MGO403 HW4 <L’Oreal and the Globalization of American Beauty> How did L’Oreal become the world’s largest beauty company? What was the role of acquisitions in the growth? The global strategy of Loreal started first from European countries like Austria, Italy, and the Holland providing hare care and hair color products. After the launch in the USA, they decided to expand their market share by mainly M&A of many similar but way smaller companies. With proper acquisition strategy over the years, they finally became the largest company in beauty industry. L’Oreal offers consumers worldwide “American” and “French” concepts of beauty.
Are there any limits to the national beauty images it can globalize? There may be some limits for Lorear to go more ‘worldwide’ even if they have huge branches and offices over the world. I think it may be related with ‘racial issues’. The society for ‘minority’ is changing faster than ever before, but still, the ‘majority’ of American and European countries are white but Asian, African American, and Hipic. Thus, if they really care about optimal ‘globalization’ in all ways, they should probably consider making their diversified strategy in other markets (minorities)
What are the global opportunities for Kiehl’s? What are the limits, if any? Even though Kiehl’s were taken over by Loreal through M&A, their products are not easily found at many stores, unlike there are so many producsts of Lorean in any store. And this is mainly because their products line are simply expensive targeting luxury market, so I think if they really want to go ‘global’ they should find proper way to make their products easily available to the customers through mega-stores like walmart, or target.
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