As demand for a product of Estee Lauder rises, the company in turn saves on production costs per unit by producing a greater volume of the product. The external resources are much more difficult for them to control and a vendor that sends them incorrect manufacturing materials can put the company entire product and market development plans behind schedule and over budget.
The company has faced legal suits over anti aging products where they have been accused of false advertising. Estee Lauder currently has 26 brands selling in over countries Global licenses and globalized operations.
Value Creation Customer value as defined by Zeithaml refers to the benefits that customers receive from the use of a product, relative to their cost or Estee Lauder Inc.
S dollar. This means that Estee Lauder is making a commitment by creating conducive working environment. A mission statement is not a broad as the vision and shows the purpose of the company and its goals Coulter, To remain competitive, the company has to be innovative to remain preferable to the consumer by beating competition and ensuring that customers do not rush to the substitutes.
There are high economies of scale required to produce cosmetics in large quantities, hence high capital involved.