Porter 5 Forces Model...about Loreal company...

1. UNIVERSITI TEKNOLOGI MARA MELAKA CITY CAMPUS MGT 657: STRATEGIC MANAGEMENT BY: NOOR AZUREN MOHD TAIB (2009611798) NORAZLINA IBRAHIM (2009688108) AFZA FAKHIRA MD NAJIB (2009454276) AMIRA MOHD ZULKIFLY (2009480838) MUNIRAH MUHAMAD ROSLI (2009169955) BBAM 5A

2. HISTORY OF L’OREAL COMPANY OVERVIEW PORTER 5 FORCES MODEL

3. HISTORY OF L’OREAL Founder: Eugene Schueller Career: Scientist, inventor, young chemist & natural entrepreneur Year founded: 1909 First step: The model takes shape 1909 - 1956 L’oreal on the road to greatness 1957 - 1983 Becoming number one in beauty industry 1984 - 2000 The diversty of beauty throughout the world 2001 - Present day

4. HISTORY OF L’OREAL COMPANY OVERVIEW PORTER 5 FORCES MODEL

5. COMPANY OVERVIEW ABOUT US MISSION THE CEO BRANDS

6. ABOUT US ABOUT US MISSION THE CEO BRANDS At L'Oréal, we have made cosmetics the focus of all our energy and know-how for nearly a century. We are fully committed to putting all our expertise and research resources to work for the well-being of men and women, in all their diversity, around the world. WELCOME TO L’OREAL Products distributed in 130 countries Worldwide leader in cosmetics 23 global brands 5 key expertise: Hair colour, hair care, skincare, makeup & fragrances 66, 600 employees worldwide

7. COMPANY OVERVIEW ABOUT US MISSION THE CEO BRANDS

8. MISSION ABOUT US MISSION THE CEO BRANDS For more than a century L’Oréal has been pushing back the boundaries of science to invent beauty and meet the aspirations of millions of women and men . Its vocation is universal: to offer everyone, all over the world, the best of cosmetics in terms of quality, efficacy and safety, to give everyone access to beauty by offering products in harmony with their needs, culture and expectations. With the opening up of the emerging markets, L’Oréal’s mission is broadening in response to the vast diversity of populations . The whole company is focused on this new horizon: teams enriched by their cultural diversity, a portfolio of international brands present in the different distribution channels, and research that is capable of grasping the world’s complexity. The exploration of new scientific and technological territories is being enriched by this global dimension . Knowledge of different cultures and rituals worldwide enables the laboratories to anticipate and invent the products of the future.

9. COMPANY OVERVIEW ABOUT US MISSION THE CEO BRANDS

10. THE CEO ABOUT US MISSION THE CEO BRANDS JEAN-PAUL AGON

11. COMPANY OVERVIEW ABOUT US MISSION THE CEO BRANDS

12. BRANDS ABOUT US MISSION THE CEO BRANDS CONSUMER PRODUTCS L’OREAL PARIS GARNIER MAYBELLINE NEW YORK PROFESIONAL PRODUTCS L’OREAL PROFESIONAL KERASTASE REDKEN GIORGIO ARMANI LANCOME RALPH LAUREN BIOTHERM DIESEL LUXURY PRODUTCS LUXURY PRODUTCS VICHY

13. HISTORY OF L’OREAL COMPANY OVERVIEW PORTER 5 FORCES MODEL

14. HISTORY OF L’OREAL COMPANY OVERVIEW PORTER 5 FORCES MODEL RIVALRY AMONG COMPETITIVE FIRMS POTENTIAL ENTRY OF NEW COMPETITORS POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCTS BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUYERS

23. Example : VS

24. Example : vs

28. BARGAINING POWER OF CONSUMERS Bargaining Leverage Buyer Volume Buyer Information Brand Identity Price Sensitivity Threat of Backward Integration Buyer Concentration vs. Industry Substitute availability

29. BARGAINING POWER OF CONSUMERS Buyers are POWERFUL if: Buyer are WEAK if: Buyers are concentrated – few buyers with significant market share Producer can take over own distribution/retailing Product is standardized Unique product and buyer cannot easily switch to other product Buyer posses a credible backward integration threat – to buy producing firm or rival Many buyers – has no influence on product or price