mainly due to their acquisitions of different firms. Other
major advantages that are being gained by L’Oreal from the initiation of acquisitions are existing
target customers base, positive brand value and global brand expertise. Each of the acquired
firms is having different level of expertise that is being gained by L’Oreal. They have
successfully leveraged the brand value of the acquired firms in gaining competitive advantages
in the global market, which in turn lead to the market leadership status of L’Oreal.
Question: 2
As per information gathered from the given case, the current product portfolio of L’Oreal
is consisting of the premium products that are mainly acceptable among the premium and higher
end customer segments. In this case, their French and American concepts are successful because
these countries are developed economies with more number of affluent customers. As of now,
L’Oreal is following French and American concepts in their business operations. For example,
Harley Davidson bikes are there in the retail stores of L’Oreal, which denotes their all American
culture in their business. This is having multiple advantages for L’Oreal with one of them is
leveraging on the cultural imperialism. This is due to the reason that with the help of the cultural
imperialism and globalization, customers from across the world are getting attracted by the
dominant western cultures. Hence, the American and French cultures being followed by L’Oreal
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