The activity of L’Oréal SA is characterized by the sales of products with the help of a flexible pricing strategy allowing to improve the offer. In this respect, the orientation on current market conditions provides the diversity of goods, which positively correlates with the current customer demand. This outcome is achieved through regular examinations of external circumstances by the company’s employees, leading to readjusting efforts for the benefit of the business.
The supply chain strategy developed by L’Oréal SA is described as customer-centric, and it serves as evidence of a well-thought approach implemented in different markets. In this way, a competitive advantage is ensured by establishing the required degree of flexibility when performing regular operations. Moreover, redesigning distribution helps the company increase profits in the long run (see Appendix A). Thus, remaining competitive is possible through timely adopting innovative technological solutions and addressing environmental aspects.
The strategy strengths boosting further growth of L’Oréal SA and guaranteeing its leading position in different markets correspond to the above ideas of flexible innovations. Hence, the business benefits from the particular attention to resilience and agility, data and technology, and sustainability, which are its key priorities. They contribute to an effective supply chain, which incorporates numerous distribution channels used in relation to the products that best suit the considerations of convenience.
The present situation of L’Oréal SA compared to its competitors remains stable; however, there are significant opportunities for further promotion of the manufacturer’s offers. They are readjusting the supply chain to local conditions and different sizes of orders and incorporating social responsibility to avoid complications stemming from public concerns by creating organic cosmetics. These needs are conditional upon the ongoing expansion to foreign markets, such as China, and reorientation on conducting activity in emerging countries.
Appendix A: Financial Statements
