Part One:

Estee Lauder is one of the world’s largest beauty products companies. Recently they
have changed their strategy towards e-commerce and online marketing. The company has
restructured its marketing investment and has reorganized its management to move into this
new direction. Now everyone has the access to the internet in this modern world.
Digitalization and e-commerce have made it easier for people to access anyone from any part
of the world. Digitalization and online marketing are helping countries to increase their
economic growth. New research has stated that digitalization is not only valuable for the
people and companies but also the national economy of any country. Companies are using the
strategies related to e-business and online marketing for increasing their sale but also for
competitive advantage. In this era, online businesses have started gaining popularity because
of the expanded use of the internet and social media. Online marketing has made it very easy
for companies to reach their target customers. Online marketing has also enabled companies
to show their ads only to people who have an interest in buying their products. Thus, e-
commerce and digitalization are playing a vital role in the success of many businesses across
the world.

Strategic management and analysis are very important for achieving organizational
goals. Strategic management helps in formulating short-term goals based on long-term
objectives. The strategic analysis also helps in making quantifiable strategic objectives.
Moreover, the most important role of strategic analysis is played in reflecting on the whole
process (Gartenstein, 2019).

As Estee Lauder has transformed its strategy to online marketing and e-commerce, it
will benefit the company a lot because it’s the need for time. Now every company or brand
had its online stores which makes it easier for people to grab their favorite products. Online
marketing and e-commerce strategy can help the company in achieving its goals, increasing
its sales and profit, reaching more and more customers, and making an online presence.
Moreover, the administration cost will also be lower (Clack, 2020).

This strategy will also help the company in reducing its overall cost. Because having
an online store on different websites does not mean that the physical stores must have all the
products. The company can just make a few physical stores with small spaces and can show
all their products online. Online marketing and e-commerce will also enhance the reaching of
Estee Lauder products all over the world. This means that reaching customers worldwide will

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help Estee Lauder in increasing its revenue because the customers can access their website
and online stores 24/7 (Clack, 2020).

Shifting to online marketing and e-commerce will improve the customer support
service of Estee Lauder. On online stores, it will become easy for Estee Lauder to receive
feedback from the customers. Improved customer service increases credibility which in turn
builds customer trust (Cuc, 2019).

The internal environment of the company will also be affected by the adoption of
online marketing and e-commerce. For an excellent internal e-commerce system, Estee
Lauder will require resource centers for marketing, social and digital marketing, ordering
hubs, training manuals, management of the assets, employee incentive programs, print, and
promotional marketing, and centralized ordering for direct and indirect goods. Customer user
experience is also required for matching with the brand, and customer analytics and reporting
to commute intelligence towards the ongoing strategy (Johnson, 2019).

Online marketing and e-commerce adoption strategy will also change the corporate
culture of the organization by increasing speed and flexibility to do work, more focusing on
data, and taking e-commerce as an opportunity. This strategic adoption will also change the
leadership trends by diverting more attention of the leaders to the collective insights,
monitoring of the social media channels, and desegregating research theories. Moreover, it
will also increase the awareness of digital footprints among the leaders, and the leaders will
always be available. The feature and advantages of online testing will also become visible in
the internal environment of the organization (Partners, 2020).

Part Two:

Due to the current crisis in the whole world, many companies and brands have faced a
huge decline in their offline sales. Covid-19 has impacted the brands a lot in many ways. One
of them was lockdown. The sales that brands can make at crowded malls and airports have to
shut down due to the pandemic. Therefore, brands have to change their strategy for increasing
their sales and profits. Thus, the main reason for the strategic prioritization of Estee Lauder is
the pandemic of covid-19. The brand has decided to move towards online marketing and e-
commerce to expand its sales in the market again (agency, 2020).

The only solution for Estee Lauder to overcome the offline loss was to change its
strategy towards online marketing and e-commerce.

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 Estee Lauder can face threats related to e-commerce strategy if they have weak online
marketing because increasing the growth and sales online marketing strategy matters a lot.
Thus, the focus should be on strong online marketing techniques. The threat can be other
competitors and many online brands.

The Ansoff matrix is a strategic tool that helps businesses in facilitating and guiding
decisions related to business growth. The Ansoff matrix has four strategic choices which are:
Market penetration, market development, product development, and diversification (Collins,
2021). Estee Lauder is a successful brand that has made all its decisions and global operation
according to the strategic growth choices.

Market Penetration The strategy of market penetration helps the

businesses to increase the growth of their
existing products in the market, where their
brands are already operating. The strategy
of e-commerce and online marketing will
help Estee lauder in reaching more
customers. It will increase the production
capacity of the brand. Online marketing and
e-commerce will provide Estee Lauder with
a lot of opportunities to attract more and
more customers. Estee Lauder can also
increase its market penetration by increasing
its investment in activities related to online
advertising and marketing. Moreover,
partnerships and joint ventures with
actresses and celebrities on social media and
leading e-commerce websites will help
Estee Lauder to acquire competitors and
attraction of customers.
Market Development Market development is launching existing
products into the new market. The business
growth of Estee Lauder can be enhanced by
launching existing products on different
leading e-commerce sites. Research and

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 development in the field of online marketing
and e-commerce should also be done by
Estee Lauder to increase its distributing
channels. The strategy of e-commerce will
also allow Estee Lauder to enhance their
distribution by online marketing on different
social media channels and platforms.
Marketing through social media and e-
commerce stores will help Estee Lauder in
regional and international expansion,
discovering new segments of the customers,
and brand awareness.
Product Development Product development strategy is the
production of new products for penetrating
existing markets. Estee lauder can do
modifications to their existing products
before launching them on e-commerce
stores and online.
It can also launch new products by
collaborating with celebrities as they have a
huge fan following on social media.
Diversification Diversification refers to the growth and
diversification of business when the brand
involves itself by introducing new products
into new markets.
The brand can diversify the strategy by
making contracts with leading e-commerce
sites for showing their products on the top
page. Moreover, the brand can also engage
in new businesses on social media to attract
customers.

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References
agency, 2020. cosmeticchinaagency.com. [Online]
Available at: https://cosmeticschinaagency.com/how-estee-lauder-uses-online-marketing-to-
boost-its-offline-sales/
[Accessed 14 1 2022].

Clack, M. B., 2020. https://www.digitalmarketingcommunity.com/articles/importance-of-

ecommerce/. [Online]
Available at: https://www.digitalmarketingcommunity.com/articles/importance-of-
ecommerce/
[Accessed 14 1 2022].

Collins, A., 2021. wwd.com. [Online]

Available at: https://wwd.com/beauty-industry-news/beauty-features/tracey-travis-on-how-
estee-lauder-weathered-the-covid-19-pandemic-and-posted-sales-gains-1235005808/
[Accessed 14 1 2022].

Cuc, A., 2019. thedrum.com. [Online]

Available at: https://www.thedrum.com/industryinsights/2019/02/08/five-advantages-
moving-traditional-online-business
[Accessed 14 1 2022].

Gartenstein, D., 2019. chron.com. [Online]

Available at: https://smallbusiness.chron.com/key-concepts-strategic-management-
organizational-goals-10234.html
[Accessed 14 1 2022].

Johnson, M., 2019. franchise.org. [Online]

Available at: https://www.franchise.org/franchise-information/marketing/what-is-your-
internal-ecommerce-strategy
[Accessed 13 1 2022].

Partners, I., 2020. iicpartners.com. [Online]

Available at: https://iicpartners.com/media-center/the-impact-of-the-growth-in-e-commerce-
on-organizational-culture-and-leadership/
[Accessed 14 1 2022].

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