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Growth Strategies Case Study

Case Title:

L`Oreal`s Growth Strategy: The Body Shop Acquisition

Publication Year : 2006

Authors: Abhijt Gupta, Supratim Majumdar

Industry: Electrical Appliances and Personal Care Products


Case Code: GRS0166K

Teaching Note: Not Available

Structured Assignment: Not Available

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The United Kingdom-based The Body Shop International (Body Shop) was a retailer of natural-based cosmetics. L’Oreal, a leading brand in the global market, was a French company dealing with cosmetics and beauty products. This case deals with the proposed acquisition of Body Shop by L’Oreal. It provides brief overview about the two companies and highlights L’Oreal’s growth through acquisitions. It then discusses in details, the company’s recent proposed acquisition. The case also deals with the expected synergies and possible challenges that will result from the acquisition.

Pedagogical Objectives:

  • To understand the global cosmetics industry
  • To discuss the core competence of L’Oreal and Body Shop
  • To analyse the probable synergies of the acquisition.

Keywords :  L'Oreal acquisition of Body Shop; Merger synergies; Cosmetics; Beauty products; Inorganic growth strategy; Ethical business practices; Animal testing; Brand image; Natural-based cosmetics; Anita Roddick; Lindsay Owen-Jones; Dermatology; Growth Strategies Case Study; Personal care products

Contents : 
Company Background
L’oreal’s Growth By Acquisitions
Expected Synergies
L’oreal’s Acquisitions
L’oreal – Financial Figures
The Body Shop – Mission Statement

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