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SWOT matrix

Strength Weaknesses

Internal Factors S1 - High quality W1 – Too many sub-division


S2 – Wide spread distribution – W2 – Severe competition in
International access cosmetics products
S3 – variety of beauty and W3 – Decentralised
cosmetic products organisational structure
External Factors S4 – Endless Research or W4 – Depend on the 3rd party
Innovation sales agent

Opportunity SO Strategies WO Strategies

O1 – Growing demand in S01 – Open a new store and WO1 – Decentralise by


organic products increase productions to meet establishing separate
O2 – Industry expansions customer demand (S2, O1,O2) geographic profit centres
O3 – Global brand recognition (W1,W2,O3)
O4 – More organic products SO2 – Produce more natural
O5 – Further innovation and organic product (S3,O4) WO2 – Distribute high quality
of organic product globally
SO3 – Improve product quality (W2, W3, O2)
of L’Oreal by collaboration with
another global brand such as WO3 – Create a social media
Garnier, Maybelline, Essie, etc platform to attract customers
(W4, O2)

Threat ST strategies WT Strategies

T1 – Dynamic nature of ST1 – Joint venture by separate WT1 – Specialising the


opportunity industry geographic profit centres (S2, products (W1, T1, T4)
T2 – Tricky cash flow T3)
T3 – Cash crunch WT2 – make low profit
T4 – Quick change in consumer ST2 – Positioning the brand products obsolete (W3, T2, T4)
and preferences better through advertisement
and product placement ( S2, WT3 – have long term contract
T1) with distributors (W2, T2)

ST3 – Focus on products


improvements for target group
of teenagers and young women
( S3,T4)