Q2. Globalization of L’Oreal
After spreading as a sought after brand in Europe, L’Oreal decided to become global and its first stop was the United States. L’Oreal was indeed good at studying its new market. Soon enough it was competing well with the top local brands in America and the reason for its success was the acquisitions that it underwent in order to grow internationally. The acquisitions of companies such as Maybelline Kiehl’s and Redken acted as the thway for the growth and success of L’Oreal.
The acquisition strategy implemented by L'Oreal guide them to be the world leader company in the beauty industry; all these US acquisition they made created a sub division within their products catalogue, consumer, professional, and luxury, L'Oreal's success is a clear example of how to implement a corporate strategy and manage a brand internationally to achieve a massive growth even when the market they sell their products in isn't very steady, the key was to understand and successfully satisfy the needs of every customer through its products like they did with the Wet Lipstick in Japan, or the Research and Development process they carry out to satisfy the Afro-American customer needs.
L'Oreal has the capacity to reach more people across the world than any other beauty company thanks to their distribution channels and also is able to generate a bigger income rather than other companies due to their big products catalogue. The prospect of increasing profitability and market share by acquisitions continues to exercise a more seductive and immediate appeal to business leaders than a reliance on growth alone
Value creation is the important objective in successful acquisitions. Yet, empirical and other studies continue to highlight the low success rates associated with acquisitions. No matter how attractive is the business opportunity associated with an acquisition