Friday, September 2, 2011

2. Strategic planning for competitive advantage

Estee Lauder Inc. represents the corporate level, while Clinique is a business unit inside Estee Lauder Inc. and represents the business level together with other cosmetic companies that Estee Lauder consists of. Each level has a strategic plan. The Estee Lauder Inc. strategic plan gives directions to Clinique's strategic plan.
Corporate strategic plan
The vision of Estee Lauder Inc. achieved a respectable image and reputation in the cosmetic industry by concentrating on high quality cosmetics, respecting consumer rights and enviromental issues and particapating in social responsibility actions.The main corporate growth strategies that are used are constantly developing new products and expanding globally.
 
Business Strategic plan
Clinique has achieved competitive advantage through product differentiation. The main difference between Clinique and other cosmetic brands is that Clinique emphasizes on laboratory development, dermatologist-recommended products, and mild and hypoallergenic ingredients. This has helped Clinique create a favourable image of a brand that concentrates not only on beauty, but more on healthy and radiant skin. To save this image and reputation of a clean and heath-oriented brand, their sales representatives wear lab coats.Their products are sold in upscale department stores in order to keep their image of a high quality brand. Clinique uses a segmented approach rather than a mass approach.

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