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Business Strategy - Loreal

In: Business and Management

Submitted By gmat2014
Words 371
Pages 2
Product: L’Oréal

1. What was the business strategy?

As per the 2015 Global 100 index survey of the Most Sustainable Corporations in the World, L'Oréal stands in the 14th position with an overall sustainability score of 66.80%.
In 2013, they launched a global sustainability program, “Sharing Beauty With All”, through which they aim to win 1 billion new consumers by the end of 2020 and also answer all the diverse beauty needs of men and women around the world.
L’Oréal has also created a framework with four clear commitments to be achieved by the end of 2020 as follows: 1. Innovating Sustainably: The company pledges that 100 percent of products will have an environmental or social benefit. 2. Producing Sustainably: Carbon emissions in absolute terms, as well as water consumption and waste per finished product, will be cut by 60 percent. 3. Living Sustainably: They will help their consumers to make informed and sustainable lifestyle choices by setting up a product assessment tool to measure the environmental and social profile of all new products, and brands will share this information publicly. 4. Developing Sustainably: 100 percent of strategic suppliers will be evaluated on their social and environmental performance.

2. How does sustainability contribute to competitive differentiation?

Sustainability is not only an environmental responsibility but it also includes social, ethical and governance factors like workplace and community relations - in addition to the organization’s impact on the environment. In today’s complex global environment, competitive differentiation is linked to the adoption of social responsible behavior. Companies need to be proactive in their approach if they want to stay ahead in the competition. Sustainability can be one of the USP (“unique selling proposition”) to offer to its stakeholders. Organizations’...

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