Marketing Strategy

EXECUTIVE SUMMARY

Business analysis refers to the discipline of research that deals with the identification of the needs of the business and the determination of the solutions to the problems that may arise in the course of the business. The following report attempts to look into the tools of business analysis and evaluate them on the basis of their appropriateness for the esteemed cosmetic manufacturer, Estee Lauder Inc. in the Australian market. The report deals with the two commonly used tools for business analysis, the SWOT analysis and the PESTEL analysis. The report concludes with the comparison between the two tools and stating the tool that is more appropriate for the concerned company.

Table of Contents

Introduction        3

Discussion        3

SWOT analysis        3

PESTLE analysis        4

Conclusion        5

References        6

Introduction

Business analysis refers to the discipline of research that deals with the identification of the needs of the business and the determination of the solutions to the problems that may arise in the course of the business. There are certain tools that are used to conduct the analysis of a given business. These tools generally refer to the SWOT analysis, PESTLE analysis, the Porter’s Five Forces analysis, Four Square analysis and other such tools. Estee lauder companies is an esteemed American manufacturer and marketer of skincare, hair, fragrance and makeup products (Elcompanies.com, 2017). The company owns a variety of brands that is distributed internationally through ecommerce and retail markets.

Discussion

SWOT analysis

SWOT analysis refers to the method that attempts to evaluate four elements of a business venture, project or an organization. These four factors include the strengths, the weaknesses, the opportunities and the threats that may be faced by the project, organization or the business in discussion (Sayyed, 2013). This type of analysis involves the specification of the objectives of the project or venture. It also involves the identification of the external and the internal factors that are either unfavorable or favorable to the achievement of the objective (Brooks, Heffner & Henderson, 2014). In case of the Estee Lauder group of companies, the strengths of the company include the fact that the products of Clinique, a brand that is marketed by the Estee Lauder companies in Australia, maintain the high quality of the products (Esteelauder.com.au, 2017). The brand may boast of the fact that the products that are manufactured are never tested on the animals. Despite these strengths, the brand faces a backlash because the competitors of the company set the price of their products in the public market at a higher rate thereby making the products of Clinique appear to be of a lower quality than the others in the market (Elcompanies.com, 2017). The external factors include the opportunities and the threats that are faced by the company (Ayub et al, 2013). The products that are marketed by the brand can be availed by the consumers over the ecommerce sites that are operated by company. The customers may avail the delivery of the products at their doorsteps. In spite of these opportunities, the company faces high costs for the maintenance and the starting up of the websites. The customers of the company may become more conscious about their decisions to purchase certain products thereby there may be a decrease in the number of the customers who are served by the company.

PESTLE analysis

The PESTLE analysis is a marketing principle concept that is used as a tool by the concerns that help them track the conditions of the environment in which the company plans to launch a new product, service or project or are currently operating in (Rothaermel, 2015). The PESTLE analysis helps the company to have a bird’s eye view of the concerned environment from a variety of angles. The factors included in the PESTLE analysis include the political factors, the economic factors, the social factors, the technological factors, the legal factors and the environmental factors. In case of the Estee Lauder companies in Australia, the political factors include the safety and the quality issues that may surface in the country where they are operating. The economic factors include the changes in the living standards of the target customers, which in turn lead to the economic development of the country. The personal incomes have also faced an increment. This has also affected the increased pursuit of the advanced products that were targeted at the consumers. The social factors that should be taken care of by Estee Lauder are the provision of the financial aids towards the projects that aim at the health and physical well-being of the children and the women of Australia. The company should also look forward towards providing support to the charitable organizations that aim to assist the people who are affected by cancer. The social factors also help determine the demand for the cosmetic products that are produced and marketed by Estee Lauder. The technological factors that should be taken into consideration by Estee Lauder are the rapid amount of growth in the IT sector and the innovation of the products that the company aims to produce and market. The government is observed to be spending finances on the researches that the cosmetic companies are willing to embark on. The company should focus more on the developments and the discoveries that they aim to achieve in the future. The environmental factors that may affect the growth of Estee Lauder in the Australian market is the shortage of raw material that is needed for the production of the cosmetics that they aim to provide to their customers. The increase in the population of the country may also be a concern for the business of the concerned company in the Australian market. The intervention on the part of the government has increased considerably in the recent years may also prove to be a concern for the esteemed cosmetic manufacturer operating in Australia. The legal factors involved in the case of Estee Lauder companies that are operating in the Australian market refer to the labor laws and the industry relations of the company. The company should abide by the wages laws of Australia (Bismark et al, 2012). The company has to abide by the laws pertaining to the patents and copyrights in order to establish a business in the Australian market. The organization must also follow the schemes related to the municipal licenses and the taxations that are imposed by the legal system of the country in order to continue with their business in the country.