The threats that face the Estee Lauder Companies are depicted include the following:
- The company faces extensive and intense competition from other giant conglomerates like Proctor and Gamble and L’Oreal
- Increased competition means faster research and development processes which can compromise the results of the research and tests resulting in negative lawsuits against the company.
- As mentioned above the Estee Lauder Companies provide their products and services in multiple markets throughout the world which makes them vulnerable to exchange rate fluctuations as well as the trade restrictive policies of different regions. These factors can impact the profitability of the business.
The main economic factors which effect the business for Estee Lauder pertain to the disposable income of the customers, their tendency to spend and save as well as the macroeconomic and microeconomic conditions which effect the regional markets. The employment rate of the women in the markets is also of importance as the main clients of the company are women.
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