This 7 page paper considers the opportunities and threats faced by the well known company Estee lauder. The paper undertakes this examination by using Porters Five Forces as a basis, looking at issues such as opportunities and threats posed by new entrants and the existing competition as well as the supply lines, the power of purchases and the role of substitutes. The bibliography cites 5 sources.
Name of Research Paper File: TS14_TEesteel.rtf
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current company has grown with Estee Lauder products being sold in over 120 countries world wide (Estee Lauder, 2003). The company may be a market leader, however there are also
many opportunities and threats within the dynamic markets in which it operates. In considering these the basis of porters five forces may be used. Opportunities Threat of New
Entrants The company has many opportunities. The industry is one which is highly competitive. There are already many competitors within the market. However the current level and concentration of competitors
in the market and their general market strength in terms of distribution channels and marketing may be seen as barriers making it difficult for new companies to enter the market.
When the level of marketing that they would have to compete with is considered this becomes more difficult. The company does not disclose what the advertising or marketing budgets it
uses are, nor does it disclose the financial targets for these campaigns as this is seen as market sensitive information (Born, 2000). However external sources suggest the marketing for this
one product in the first twelve months will be in the region of $30 million with an expected gross retail sales of $100 million (Born, 2000). The main products are
fragrances with Youth Dew as the single most important. The Threat of Current Competitors The industry is one where there are many competitors, that is growing, but only a
few large competitors with the same or similar resources. The position of Estee Lauder is currently of one that is the number one position in the United States, and that
of the second position in Europe in the sector in which it operates. With sales of $4.2 billion in 2000 the company was also a global leader, placed a fifth,
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