The personal care company offers different types and versions of products for different countries, instead of offering one product for everyone. PESTLE analysis is a framework which is imperative for companies such as Maybelline, as it helps to understand market dynamics & improve its business continuously. Developing international strategies. Analyze the Maybelline Category external competitive environment to identify opportunities and threats. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. Often, these legal factors have some overlap with political factors but not always. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. Strengths in the SWOT analysis of Maybelline : Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. In this article, we want to eliminate any confusion surrounding this unique business analysis tool, demonstrating how you too can use it with plenty of examples. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. Aug-22-2018. Cost Based Pricing could be a bad strategy under such conditions. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. New brands and new products are decreasing the market share for every brand. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. please submit your details here. The headquarter of the company is in Manhattan, New York, USA. 754 Words4 Pages. It enjoys tremendous success and a commanding market share, particularly in the eye makeup category. Thank you for your email subscription. Nowadays, people want customized services and even theyre willing to spend extra money for them. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. Thats why brand loyalty is higher among Maybellines customers. The consumers spending patterns are influenced by their purchasing power of money. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Maybelline Inc About Face. But even though the products in this industry are endless, they all focus on selling one specific idea: a better you. Customers accept some trends and leave the others. Some countries offer subsidies for encouraging investment in renewable technologies. Pestle analysis. Below are the economic factors in the PESTLE Analysis of Maybelline: The economic health of the country in which the organization is working significantly affects the financial status of the business. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. You can try searching for PESTLE on our website, or look around the blog yourself for a complete selection of business analysis information including PESTLE and many other techniques. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. Growing economies offer wide-ranging growth opportunities to the Maybelline Inc About Face. This essay firstly introduce L'Oreal and their main operations in recent years, and then emphasize to analysis their external environment, such as P.E.S.T analysis, five forces analysis, sector level analysis and product life cycles analysis. - Securities Law What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. Moreover, considering the development and maturity level of technology in the respective market is also important. A PESTLE analysis studies the key external factors (Political, Economic, Sociological, Technological, Legal and Environmental) that influence an organisation. Maybelline Inc About Face. The basic premise of PESTLE analysis is that you analyze a chosen organization from six different perspectives: Political, Economic, Sociocultural, Technological, Legal, and Environmental. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. There is consistency in both policy making and implementations of those policies. how does that political environment affect the business itself? can leverage the opportunities offered by social media marketing to improve business performance. Entering in countries with high taxation level will directly influence the profitability of Maybelline Inc About Face. Talking about Maybelline, it has been created by L'Oreal to be a Leading Global Mass-Market Cosmetic Brand in its customers mind. However, the company is taking full advantage of its resources. (Ed.). High level of education often results in better jobs, higher income and higher spending on complex and aspirational products. Maybelline should offer customized and personalized services to the customer. As we know that Maybelline is the subsidiary brand of LOreal since 1996. The demand and supply of labor determine the wage rates and supply of skilled workforce. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. 4. Freddie Mac Revenue : Net income $9235 million - FY ending March 2018 (y-o-y growth 64%) $5625million - FY ending March 2017 Competitive Analysis of Freddie Mac SWOT PESTLE - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. - Attitude towards Leisure Maybelline Category should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. The key to getting PESTLE analysis right is understanding what each category stands for. GSTF International Journal on Computing, 1(1), 73-80. The accelerating demand for face care products played an important role for the success of the companys anti-ageing creams and the tissue masks which the company sells under the brand of Garnier. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. The global expansion strategies of the Maybelline Inc About Face. on WhatsApp for any queries. Maybelline Inc About Face. Close collaboration with such groups may enhance the Maybelline Inc About Face.s ability to collaborate with community and achieve long-term corporate goals. Strengths and weaknesses are internal factors and opportunities and threats are external factors. The question is: how does that political environment affect the business itself? Analysis of the competitor's. Market share. Feel free to connect with us if you need business research. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. Legal is the sixth factor of PESTEL analysis. Business do face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary allowed generic AIDS drug irrespective of patents of global companies. LOreal is also the worlds top brand in the cosmetic and beauty products manufacturing company. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Maybelline Inc About Face. Maybelline is the ultimate choice for many women to look beautiful and for protecting their skin. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. Providing a secure work environment for the workforce is the ethical and moral obligation of Maybelline Inc About Face. But they arent much different from the competitors products. Maybelline Inc.: About Face case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. Analyze the Maybelline Category external competitive environment to identify opportunities and threats. At first it was only focused on eye make-up but after it . The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Maybelline Inc.: About Face, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Maybelline Inc.: About Face, SWOT Analysis of Maybelline Inc.: About Face, 5C Marketing Analysis of Maybelline Inc.: About Face, 4P Marketing Analysis of Maybelline Inc.: About Face, Porter Five Forces Analysis and Solution of Maybelline Inc.: About Face, Porter Value Chain Analysis and Solution of Maybelline Inc.: About Face, Case Memo & Recommendation Memo of Maybelline Inc.: About Face, Blue Ocean Analysis and Solution of Maybelline Inc.: About Face, Marketing Strategy and Analysis Maybelline Inc.: About Face, VRIO /VRIN Analysis & Solution of Maybelline Inc.: About Face, PESTEL / STEP / PEST Analysis of Maybelline Inc.: About Face, Case Study Solution of Maybelline Inc.: About Face, SWOT Analysis and Solution of Maybelline Inc.: About Face, GOME Electrical Appliances Holding Limited: The "Tuangou" Challenge PESTEL / PEST / STEP Analysis & Solution, Alliance Grain Traders Inc.: Moving Up the Value Chain (B) PESTEL / PEST / STEP Analysis & Solution, Shoppers Stop - Targeting the Young PESTEL / PEST / STEP Analysis & Solution, Reputation in Online Auctions: The Market for Trust PESTEL / PEST / STEP Analysis & Solution, Ajanta Packaging PESTEL / PEST / STEP Analysis & Solution, Groupon, Spanish Version PESTEL / PEST / STEP Analysis & Solution, Retail Promotional Pricing: When Is a Sale Really a Sale? - Transparency & Digital Drive Maybelline Category can use digitalization of various processes to overcome corruption in the local economy. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Maybelline Category business model. - Corporate Social Responsibilities Culture Are Maybelline Category present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. If the legal system is not strong then Maybelline Category can face numerous challenges from consumer petitions to shakedowns from authorities. The Loreal group has established its presence in 130 countries. should carefully consider the on-going technological innovations to stay ahead of the competition. Ngun gc, tc gi m hnh PEST u nm 1960, m hnh PEST (Political, Economic, Social and Technological analysis) c xy dng v p dng vo thc tin nhm phn tch cc yu t ca mi trng v m trong qun tr chin lc t chc. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. Maybelline has crafted its policies to obtain the raw materials used in production organically. LOreal has been the parent company of Maybelline since 1996. Maybelline is a US personal care, cosmetic, and fragrance US multinational company. Its because of the years of marketing, promotion, and niche-focused products and services of the company to the customers. It has been reviewed & published by the MBA Skool Team. Sustainable business strategies and PESTEL framework. Aside from analyzing countries, you can, of course, analyze businesses with PESTLE analysis. Maybelline Category has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Maybelline Category. and cannot be used for research or reference purposes. European Journal of Innovation Management, 16(3), 285-300. The usage of chemicals, animal testing, substitute products, pandemic of covid-19, economic recession, and new trends are some of the main challenges. Maybelline Inc About Face. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Aithal, P. S. (2017). due to jeopardized public trust on business organizations and overall political and economic structure. - Unrest within the Country & Chances of Civil Unrest We dont think that Maybelline Category business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Maybelline Inc About Face. Loreal acquired Softsheen in order to cater to the African hair market. A detailed analysis of the technological environment can help Maybelline Inc About Face. A., & Gomez, o. Hence, Maybelline Inc About Face. Attitude towards immigration has come under sharp focus. Entering in markets where technological advancement has not reached the maturity means Maybelline Inc About Face. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. Analysis of the Environment/Sector. The owner of these highly successful brands, have often taken to social media to express their dissatisfaction against the dupe culture that is especially prevalent in the beauty industry. Maybelline Category needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. A framework for PEST analysis based on fuzzy decision maps. Honda SWOT Analysis 2023: What Makes Honda Special? Maybelline is one of the top cost-efficient companies in the personal care industry. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Maybelline Inc About Face. Its going to focus on the internal and external factors impacting the worlds leading personal care company. A detailed understanding of the economic environment can help Maybelline Inc About Face. Several new developments like Artificial Intelligence, IoT, Machine Learning, Deep Learning, are being made in the technology field and if a company fails to match up the trend it may lose its position in the market. Maybelline New York is owned by the parent company, L'Oral Group, and is a major player of the colored cosmetic industry worldwide. Service, Dissertation Chat with us Examples of topics that might be discussed in this category include trade laws, labor laws, and intellectual property laws, and how each affects a business. Maybelline Inc About Face. This can help Maybelline Category in numerous decisions such as plant location, product development, and pricing strategy. This article has been researched & authored by the Content & Research Team. Issa, T., Chang, V., & Issa, T. (2010). to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Maybelline has created a perception of the brand as being a stylish, intelligent, and charming personal brand. Businesses are becoming increasingly technological, hence the importance of the T in PESTLE analysis. It. Integrity, Marketing strategy of Maybelline Inc About Face, Marketing Mix Of Maybelline Inc About Face, Maybelline Inc About Face Case Analysis and Case Solution, Maybelline Inc About Face Case Study Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 12398-GOME-Electrical-Appliances-Holding-Limited-The-Tuangou-Challenge, 12399-Alliance-Grain-Traders-Inc-Moving-Up-the-Value-Chain-B, 12400-Shoppers-Stop---Targeting-the-Young, 12401-Reputation-in-Online-Auctions-The-Market-for-Trust, 12403-MicroFridge-The-Concept-Chinese-Version, 12404-Goldieblox-Toy-Company-and-Copyright-Infringement, 12406-Rana-Plaza-Workplace-Safety-in-Bangladesh-A. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. As Maybelline Inc About Face. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Academic writing has no room for errors and mistakes. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. When labor markets are flexible, Maybelline Inc About Face. - Birth Rate Birth rate is also a good indicator of future demand. 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