Essay On Internationalization Path Of Loreal

The internationalization describes to be designed as a product and in a way, it can be readily consumed across the multiple countries. The process or rather the path adopted by an organization looks for expanding their global footprint and also to have a domestic market understanding of the consumers abroad the different tastes or habits. The main purpose of the essay is to achieve the importance of the internationalization path of L’Oreal. Therefore, the paper executes the criteria that initiates the international growth with Uppsala framework of the company. Further, it also extends the importance of brand acquisition and analyse the geographical presence for understanding the mode of entry. Apart from that, the value chain activities have been critically analysed for making a documentation of the current internationalisation strategy and its advantage. Lastly, a conclusion has been included that helps in having the key understanding of the discussion of the facts and information discussed in the paper.

Internationalization process is defined as the process that involves the emphasis of the trajectory of a company and its transition from the national market to a particular foreign market. According to Avdul (2021), the internationalization process of Loreal lies under the perception of the customers and their choice of preferences. The strategies adopted by the company varies and it sold the product on the basis of the demand of the customers. It enhances to keep the product identical across the globe. Further, it can be addressed that to have a concrete analysis of the internationalization as a process, Uppsala framework is appropriate for the readers to have the end results. Daniil (2020) has stated that Uppsala model is one of the best models that helps in setting the internationalization process. The model assumes to be under the lack of knowledge of the foreign market which is detrimental to the internationalization. In consideration to the company, Loreal, it has been observed that the company begins the operation in abroad in nearby market and gradually penetrated the distant market. The company enters the new market with the export agent and the sales subsidiaries. Therefore, it can be stated that the approach can be direct in relation between the market knowledge and market commitment. However, this particular framework has been quite strategic for Loreal as it relies in the practical experience while entering the new market.

 

 
In this paragraph, the growth motivation of the company states that the employees are always felt values and intends to keep them happy. According to Santos (2018), the research states that UK has revealed that the company face in loosing the employees by not willing to recognise and embrace their innovation and ideas. They keep the employees happy by listening to the new ideas and facts. Concerning the discussion, Batra (2019) has opined that attracting and developing talent to build the future of the beauty of the company. It portrays that the role of the human relations always been a support to the growth and transformation with a guiding light. Thus, it can be depicted from analysing two authors that the growth motivation of the company relies on the innovation and keeping the employees happy for meeting the end needs of the customers.

The company has an intention in expanding the market of the UK by adopting the unique style mode of entry and with the epic analysis of the geographical entrance, it can be quite fruitful at the end. In reference to the context, Lahoorpoor and Levisnon (2020) has stated that Loreal has chosen the unique strategy of Universalization for capturing as well as understanding the respect of the difference in the culture of the new market. On the other hand, Susi and Lukason (2020) has stated that the mode of entry adopted by the company for initiating the internationalization process is with FDI and franchising. It enhances to have the license agreement for the organization to enter the foreign market quickly and expand its marketing with a low risk and resource commitment

 

 

Furthermore, the analysis on brand acquisition is reliable and it helps to understand the strategic analysis of the company in a foreign market. With a revenue of 23,854 million euros, it came out that 79.8% of the sales are much greater than what it was in 2020. Thus, expanding the market growth in the foreign market with an analysis of the geographical entrance, it can be quite positive. The strategy adopted by the company is quite different and for initiating the products innovation, it is also distributed as free samples in salons and across the country in increasing the product rate for effective analysis of the brand acquisition.

 

In this section of the discussion, the geographical presence of the country has been quite unique and with time, it has a huge worldwide experience. According to Carneiro (2021), Loreal confirmed that the position of the country has been quite worldwide and with the beauty as a strong presence initiates the places such as in the Western Europe, North America, Asia Pacific’s, Africa, and Middle East. However, the company has intended to make a huge expansion in the United Kingdom as the country is quite passive and innovative for welcoming a unique product in their market. With a specific analysis of population, 67.44 million and with a GDP rate of 2.2 trillion, it can be stated that geographical essence of the new market is quite high for welcoming a new product in the market (Rocha 2021). The brand has or rather made a remarkable performance in the makeup and with change overtime, the revenue chart of the company has been increasing by 4.1% every year. Therefore, it initiates the importance of the company and with several research, it is considered to be one of the largest companies and with the continuous advancement across the decade, the ability to balance between the local audience and intuitive marketing strategies. Further, the global brand with a wide range of products, it can be effective to have a fruitful expansion in foreign markets.

In this section of the discussion, there has been a critical analysis on the primary and secondary value chain activities of Loreal. For instance, the activities that are associated with the part of the value chain and it provides the services to enhance or maintain the value of the products after it has been sold. According to Sine (2022), the marketing and sales of the company (primary value chain activities) has a brand value of 38.3 billion. Globally, the consolidated sales of the company in 2020 was approximately 10 billion euros and if compared to 2021, the sales are 28 billion euros. Concerning the discussion, Jiles (2020) has opined that worldwide revenue of the company is quite generated with the consumer product division and it approximately states to be 12.23 billion euros in revenue. Thus, the primary value chain activities have been changing overtime, the sudden outbreak of covid disrupted the entire financial chart of the company. Therefore, with innovative products and uniqueness, the company has been at the lead again.

 

 

Further, in relation to the secondary value chain activities, it mainly refers to the human resource management, infrastructure and procurement and its changing overtime. Thus, Kaiser (2022) has stated that in 2019, the HR involvement was considered as another function and with an incubator of talent, the developed brilliant minds and its passion for people has been changing. The advice of the HR has been based on the development, talent acquisition, and wellbeing of the people to have a better prospect in the end. On this contrary, Narula (2022) has opined that the procurement and HR development has been quite unique and it is not based on development. Rather, it focuses on the diversity of the functions with the pass by rewards, and with endless possibilities for greater invention in the end.

 

 

In this section of the discussion, the internationalization strategy is defined as the expansion of the new sales, equals more revenue, and for increased sales. Thus, Santos (2018) one of the top advantages of the current internationalization strategy of the company is the entry to new markets and it initializes the business abroad with the potential build in a new customer base. Therefore, the open borders initiates to provide the business of Loreal to be more untapped in the current era. Apart from that, another author has stated that access to local talent finds it hard for expanding abroad and gives an access to the pool of potential workers. Therefore, the increased business growth has initiated the expansion of the business growth with the faster growth and by extending the global footprint, the new audiences make a new change in the overall production of the firm.

 

Furthermore, the importance of the local-global balance is quite strategic and Loreal has mounted the global-local tensions. Thus, the company has deployed the professionals with the multicultural backgrounds in the new product development and the most critical source of the competitive advantage in the end. Apart from that, Figuereido (2018) has stated that the Loreal has managed the main consumer products over time with a sensitivity to the global economies of the scale and scope in the end.

 

 

In reference to this context, the cosmetic industry initiates the importance of Loreal and the potential threats can be the increasing competition. It can have a greater aspect to the other countries as well with a severe economic depression. According to Beardall (2020), the Loreal group can produce the best of the line and with the consumers can find the products for meeting the demands basic demands in the end. Apart from that, the threats to Loreal environment can prevent an expansion in the company. In the cosmetic industry, there is an increase in competition and other countries makes an experience with severe economic depression. Thus, Loreal Group initiates to produce the best of its consumers find their products do not meet their basic demand and prompts them to forego and purchasing Loreal items. Further, the response to the marketing strategies initiates to make the involvement on the internationalization process with brilliant marketing campaigns.  The service for the management of organization has ensured the effective customer service management process and meet the market demand with satisfaction and to mitigate the level of target customers. The threats can be complied for effective celebrity endorsement and enhance the positive sales growth rate in the end.

 

 

In this section of the discussion, I can state that my evidence of collection of data is quite authentic and it uses as the source of evidence in the essay. Thus, my research has been quite effective in the end and while making a chart of the revenue and data sheet, it can be formulated that the entire access of my facts has been easier for the business associates to have a clear understanding and focus on its wellbeing. The potential impact of the evidence of the facts initiates to lead to have the quality of the evidence. For instance, the examining of the different strategy and the theoretical framework of Uppsala has been quite innovative in framing the importance of the universalization and its advancement in the end.

 

 

From the above discussion, it can be concluded that the competitive advantage of the internationalization growth and its motivation in critical understanding of the company with growth motivation, and the expectation to meet the geographical entrance of Loreal with a pattern of universalization and the mode of entry is franchising and FDI. Apart from that, the value chain activities make the primary and the secondary value chain activities for proper analysis in the end. Thus, the current of internationalization strategy adopted by the company is more reliable and it has changed with time by making a great change in the end.

 

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