After reviewing concepts in class about “Internal Analysis”, I had many lightbulb moments during as I thought of the competitive advantage Estee Lauder sustains. Estee Lauder’s company can be found within the beauty industry. When one thinks of the beauty industry, cosmetics usually only come to mind. However, the industry includes far more than just makeup products such as skin care products which Estee Lauder prides themselves in. The industry breakdown includes $24 billion for skin care, $18 billion for makeup, $38 billion and $15 billion for perfume. The industry continues to grow at up to 7% a year and therefore Estee Lauder made a smart initial decision and found gaps in the industry and utilized the opportunities.
According to the Chief Marketing & Sales Officer Forum (http://cmsoforum.mckinsey.com/article/winning-the-consumer-decision-journey), when consumers make a decision to purchase an item, brand identity is the most important factor that consumers consider when purchasing. Statistics show that 92% focus on the brand and price second. Estee Lauder has established a very reliable brand over the last 50 years. As we learned in class, a brand can either be reliable or quality and in my opinion, Estee Lauder deems both. Their skin care products especially have the utmost quality and are almost all dermatologist recommended. Consumers are willing to spend extra to be assured of receiving a quality product when using it for their face, since it is a very sensitive part of our bodies. Estee Lauder continues to sustain their competitive advantage in the beauty industry.