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1.0 CASE ABSTRACT

Based in New York City, Estee Lauder has been one of Americans major corporations as well
as being one of the worlds leading manufacturers and marketers of quality skin care, makeup,
fragrances, and hair products. The company was first established in 1946 and became public in
November 1995. Up until today, Estee Lauder expands its sales to over 140 countries with more
than 9000 products under various brands. Products of Estee Lauder are divided into skin care,
makeup, fragrances, and hair products. Products of Estee Lauder are mostly marketed around the
globe through the use of mediums such as department stores, specialty retailers, upscale
perfumeries, pharmacies, salons, and spas. Estee Lauder also owns free standing stores where
products also marketed as well as the use of technological facilities offered by modernization
such as e-commerce in selected countries.

Estee Lauder focuses its strategies towards global reach that emphasizes continuous
research and development with investments over 80 million dollars to the program itself mainly
done in the United States, Belgium, and Japan. Estee Lauder allocated alongside these research
and development facilities are manufacturing facilities within these countries as well as Canada,
Switzerland, China, and Germany where all the manufacturing facilities are strategically located
near the marketing area where the products are actually distributed. By maintaining low cost
strategy and keeping the sales revenues high, Estee Lauder aims to occupy the entire market
niche ranging from the low end up until the very high end market niche. By doing so and
additionally with its wide variety range of brands, Estee Lauder emphasize the idea that
everybody can have a slice of the pie. Estee Lauder also astonishingly able to maintain a positive
net income even though the globe went through massive recession and beyond which also
signifies how strong of a company Estee Lauder is.

Estee Lauder founded the 8 billion dollars company, Estee Lauder Companies which is
currently an organization that engaged in four main spectrums of beauty products throughout the
globe covering activities such as manufacturing, marketing, and sales. Estee Lauder
revolutionized the cosmetic industry with just a simple and plain idea of: every woman can be
beautiful. It all started in her kitchen when she began making face creams which later went
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forward and sells them to beauty salons. Her effort, creativity, philosophy, and drive brought
about the launching of Estee Lauder Company in 1964 together with her husband. She also
pioneered the gift with promotion and also gave away samples of her products with every
purchase. She believed that in order to make a sale, you had to touch the customer, to show them
first hand and explain the products, which leads the company towards the personal High-Touch
service strategy. Creativity, entrepreneurship, and integrity is the three core values for Estee
Lauder and still remain as the focal point of the company and these three core values managed to
bring the company up to the level of being the global leader in prestige beauty with High-Touch
strategy being the central feature of Estee Lauders services.

Estee lauder proved its resilience by its successful fiscal year in 2010 after disappointing
2009 downturn. Estee Lauders net sales increased 6% due to the growth in makeup, skin care,
and hair care products which generates a record gross margin of 76.5 %. Operating income
almost doubled from 2009 to 2010 and net earnings increased from 218 million to 478 million.
Skin care products contributes the highest income where it account for 41 % of net sales
followed by makeup at 38 % , fragrance at 15 %, and hair care products at 5 % of net sales. Most
of Estee Lauders sales derived from outside of North and South America which account for 56
% of net sales. Net sales in America remained relatively flat with increase of less than 1 % which
accounts for 36 % of net sales for Estee Lauder. In Europe, the Middle East, and Africa, net sales
increased up to 9 % which reflects higher net sales from travel retail and distributor businesses.
Net sales in Asia/Pacific also shows increase up to 16 % in 2010. The strategic growth of in
China alongside positive outcome from Korea and Hong Kong also contributed towards the
increase of net sales in Asia/Pacific.

By the year 2004, the company lost its most important person and that is Mrs. Estee
Lauder herself due to cardiac arrest. The loss was a great one for the company, but Mrs. Lauder
herself witnessed her empire growth from a small home based operation into worldwide global
transactions and up until now proudly stands on the top of the industry where Estee Lauder
herself revolutionized during her time. Now, the company is led by her Estee and Josephs
children and grandchildren. The company is 70% owned by the Lauder Family which dominates
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the voting shares and the current chairman of the company is the grandson of Estee Lauder
acting as the chairman of the Board of Directors.

2.0 VISION AND MISSION STATEMENT

Estee Lauders Companies vision is Bringing the best to everyone we touch and being
the best in everything we do. By the best we mean the best products, the best people, and the best
ideas. The company is very committed towards uncompromised ethics and integrity covering all
domestic and global scale as well as the board of directors. The very condition of employment
standardized by Estee Lauder is the highest standard of ethics of professional and personal
conducts. Estee Lauder does not have any written mission statement for the company.

2.1 Proposed Vision and Mission Statement

A vision is like an objective of the company that incline where the company wants to be, what
the company wants to achieve, what the company wants to be, and what the company wants to
do. As for this case analysis, most of the time the vision statement is also included with certain
time frame but it is not a mandatory criteria, the proposed vision statement is:
To become the worlds largest and most influential cosmetics firm
A mission statement is basically is the statement of how will the company achieve the its vision.
In this case abstract, the proposed mission statement is taken from the current vision statement of
the Estee Lauder which is:
Bringing the best to everyone we touch and being the best in everything we do.








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3.0 OPPORTUNITIES

1. Rising demand from developing and emerging markets where in the next 20 years there
will be more than 70 million working population across the globe will reach an income
level that allows purchasing of cosmetics products
2. The whole continent of Africa is coming online which will bridge the geographical gap
between companies and their consumers in a more effective and efficient manner.
3. Global womens purchasing power is expected to increase by 5 trillion by 2015 and
beauty is the category these consumers are most likely to spend money on after food and
clothing.
4. By the year 2030, Americans over the age of 65 will represent one-fifth of the population
which is expected to devote a substantial part of their discretionary income into anti-
aging product.
5. Younger customers age 20 to 30 years old are choosing to invest their money into
preventive cosmetics to battle the effects of aging. Additionally the teens also thinking
about spending their money on these type of products.
6. By the next 40 years, the worlds aging population will multiply by 2.5 times
representing over 33% of the total population.
7. Life expectancy for the aging population will continue to improve providing substantial
period of marketing opportunities and durability within the industry for specific market
target.
8. Green products appear to be maintaining their position in the economy struggle and these
natural and organic products appear to be favorably received by consumers.








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4.0 THREATS

1. High unemployment where the increase levels of job insecurity among the working
population will decrease most of the peoples purchasing power.
2. The rising of energy prices will significantly impact transportation costs such as gas
prices. The increase of energy prices will also increase the producing costs of pulp
through the increase of gas price. Pulp is used in the manufacturing of plastic used for
packaging.
3. Regulations by U.S Department of Agriculture under the Standards of the National
Organic Program (NOP) which states that 95% of the products contents must be organic
and this regulations also extends to the manufacturing processes.
4. Aggressive competition by the competitors that are targeting the same market segment
5. Change of Consumers spending pattern of luxury goods.
6. Competitive pricing of other similar effect or substitute products which are sometimes
amount to 60% lower.
7. Internet security threat on its e-commerce application
8. Foreign currency fluctuations
9. Changes in laws, regulations, and policies of either the base country or the target country
which will bring significant impact towards the ability and efficiency of marketing in that
particular country. Changes in regulations also came from the increasing activities of
different groups voicing their objection towards harmful chemical ingredients and the use
of animal as test subjects in cosmetics products.









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5.0 COMPETITIVE PROFILE MATRIX

5.1 Summary of Competitors

Company Revenues
(Billions)
Net Income
(Billions)
Employees Countries
Marketed
Avon Products 10.862 0.6063 N/A 100
Colgate-Palmolive 15.564 2.203 N/A N/A
Estee Lauder 7.795 0.478 22000 150
L Oreal 19.5 2.2 66619 130
Pocter & Gamble 78.9 19.1 127000 140
Revlon 2.167 0.0946 N/A N/A

Based on the summary of the competitors given above, Procter & Gamble (P & G) is the
biggest competitor for Estee Lauder based on the numbers of employees worldwide and the
amount of net income and additionally most products of P&G compete directly with the products
from Estee Lauder. Another competition that must be taken into great consideration is Avon
whereby Avon competes with Estee Lauder with almost all spectrums of products which Estee
Lauder offers to consumer. Other competitors such as Revlon and Colgate-Palmolive are also
significant competition to Estee lauder but due to the insufficient data, the other competitors will
be used instead for the Competitor Profile Matrix. Therefore, these 2 competitors; P&G, and
Avon will be used in the Competitor Profile Matrix (CPM).









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5.2 Competitive Profile Matrix

Estee Lauder Procter & Gamble Avon
Critical Success
Factor
Weight Rating Weighted Rating Weighted Rating Weighted
Score Score Score
Market Share 0.15 3 0.45 3 0.45 2 0.3
Price
Competitiveness
0.1 2 0.2 3 0.3 3 0.3
Financial Position 0.07 2 0.14 4 0.28 3 0.21
Product Quality 0.1 2 0.2 4 0.4 3 0.3
Employees 0.05 1 0.05 4 0.2 3 0.15
Customer Service 0.1 4 0.4 4 0.4 4 0.4
Low Cost Structure 0.13 2 0.26 3 0.39 2 0.26
Variety of Products 0.05 4 0.2 4 0.2 4 0.2
Distribution
Channels
0.1 3 0.3 3 0.3 4 0.4
Strong Online
Presence
0.05 4 0.2 2 0.1 2 0.1
Advertising
Abilities
0.05 2 0.1 4 0.2 4 0.2
Marketing Abilities 0.05 3 0.15 4 0.2 4 0.2
Total 1 - 2.65 - 3.42 - 3.02

The weight for each factor represents the significance of the factors that range from low
importance (0.0) to high importance (1.0). In the table above, the higher the weight for the factor,
the more critical the factor is towards success of the company. The ratings range from 4 to 1
where 4 represent major strength, 3 for minor strength, 2 for minor weakness, and 1 for major
weakness. Each company receives a score on each factor and the total score is simply the sum of
individual score for each company. Company that receives higher score is relatively stronger
than its competitor.

The success factor with the highest weight is the market share. Market share represents
customers and is the most important thing in a stiff competing environment especially when the
competitors are relatively larger in many aspects from the company itself. Estee Lauder only
rated 3 which represents for minor strength, while P&G were rated 4 for major strength, and only
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2 for Avon that represents minor weakness. Even though Estee Lauder posses the most number
of countries where products are distributed with over 150 countries worldwide, but among these
3 companies Estee Lauder were the less profitable company rather than Avon with only 100
countries with its marketed products and of course P&G with only 140 countries but stands at the
top with the highest value of revenues and net income generated. The second highest factor is the
low cost structure where Estee Lauder only rated 2 which indicate minor weakness as Estee
Lauder utilizes the prestige price strategy and focused more on mid range to high range price
levels. The next important factors are price competitiveness, product quality, customer services,
and distribution channels. Among these 4 factors, Estee Lauder only scored one of them as its
major strength, one minor strength, while the other two were rated as minor weakness. Other
factors that Estee Lauder were rated as major strength are variety of products which beat other
competitors with over 9000 products distributed under 28 different brands, and strong online
presence as Estee Lauder is the first prestige cosmetics firm that introduces shopping via
internet. The other factor especially those with higher weight did not score very well as the other
competitors do. The total weighted score for Estee Lauder is 2.65 which is just slightly above the
average score and being the lowest of the 3 competing firms. Even though considering the size of
the company with the lowest number of employees rather than the other two Avon and P&G
company, Estee Lauder actually doing considerably good in the harsh and fierce competing
environment particularly within the same market segment for the industry.

5.2.1 Intensive Marketing Strategy

Based on the result obtain with the competitive profile matrix, what Estee should do is to
improvise its intensive strategies involving market penetration to increase market share for
present products in present markets which at the same time will also improve other factors such
as financial position. Marketing efforts also include cost leadership strategy that in line with the
low cost structure that will at the same time build up the companys price competitiveness. As
well as doing aggressive market penetration, Estee Lauder should also do aggressive market
development where Estee Lauder went out and proactively introduce present products in new
geographic areas or finding new market segments for present products. Estee Lauder should
expand its operations and penetrates new markets as well as penetrates deeper into the existing
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market environment to compete more efficiently in the market. Furthermore, within the intensive
strategy also include the development of products which will increase the quality of products
through research and development activities throughout the businesses itself that covers not only
the products but also other aspects such as customer services, human resource management, and
how to create strong online presence.

The intensive strategy consist of market penetration, market development, and product
development that will cover most of the critical success factors listed in the CPM which Estee
Lauder did not scores well. This strategy can greatly help the company to efficiently compete
within the industry as well as increasing and upgrading the condition of the company in the long
run.

5.2.1.1 Market Penetration

The rating for market share factor of Estee Lauder is relatively low even though it is the
same rating with the biggest competitor in the market, P&G. in order to increase market share of
the company, Estee Lauder must improvise strategy to further penetrate market around the globe
both for developing and for emerging new market available. Estee Lauder should apply proactive
measures in obtaining market share as well as to rob the market share of other competitors. To
increase market share effectively, the company should utilize strategy to push present products in
present markets as well as emerging markets through greater marketing efforts such as
advertising methods, price leadership strategy, low price structure and with the help of
technological revolution; the internet. Through market penetration, company can effectively
increase its market share and at the same time can also try to steal the market share of other
competitors for the sake of the company and also for the sake of competitive advantage.

5.2.1.2 Market Development

Market development is done through expanding the products offerings to foreign nation
especially developing and emerging markets all around the world. The aim is to bring the present
products to a new market environment. This strategy may be hard to exercise but Estee Lauder
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has over 9000 products under 28 different brands altogether which gave Estee Lauder some kind
of flexibility in penetrating new geography area to market its products in. Each product has its
own unique characteristics in aspects such as price which is very important when doing
penetration of market especially to new markets where the populations purchasing power is still
unknown. The price range that Estee Lauder has to offer can also be very helpful in easing
market development to new geographical market and new market segments within the industry.

5.2.1.3 Product Development
Another strategy to improve the critical success factor for Estee Lauder is through the
implementation of product development. Product development concerns mainly on the marketed
product itself which is to increase the number of sales for a particular product by improving the
condition and criteria of the product. With facilities in almost every continent on the globe, as
well as more than 450 scientists working for Estee Lauder, product development can be done in a
more efficient way to ensure ultimate satisfaction of customers. Besides doing improvements on
existing products, product development also include developing new products for distribution.
The suitability of a product towards certain conditions is varied in many ways. Some products
may be suitable for women but not men, but some might be suitable for both. Therefore
depending on certain conditions, to increase market share and other significant success factor,
Estee Lauder should consider revising its strategy towards a more suitable strategy to utilize in
ensuring its survival in the harsh and fierce competition of the cosmetics industry.











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6.0 EXTERNAL FACTOR EVALUATION

EXTERNAL FACTOR EVALUATION
Opportunities Weight Rating Weighted
Score
Rising demand from developing and emerging markets where in
the next 20 years there will be more than 70 million working
population across the globe will reach an income level that
allows purchasing of cosmetics products
0.05 4 0.2
The whole continent of Africa is coming online 0.05 4 0.2
Global womens purchasing power is expected to increase by 5
trillion by 2015
0.07 3 0.21
By the year 2030, Americans over the age of 65 will represent
one-fifth of the population
0.1 3 0.3
Younger customers age 20 to 30 years old are choosing to
invest their money into preventive cosmetics to battle the effects
of aging.
0.08 3 0.24
By the next 40 years, the worlds aging population will multiply
by 2.5 times representing over 33% of the total population.
0.1 3 0.3
Life expectancy for the aging population will continue to
improve
0.1 3 0.3
Green products appear to be maintaining their position in the
economy struggle and these natural and organic products
appear to be favorably received by consumers.
0.05 2 0.1
Threats
High unemployment where the increase levels of job insecurity 0.03 4 0.12
The rising of energy prices 0.05 2 0.1
Regulations by U.S Department of Agriculture under the
Standards of the National Organic Program (NOP) which states
that 95% of the products contents must be organic and this
0.07 2 0.14
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regulations also extends to the manufacturing processes.
Aggressive competition by the competitors that are targeting the
same market segment
0.07 3 0.21
Change of Consumers spending pattern of luxury goods 0.03 4 0.12
Competitive pricing of other similar effect or substitute
products
0.05 3 0.15
Internet security threat on its e-commerce application 0.02 4 0.08
Foreign currency fluctuations 0.03 4 0.12
Changes in laws, regulations, and policies 0.05 2 0.1
Total 1 - 2.99

The weight value is the value that represents the level of influence a factor has ranging
from not important/no influence (0.0) to most important or most influential (1.0) and the total
weight value is 1.0. The rate factor represents the rating that indicates how effective the firms
current strategies respond towards the factor. The rating range from 1 being the response is poor,
2 for the response is below average, 3 for the response is above average, and 4 represents the
response is superior. Estee Lauder scored 2.99 on the weighted score which is above average
score of 2.5 and indicates that even though not very well managed and responded upon, Estee
Lauder still is doing considerably good in responding towards all the opportunities and threats
that appears in front of it. Based on the External Factor Evaluation (EFE) there are numbers of
strategies that Estee Lauder can use to efficiently response towards both threats and
opportunities. Most of the proposed strategies are similar with the strategies proposed in the
SWOT strategies.






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6.1 Go Green

One effective strategy to battle out all the changes of regulations and regulations made
regarding the use of harmful chemicals and the use of animal for test subject in the cosmetic
industry is by turning to use natural and organic materials including within the manufacturing
processes of products. The company will undergo if not 100% or maybe at minimum 50%
changes in aspects covering manufacturing all products and the usage of materials and resources
to produce cosmetics products. This changes will greatly costs the company but is the most
effective in fighting off such threats from ever arises again. To do that, the company has over
400 scientists working research and development and based on the companys financial ratio the
company has excess money to spend for the business. From this point of view, the most
beneficial way of spending that excess money is by spending it for processes to turn the company
into a green company which will completely eliminate the threats coming from animals and
natures activists around the world as well as avoid any problems that can arises from regulations
concerning usage of chemicals and animals for the products. There are over 400 scientists can be
utilize to find solutions to produce products that are more nature friendly.

6.2 Cost Leadership Strategy

In this particular industry segment, the competition is relatively stiff and fearsome.
Especially from big companies such as P&G, Colgate-Palmolive, Avon, LOreal, Revlon, and
other companies competing within the same market segment. These competitors has their own
unique capabilities such as huge workforce, brand loyalty, superior advertising strategy, larger
market share, and etcetera but what Estee Lauder can use to fight of all these threats is by being a
cost leader among all the competitors. Estee Lauder can start a on price-based war to compete
against other competitors. Cost leadership strategy will help to retain customers while at the
same time avoid any unwanted changes in buying trends among customers. Also through price
leadership strategy, Estee Lauder can also fight off the threats of competitive pricing done by
other companies that produce similar effects or substitute products such as Wal-Mart which is
popular and renowned by its low price products. Estee Lauder can also battle the high
unemployment where levels of job insecurity among the working population will decrease
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purchasing power. There will be no need for superior purchasing power with the low price
offered by Estee Lauder and everybody will be able to buy the products with little purchasing
power as well as increasing number of sales for the company in the long run.

6.3 Expand Product Offerings

To tackle the opportunities that arise from developing and emerging markets in the next
20 years, Estee Lauder should consider to fully utilize their capabilities in reaching customers by
expanding more and more products to foreign nations. By expanding their products, Estee
Lauder would not just increase market share but can also diminish other significant threats such
as high unemployment rates, pricing competitiveness, and other threats that can ruin the
opportunities for Estee Lauder to move further ahead.The company has consistent brand imagery
around the world using celebrities as endorsers in testimonial advertising for commercials as
well as in magazines. Estee Lauder also has already conquered most of the globe by utilizing 28
brands with over 9000 products and the process to penetrate a new market environment would
not be much of a problem to the company. Additionally, Estee Lauder has its own pricing
strategy which not only offers prestige price for selected market levels but also varied price
range from low range to high range that can be used to target and ease penetration into new
market environment. The reason to expand their products will also accommodate the rising of the
worlds aging population, the rising of womens purchasing power within the next ten years, and
the improving life expectancy of aged populations.










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7.0 STRENGTHS

1. Named one of 10 outstanding Women in Business in the United States which contributed
largely towards the brand-building of the company
2. Estee Lauder has 28 brands and markets over 9000 products worldwide
3. Average annual revenues of more than 7.8 billion
4. Estee Lauder owns manufacturing facilities, research and development facilities, and
businesses offices on nearly every continent on the world. It consists of 13 manufacturing
facilities, 475 scientists working the Research & Development (R&D) facilities, and 43
business offices worldwide.
5. Manufacturing operations are certified by an independent party to conform to the ISO
14001 Standards.
6. Estee Lauder provides customer service and open dialogue on behalf of the company and
its brands offering services and individualized attention to customers via websites, toll-
free phone, and 6 global customer care centers.
7. Estee Lauder was the first major prestige cosmetics firm that offer shopping via internet.
8. Estee Lauder was the first company to offer free samples and gift-with-purchase plans
and still continues those plans up until today
9. Estee Lauder has consistent brand imagery around the world using celebrities as
endorsers in testimonial advertising for commercials on television as well as in
magazines
10. Estee Lauder offers prestige price strategy as well as varied price range for particular
products that come in low range up to high range prices which targeted various levels of
customers to ease penetration towards certain conditions of economy.
11. Sell products to the globe covering over 150 countries worldwide.






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8.0 WEAKNESSES

1. Most of the power of the company is vested on family members
2. The company has no written mission statement
3. Estee Lauder has small number of employees working worldwide than most of its top
competitors in the industry.
4. Estee Lauder has lower revenues and net incomes than its top competitors such as Avon,
P&G, Colgate-Palmolive, and LOreal.
5. Operating income for fragrance segment dropped 43% to 26.3 million.
6. Almost 45% of total sales for Estee Lauder are generated solely from the U.S market
alone.
7. During discount time, most retailers will ask for higher discount.
8. Estee Lauder spends less money on global scale advertising than most of its top
competitors
9. Avon has over 5 million independent sales representative and is the worlds largest direct
seller of personal products primarily cosmetics which is in line with Estee Lauders range
of products.
10. Concentrated on a single international image

9.0 INTERNAL FACTOR EVALUATION

INTERNAL FACTOR EVALUATION
Strengths Weight Rating Weighted
Score
Named one of 10 outstanding Women in Business in the
United States
0.05 4 0.2
Estee Lauder has 28 brands and markets over 9000 products
worldwide
0.08 4 0.32
Average annual revenues of more than 7.8 billion 0.02 3 0.06
Estee Lauder owns manufacturing facilities, research and
development facilities, and businesses offices on nearly every
0.05 3 0.15
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continent on the world.
Manufacturing operations are certified by an independent party
to conform to the ISO 14001 Standards.
0.05 4 0.2
Estee Lauder provides customer service and open dialogue on
behalf of the company and its brands offering services and
individualized attention to customers via websites, toll-free
phone, and 6 global customer care centers.
0.1 4 0.4
Estee Lauder was the first major prestige cosmetics firm that
offer shopping via internet.
0.04 4 0.16
Estee Lauder was the first company to offer free samples and
gift-with-purchase plans and still continues those plans up until
today
0.04 3 0.12
Estee Lauder has consistent brand imagery around the world
using celebrities as endorsers in testimonial advertising for
commercials on television as well as in magazines
0.02 3 0.06
Estee Lauder offers prestige price strategy as well as varied
price range for particular products that come in low range up to
high range prices
0.05 4 0.2
Sell products to the globe covering over 150 countries
worldwide
0.08 4 0.32
Weaknesses
Most of the power of the company is vested on family
members
0.01 2 0.02
The company has no written mission statement 0.01 2 0.02
Estee Lauder has small number of employees working
worldwide than most of its top competitors in the industry.
0.07 1 0.07
Estee Lauder has lower revenues and net incomes than its top
competitors such as Avon, P&G, Colgate-Palmolive, and
LOreal
0.03 2 0.06
Operating income for fragrance segment dropped 43% to 26.3 0.03 2 0.06
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million
Almost 45% of total sales for Estee Lauder are generated
solely from the U.S market alone.
0.03 2 0.06
During discount time, most retailers will ask for higher
discount
0.05 2 0.1
Estee Lauder spends less money on global scale advertising
than most of its top competitors
0.1 1 0.1
Avon has over 5 million independent sales representative and
is the worlds largest direct seller of personal products
primarily cosmetics which is in line with Estee Lauders range
of products.
0.05 1 0.05
Concentrated on a single international image 0.04 1 0.04
Total 1 - 2.77

The weight for each factor represents the significance of the factors that range from low
importance (0.0) to high importance (1.0). In the table above, the higher the weight for the factor,
the more critical the factor is towards success of the company. The ratings range from 4 to 1
where 4 represent major strength, 3 for minor strength, 2 for minor weakness, and 1 for major
weakness. Each company receives a score on each factor and the total score is simply the sum of
individual score for each company. Company that receives higher score is relatively stronger
than its competitor. Estee Lauder scored 2.77 on the weighted score of IFE which is just above
average score that indicates even Estee Lauder is still doing pretty well instead of having several
major weaknesses within the company itself. Through the IFE, Estee Lauder can revise several
advisable strategies recommended and most of these strategies are similar with the SWOT
strategies.

9.1 Expand Product and Market

Operating income for fragrance segment dropped 43% to 26.3 million and at the same
time almost 45% of total sales for Estee Lauder are generated solely from the U.S market alone.
Furthermore, Estee Lauder has lower revenues and net income than its top competitors such as
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Avon, P&G, Colgate-Palmolive, and LOreal. In order to overcome these weaknesses, what
Estee Lauder Should do is to expand its market share as well as expanding its present products to
other market segment which the company has not ventured in yet. Those markets may be in the
existing and developing market or new emerging market where by doing so will help to increase
number of sales for the company which will result in increase revenues and net income. By
expanding the product distributions to other foreign nations, Estee Lauder will also lowers the
risk of losses if the US dollars arise as almost half percent of revenues generated came from the
US market alone. By distributing the percentage of revenues generated, Estee Lauder also at the
same time distributed the risk associated with each particular country or market segment. Estee
Lauder owns over 9000 products under different brands distributed in more than 150 countries
which give the company the edge to penetrate other market with ease. Estee Lauder is also
considerably strong in terms of online presence which will also enhance the companys
capability to penetrate other market on the globe that is separated geographically.

9.2 Diversify Marketing Approach

Another strategy to effectively utilize the strengths of the company to diminish the
weaknesses is by diversifying the companys marketing approach. Estee Lauder has already
acquire a considerably strong brand name around the globe with over 150 countries where its
products are distributed. Additionally, Estee Lauder also pioneered the approach off marketing
that offers its customers free samples and gift-with-purchase plans that still in use until today. To
better accommodate this strategy, Estee Lauder should increase the number of employees
working for the company to enable diversification of marketing approach can be done efficiently.
An example can be seen in P&G company with 127000 workers worldwide which is the top
competitor for Estee Lauder with annual revenues up to 70 billion and net income nearly 20
billion a year. Theoretically the larger the workforce the larger will the revenues be as large
number of workers indicates large number of person actually working the field trying to increase
market share as well as closing sales. Even so, that theory may not be right as Avon with only
100 countries where its products are distributed can also generate a high value of revenues per
annum and managed to be crowned as the world largest direct seller firm. This is a two good
example to be taken as consideration where Estee Lauder has the expenses to do so, and has the
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ability to do so as there are facilities of the company in almost every continent in the world
which will accommodate for the strategy of Estee Lauder to mimic the way Avon do its sales
around the world. Marketing approach can also be diversified by focusing on global scale
advertising and creating numbers of international brand imagery instead of relying to only one
brand imagery.

10.0 FINANCIAL RATIO ANALYSIS

10.1 Profitability

2010 2009
Gross Profit Margin 76.53% 74.31%
Net Profit Margin 6.14% 2.98%
Return on Assets 8.96% 4.22%
Return on Equity 24.34% 13.13%

Based on the profitability ratio, the company has good performance in 2010 compared to
2009 because the GPM, NPM, ROA and ROE has increased from 74.31% - 76.53%, 2.98% -
6.14%, 4.22% - 8.96% and 13.13% - 24.34% respectively. This indicates that the company is
efficient in generating their sales and able to gain profits. Furthermore, they are able to manage
their cost of goods sold. This shows that for year 2010, the company has been performing very
well than the previous year as well as proving the company owns the financial resources to
continue its constituents in the future.

10.2 Liquidity

2010 2009
Current Ratio 1.98 times 1.99 times
Quick Ratio 1.18 times 1.17 times
Inventory to Net Working Capital $1548.8 $1453.3
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The current ratio dropped from 1.99 times to 1.98 times in 2010 but still indicates a value
that is sufficient for the company where the company actually has excess cash that can be used to
spend or invest elsewhere in the business and can also indicates that the company has too many
inventory. Even though the value dropped, the company still has a significantly high value of
ratio that put the company being able to fulfill their short term obligations with short term assets
as well guaranteeing basic matters such as salaries, bills, and expenses on time. The quick ration
shows increase from 1.17 times to 1.18 times in 2010. The value of quick ratio showed in the
table indicates that the firm has enough short-term assets to cover its immediate liabilities
without having to sell any inventories. Lastly the Inventory to Net Working Capital or working
Capital shows increase from 1453.3 million to 1548.8 million in 2010 which indicates that the
company posses the ability to survive in bad times where the downturn may cause significant
impact towards the financial status of the company.

10.3 Leverage

2010 2009
Debt-to-Assets 0.23 0.27
Debt-to-Equity 0.63 0.85

The leverage ratio shows decease in all ratios from 2009 to 2010. The debt to assets ratio
dropped from 0.27 to 0.23 which indicates that the assets of business being financed by debt for
27 % in 2009 had decrease to 23 %. This showed a good sign that the company does not
necessarily rely on debts to finance its assets based on the decrease percentage of assets being
financed by debt from year 2009 to 2010. The debt to equity ratio also dropped from 0.85 to 0.63
which indicates less risk and very favorable for the company. Lower value of debt to equity ratio
indicates that the company does not rely on external lenders that will put it on higher risks
especially in higher interest rates. The value of 0.85 to 0.63 indicates that more and more assets
of the business are financed by the company itself and not by shareholders equity which at the
same time also tells that the percentage of assets of business which are financed by the company
instead of by the debts is increasing.

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10.4 Activity

2010 2009
Inventory turnover margin 2.21 times 2.37 times
Fixed-asset turnover 0.47 0.21
Average collection period 35 days 43 days

The inventory turnover margin showed decrease from 2.37 times to 2.21 times in 2010
which indicates that the company were not so efficient in turning its inventory to generate profit
for the company. However, the fixed asset turnover showed increase from 0.21 to 0.47 in 2010
which indicates that the company was able to fully utilize its assets to increase productivity. The
average collection period also shown increase from 43 days to 35 days which indicates that the
company were being very efficient in collecting credits from debtor. The company needs to draft
a new strategy or methods in order to efficiently turn their inventories into profit in the future.

10.5 Growth

2010 2009
Sales Growth Rate 6.44 % -7.42 %

Average Annual Growth Rate -0.49 %

The sales growth rate foe Estee Lauder shows negative value of 7.42% which indicates
that the company actually incurred decrease in sales in 2009 but the company went back up in
2010 with 6.44 % of sales growth rate that indicates that the sales rate of the company had
increased although not very much. Based on the data provided on growth rate ratio, Estee Lauder
actually is slowly increasing its sales rate from year 2009 to 2010. Even so, the average annual
growth rate of the company did not give promising result as the average annual growth rate for
the company is negative in value. The value of 0.49 % showed that the company is not making
a good progress over the previous year even though the sales growth rate showed otherwise. It
can also be concluded that the increase of sales growth rate did not provide strong impact
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towards its average annual growth rate which can be problematic if not given appropriate
consideration.

11.0 SWOT STRATEGIES

11.1 SO Strategies

11.1.1 Expand Product Offerings to Foreign Nation

To tackle the opportunities that arise from developing and emerging markets in the next
20 years, Estee Lauder should consider to fully utilize their capabilities in reaching customers by
expanding more and more products to foreign nations. There are estimates of 70 million new
market target for the company to set their anchor on and to effectively tackle the target the
company must give their best especially by giving people the brand imagery of the company
itself. The company has consistent brand imagery around the world using celebrities as endorsers
in testimonial advertising for commercials as well as in magazines. It is best to utilizes that
particular strength and start aiming for celebrities particularly from the developing and emerging
markets to start nurturing peoples awareness towards the products that Estee Lauder has to offer
and the benefits they can obtain from buying the products of Estee Lauder. Estee Lauder also has
already conquered most of the globe by utilizing 28 brands with over 9000 products and the
process to penetrate a new market environment would not be much of a problem to the company.
Additionally, Estee Lauder has its own pricing strategy which not only offers prestige price for
selected market levels but also varied price range from low range to high range that can be used
to target and ease penetration into new market environment. Estee Lauder was able to utilize
such pricing strategy is because the company distributes over 9000 products and by having large
number of products to offer benefits the company itself towards the flexibility to adjust prices
than most of its top competitors. The reason to expand their products will also accommodate the
rising of the worlds aging population, the rising of womens purchasing power within the next
ten years, and the improving life expectancy of aged populations.

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11.1.2 Increase capability of online presence in the form of marketing, advertising, and
customer services

Africa is one of the largest continents in the world and in the near future, the continent of
Africa is coming online. This is a really big opportunities for the company to tackle especially
with the company being the first major prestige cosmetics firm that offer shopping via internet.
With the whole continent being online, the company can penetrate the market even deeper and
easier while at the same breaking the geographical and technological barrier that has been
blocking the way of marketers to venture to the continent itself. This is supported by the
company having the ability to provide customer services and open dialogue on behalf of the
company and its brands that can offer services as well as individualized attention to customers
via websites. Besides that, whether it is online shopping or maybe normal ways of shopping its
always a good thing and very interesting when they also have free gift for every purchase of
products. Everybody loves free gifts and Estee Lauder has pioneered the industry and
revolutionized single-handedly on the way of doing business by being the first ever company to
provide free samples and gift-with-purchase plans which is still continues up until this moment.
Having a strong online presence will not only affect the future Africa but also the whole market
industry where information can be sent directly and in a very efficient manner which ease both
sellers and buyers in manners that are favorable for both sides.

11.1.3 Increase Development and Production of New Products

The range of cosmetics products does not just used by aged population but also started
receiving attention from younger population aged 20 to 30 years old. These younger customers
are starting to trend towards spending their purchasing money on cosmetics products to battle the
effects of aging. Additionally even teens are starting to turn their attention towards cosmetics
products to battle the effects of aging. This here is a great opportunity and a requirement for the
company to utilize its 475 scientist working for the research and development to develop specific
products to match the requirements for these younger populations. To strengthen the credibility
of the research and development of new products, manufacturing activities were also certified by
an independent party to conform to the ISO 14001 standards. Continuous effort of research and
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development can also be done to aim for green products based on natural and organic
materials which appear to be maintaining its position as favorable to the consumers even in the
times of economic struggle.

11.2 WO Strategies

11.2.1 Increase Numbers of Employees

Estee Lauder has relatively small number of workers working worldwide than most of its
top competitors such as LOreal, and P&G. For the company to be able to tackle more and more
markets especially developing and emerging markets will technically require large workforce to
work the field. P&G as an example has 127000 workers worldwide working the market field and
theoretically enable them to generate high revenues and net income than its competitors working
the same market industry. Even though the revolution of technology called internet has
significantly changed the world of marketing and successfully put down barriers of geography,
the direct approach method where sellers will personally confront customers proved to be more
effective. Avon is the largest direct selling company mainly in cosmetics in the world applied the
same strategy and managed to generate even larger revenue and net income than Estee Lauder
did even with small amount of countries where they sell their products than that of Estee
Lauders. Therefore, while focusing on strengthening more and more presence of the company in
the online environment, Estee Lauder should increase its workforce and also give appropriate
focus on working the field directly in the future to be able to compete effectively with its
ferocious competitors who from time to time will try to steal market share from Estee Lauder.

11.2.2 Diversify International Image and Global Advertising

Estee Lauder is concentrated on a single international image and it is time to change that
in order to tackle emerging and developing markets in the future. It is unquestionable that with
distribution to over 150 countries worldwide, the name Estee Lauder is not an alien to many ears
but may be a boring view for many eyes already. People get bored easily and sticking with a
single international image will only make it worse. What the company wants is for its products to
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remain prestige for the customers. Especially to existing customers so that the company can
retain brand loyalty therefore requires the company to be much more creative in the way of
sending customers the international image of the company and its products in a way that
represents prestige and excellence without ever make them feel wanting to go for other brand
from other company. To fortify that effort, company must also be prepared to spend significant
amount of money to increase capability of advertising mainly on a global scale. Estee Lauder
still lacks a bit of advertising superiority as they spend quite limited of money to do so which can
also limit the impact of the advertisement towards customers.

11.3 ST Strategies

11.3.1 Go Green

The regulations of U.S Department of Agriculture under the standards of the National
Organic Program states that 95% of the products contents must be organic and these regulations
also extend to the manufacturing processes of products. Changes in regulations also came from
the increasing activities of different groups voicing their objection towards harmful chemical
ingredients and the use of animal as test subjects in cosmetics products which is also a threat to
the company. To battle these threats, the most effective thing to do is by turning the company
into a green company where all its products will be based on natural and organic materials as
well as the manufacturing processes where the processes will evade usage of harmful chemical
ingredients and the use of animal as a test subject in cosmetic products. To do that, the company
has 0ver 400 scientists working research and development and based on the companys financial
ratio the company has excess money to spend for the business. From this point of view, the most
beneficial way of spending that excess money is by spending it for processes to turn the company
into a green company which will completely eliminate the threats coming from animals and
natures activists around the world as well as avoid any problems that can arises from regulations
concerning usage of chemicals and animals for the products. the over 400 scientists can be utilize
to find solutions to produce products that are more nature friendly.


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11.3.2 Introduce Low Cost Structure

In this particular industry segment, the competition is relatively stiff and fearsome.
Especially from big companies such as P&G, Colgate-Palmolive, Avon, LOreal, Revlon, and
other companies competing within the same market segment. These competitors has their own
unique capabilities such as huge workforce, brand loyalty, superior advertising strategy, larger
market share, and etcetera but what Estee Lauder can use to fight of all these threats is its
strengths of having more than 9000 products under various brands distributed to more than 150
countries at its disposal. With huge number of products, the company benefits from the
flexibility to control the prices of each products especially products that can substitute each
other. Estee Lauder can start a low cost structure strategy that focus on price-based war to
compete against other competitors. By introducing a low cost structure, not only can the
company competes effectively in the market but also can battle the changing pattern of buying
among consumers to stay loyal to its products through the low cost structure strategy. By
introducing a low cost structure strategy, Estee Lauder can also fight off the threats of
competitive pricing done by other companies that produce similar effects or substitute products
such as Wal-Mart which is popular and renowned by its low price products. By introducing low
cost structure to the customers, Estee Lauder can also battle the high unemployment where levels
of job insecurity among the working population will decrease purchasing power. There will be
no need for superior purchasing power with the low cost structure and everybody will be able to
buy the products with little purchasing power as well as increasing number of sales for the
company in the long run.

11.4 WT Strategies

11.4.1 New Vision and Mission Statement

To be able to compete effectively against the other big fishes in the cosmetics pool of
industry segment, Estee Lauder should draft a new vision and mission statement with a new
clearer corporate structure. Vision and mission keeps the company from being strayed along the
run. Whereby vision is what the company wants to achieve or where the company wants to be
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within stated period of time. This will keep the company navigated through all obstacles without
losing the way even in the darkest and harshest conditions. At the same time, the company that
had no written mission statement should do so in the future and develop how are they going to
achieve the stated vision and release it to the public. This can help increase public awareness
towards the company itself as well as giving them a little bit of idea of how the company
operates and what the company wants to achieve in the long run.

12.0 GRAND STRATEGY MATRIX























RAPID MARKET GROWTH
STRONG COMPETITIVE WEAK COMPETITIVE

SLOW MARKET GROWTH
Quadrant I Quadrant II
Quadrant III
Quadrant IV
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Based on all the matrices done previously and several strategies also had been
recommended according to the result of those matrices and the strategies are as follows:

1. Market Penetration
2. Market Development
3. Product Development
4. Go Green
5. Cost Leadership Strategy
6. Expand Product Offerings
7. Expand Product and Market
8. Diversify Marketing Approach
9. Expand Product Offerings to Foreign Nation
10. Increase capability of online presence in the form of marketing, advertising, and
customer services
11. Increase Development and Production of New Products
12. Increase Numbers of Employees
13. Diversify International Image and Global Advertising
14. Introduce Low Cost Structure
15. New Vision and Mission Statement
Even though there are 15 overall strategies but all these strategies can be categorized into 1 and
grouped into 3 groups which is market penetration which includes all about increasing market
share as well as diversifying and utilizing greater or more effective marketing efforts, market
development which include all about expanding products to other market segment or other
developing and emerging markets, and product development that includes all about improving
products and developing new products. The groups and its subs are as shown:

Market Penetration
1. Introduce Low Cost Structure
2. Diversify Marketing Approach
3. Cost Leadership Strategy
4. Increase Numbers of Employees
30

5. Increase capability of online presence in the form of marketing, advertising, and customer
services
6. New Vision and Mission Statement
7. Diversify International Image and Global Advertising
Market Development
1. Expand Product Offerings to Foreign Nation
2. Expand Product and Market
3. Expand Product Offerings
Product Development
1. Increase Development and Production of New Products
2. Go Green

All these groups of strategies are categorized into one which is intensive marketing
strategy which is located in Quadrant I of the Grand Strategy Matrix. The intensive marketing
strategy is the most suitable for a highly strong competitive marketing environment and in a
rapid market growth. Therefore the intensive marketing strategy is in the Quadrant I.














31

13.0 QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

Market
Penetration
Market
Development
Product
Development
Key Factors W AS TAS W AS TAS W AS TAS
Strengths
Estee Lauder has 28 brands and
markets over 9000 products worldwide
0.18 4 0.72 0.2 4 0.8 0.12 4 0.48
Estee Lauder provides customer
service and open dialogue on behalf of
the company and its brands offering
services and individualized attention to
customers via websites, toll-free
phone, and 6 global customer care
centers.
0.2 4 0.8 0.18 4 0.72 0.15 3 0.45
Sell products to the globe covering
over 150 countries worldwide
0.14 3 0.42 0.11 3 0.33 0.1 3 0.3
Weaknesses
Estee Lauder spends less money on
global scale advertising than most of
its top competitors
0.17 4 0.68 0.23 4 0.92 0.25 4 1
Estee Lauder has small number of
employees working worldwide than
most of its top competitors in the
industry.
0.2 4 0.8 0.2 4 0.8 0.21 4 0.84
Concentrated on a single international
image
0.11 3 0.33 0.08 2 0.16 0.17 3 0.51
Sum Weight 1 1 1
Opportunities
By the year 2030, Americans over the 0.18 4 0.72 0.04 0 0 0.19 4 0.76
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age of 65 will represent one-fifth of
the population
Life expectancy for the aging
population will continue to improve
0.19 4 0.76 0.22 4 0.88 0.15 4 0.6
By the next 40 years, the worlds
aging population will multiply by 2.5
times representing over 33% of the
total population.
0.22 4 0.88 0.25 4 1 0.18 4 0.72
Threats
Aggressive competition by the
competitors that are targeting the same
market segment
0.2 4 0.8 0.22 4 0.88 0.17 4 0.68
Regulations by U.S Department of
Agriculture under the Standards of the
National Organic Program (NOP)
which states that 95% of the products
contents must be organic and this
regulations also extends to the
manufacturing processes.
0.01 3 0.03 0.07 0 0 0.14 4 0.56
Competitive pricing of other similar
effect or substitute products
0.2 4 0.8 0.2 4 0.8 0.17 4 0.68
Sum Weight 1 1 1
SUM TOTAL ATTRACTIVENESS SCORE 7.74 > 7.29 < 7.58
W= Weight AS= Attractive Score TAS= Total Attractive Score

Attractive Score:
0= Not Relevant
1= Not Acceptable
2= Possibly Acceptable
3= Probably Acceptable
4= Most Acceptable
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Based on the result of QSPM, market penetration shown to have larger value than the
other two strategies with 7.74 beating 7.58 for product development, and 7.29 for market
development. This shows that the best strategy to utilize for Estee Lauder is by using market
penetration as its main strategy to effectively strive in the market as well as competing among
other companies. Market penetration is mainly a strategy for a company to increase its market
share with its present products in its present market through greater marketing efforts. Within the
market penetration strategy consists of several strategies suggested earlier in the matrices done
and all the strategies had been grouped together as these strategies shares common attributes
which is to increase marketing efforts as well as increasing market share in the companys
present market using its present products. As already known, Estee Lauder had already been a
major company with 28 brands and over 9000 products being distributed and marketed in over
150 countries worldwide which is the most countries involved in its operations than its top
competitors in the industry. With over 9000 products marketed, developing new products is
hardly an idea as these 9000 products cover wide variety range of customers with wide variety of
income level, alongside covering wide variety of unique characteristics. Therefore having more
than 9000 for the moment is considered as more than enough to help the company to move
forward. Even though having the most countries involved in its operations, Estee Lauder still
couldnt match the revenues that companies such as Avon whose countries involved were only
100 in total. What the company needs right now is to continue marketing its present products and
strengthening its position within existing market. With huge numbers of market Estee Lauder
already ventured in, the main thing to do is to win the market share over from its competitors and
to do so by using the present products, Estee Lauder will need diversified, creative, innovative,
and effective way of marketing.

The first strategy is by introducing low cost structure to the customers. What driven most
customers is price. Price can bring huge impact towards customers point of view and interest
towards a particular product. Low cost structure can help company to reduce costs relative in
manufacturing and producing products thus will at the same time reduce the products price. By
doing so, company can also benefit by supporting the low cost strategy with a powerful cost
leadership strategy. Being a leader in cost and a leader in range of products as well as variety of
products can definitely contribute towards significant increase of competitive advantage. Estee
34

Lauder has more than 9000 products but not all of them require low cost structure as some of
them can still remain within the prestige price strategy. This strategy is just for introductory
phase where customers are nurtured towards brand loyalty. Cost leadership strategy is a good
strategy when facing formidable competitors such as Avon and P&G. Estee Lauder will initiate a
price war amongst all competitors and pulling them into the axis forcing them to reduce their
prices as well hoping that the reduced price will have significant negative impact towards the
financial status of the competitors that will result in them having to pull away from the market
leaving Estee Lauder with all the market share left behind. This is a long-term strategy that will
took some time for it to take effect but if utilized properly, the wait may be very lucrative.

Another way to increase market share is by increasing the number of employees working
for the company throughout the globe. More workers mean more ground can be covered and thus
more market share can be obtained. The number of employees can represents the capability of
the company in terms of doing job that are more suitable and effective done by humans rather
than done by machines like doing a direct approach sales where personnel will personally
approach potential customers to directly engage in selling activities. Just as done by Avon who is
the largest direct seller firm in the world. How does Avon done it? Of course by utilizing as
much workforce as they can to mobilize sales from a customer to a customer. Meeting a
customer directly and personally can help to build stronger trust of the customer towards the
specific brands of products which at the same time will greatly increase their sense of brand
loyalty because they feel appreciated. Workers can also be mobilize to done customer service
operations where instead of having the customer come to the nearest branch, have the personnel
to personally come to their home and consult the problems directly. A customer that feels
appreciated will never change their loyalty to other brand even if the other brand is much
cheaper. This is exactly a way of doing marketing by utilizing the full capability of human
workforce.

Estee Lauder should also instead of spending money on new development of product or
expanding further to unknown markets with unknown level of risks involved, spend adequate
amount of money on diversifying and upgrading the marketing approach mainly regarding
advertising of products to customers. Marketing approach must be creative and innovative to be
35

able to capture the heart of customers. One interesting method which the founder of the company
uses to revolutionize the cosmetic industry is by giving free samples and gift-with-purchase
plans and up until today this plan is still continuously used to every Estee Lauders customers
worldwide. Marketing approach is not just hiring celebrities and asks them to say that they used
the products to look like how they look. Everybody knows thats a big fat lie. They always wear
makeup before shooting which does not indicates that they used the product for real. Use a far
more effective and money saving method such as maybe doing booth in packed shopping malls,
conducting real life challenges to customers using the products that they will get a significant
results or their money will be given back. This type of marketing may sound old but its a direct
approach and most of the direct approach marketing wins the most heart of customers rather than
televisions, radio, or magazines. Even so, online marketing method should not be forgotten too.
Direct approach may be the best way to initiate sales but there are also significant populations of
customers that do their shopping via internet. This population has the highest probability to
spread the words of positive reviews if the particular products works on the. Usually the spread
of rumors were done in the form of facebook, twitter, and many other social media on the
internet.

14.0 CONCLUSION

Based on all the analysis done through the application of several matrices and
management tools, it can be concluded that the most preferable strategy for Estee Lauder to
utilize for future improvement is the market penetration strategy that involves the company
doing extraneous effort which focus in the company increasing its market share within its
existing market using its present products. The market penetration also highlights the company to
dedicate more efforts towards diversifying its marketing approach in more creative and
innovative way also through its already exist market and present products with no consideration
whatsoever towards expanding its market to foreign or emerging markets, or regarding its
products as well as putting aside ideas to develop new products. Within the market penetration
strategy consists several sub strategies that focus towards increasing the companys market share
as well as concerns about diversifying market approach and strengthening existing approach for
better and efficient utilization.
36

Based on the result from all the analysis showed that the company needed to utilize
market penetration strategy, there is still no confirmation of whether the strategy itself will be
beneficial towards the company. All the analysis done previously is mainly based on intuitive
supported by analytical reasoning to come up with the most preferable strategy to apply. In the
real world, there are no definite strategies that can be guaranteed to provide companies with what
they need in order to survive in the market. All the factors involve in this analysis is just a small
part of huge variety of influential factors that were not included in this analysis that can bring
upon more highly significant impact. To achieve ultimate strategy, companies must be able to
harness all the factors involve in the processes in a more holistic manner which is nearly
impossible to be done in a short period of time. Therefore the answer to what problems Estee
Lauder have particularly in this case analysis can be highly subjective and the utilization of only
these analyses may not be able to fully fulfill the interest of the company itself but its better than
nothing.