Answer to Question #213651 in Marketing for keda

Question

Case Study:

 

L’OREAL: Cosmetics Giants Segment the Global Cosmetics Market- Available at:

 

https://drive.google.com/file/d/1twPLvPed-WSohcd1YPhUq24Kb3vT1oEs/view?usp=sharing

 

Discuss the Political, Economic, Cultural and Technological challenges you envisage that L’Oréal might encounter in entering the international market AND which of those challenges would have the biggest effect on sales. Use references/ citations in explaining those challenges.

 

 

Recommendation:

What Strategic Advice would you give in targeting this particular global segment?

Answer 1

Government, legal, and regulatory issues confront foreign enterprises in the worldwide market on two fronts. China, for example, is a growing economy with a judicial and regulatory institutional system that is comparatively weak and rapidly changing. Regulatory reform is accelerating in a variety of areas, including environmental regulation and pollution control. Besides, related government procedures are often opaque. This means that seemingly routine processes, such as getting permits and product approvals, could become a drain on management resources.

International business has always been concerned with the diverse activities of enterprises on a worldwide scale, where different cultures among groups of people might clash and/or merge together. Although cultural phenomena in the context of national cultural dissimilarities between home and host nations is a major concern in the international market, subnational cultural dissimilarities within countries have received less attention. Intra-national differences can frequently be as substantial as cross-national disparities, given the expanding diversity of a country's workforce. Cultural variations will have an impact on subsidiary hiring and cultural friction in new international marketplaces where multinational corporations have local subsidiaries.

The foreign firm's ability to manage innovation in the global market will be critical. The lack of intellectual property protection will hurt L'OREAL. The organization must work together to achieve a common goal, and worldwide market innovation has the potential to deliver global prosperity (Lewin et al. 2016). The future will be marked by collaboration and cooperation.

HRM has become an increasingly essential topic as the global economy has developed. Foreign capital will bring contemporary HRM to the market, via foreign-owned enterprises (FOEs), joint ventures (JVs), and huge domestic corporations. After several decades of industrialization in most nations, the transitional global employment structure has steadily shifted from capital-oriented to talent-oriented (Kang et al. 2017). For the corporation, increasing diversity will be a struggle. The worldwide labor force's demographic features are shifting. China, for example, is quickly becoming an elderly society. The Chinese fertility rate is 1.6 children per female, significantly lower below the replacement fertility rate.

L'OREAL will be able to adapt to demographic shifts and other market developments with a multi-segment marketing approach. By allowing customers to move up or down across brands and products, a multisegmented approach will help the company weather an economic slump. L'OREAL will be able to cope with concerns related to product life cycles. If one of the company's brands or products is "dying out," it still has others to compete with.

References

Kang, H., Shen, J., & Benson, J. (2017). Not all expatriates are the same: Non-traditional South Korean expatriates in China. The International Journal of Human Resource Management, 28(13), 1842–1865.

Lewin, A. Y., Kenney, M., & Murmann, P. (2016). China’s innovation challenge: Overcoming the middle-income trap. Cambridge: Cambridge University Press.