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The Estée Lauder Companies’s Implementation of Economic Efficiency Strategies Through Diversification, Innovation, and Digitalization

Author

Listed:
  • Diana DAVIDESCU

    (National University of Political Studies and Public Administration (SNSPA), Bucharest, Romania)

  • Andrei-Cristian CATRINESCU

    (National University of Political Studies and Public Administration (SNSPA), Bucharest, Romania)

  • Pompei MITITEAN

    (National University of Political Studies and Public Administration (SNSPA), Bucharest, Romania)

  • Oana CHIRICA

    (National University of Political Studies and Public Administration (SNSPA), Bucharest, Romania)

Abstract

This research explores the integration of economic efficiency strategies through diversification, innovation, and digitalization in the global business model of The Estée Lauder Companies Inc., and their impact on financial performance, operational resilience, and competitive advantage. Its main objective is to highlight the relationship between strategic diversification, technological innovation, and sustainable growth in the prestige cosmetics sector, characterized by dynamic market conditions and digital transformation. The originality of the study consists in the integrated approach of the economic, technological, and organizational dimensions of efficiency, applied to a multinational corporation that is navigating the post-pandemic and strategic restructuring period. The method used is qualitative, through the case study regarding The Estée Lauder Companies, based on the detailed examination of financial reports, strategic initiatives, and digital transformation programs published between 2020 and 2025. The analytical tools include the evaluation of indicators regarding financial performance, such as revenues, operating margins, the share of digital sales, and the evolution of the brand portfolio. The analysis reveals fluctuations in revenues between USD 16.22 billion in 2021 (with a peak of USD 17.74 billion in 2022) and USD 14.29 billion in 2025, accompanied by strategic initiatives such as the “Beauty Reimagined” plan, innovation ecosystems based on AI, and the expansion of digital channels to 31% of total sales. The results underline the company’s efforts to transform diversification, innovation, and digitalization into strategic tools for restoring profitability and competitive positioning. The study offers relevant implications for managers, financial professionals, and marketing specialists interested in digital transformation and strategic portfolio management, proposing a framework which is applicable to other industries in similar situations.

Suggested Citation

  • Diana DAVIDESCU & Andrei-Cristian CATRINESCU & Pompei MITITEAN & Oana CHIRICA, 2025. "The Estée Lauder Companies’s Implementation of Economic Efficiency Strategies Through Diversification, Innovation, and Digitalization," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 6(11), pages 14-27, November.
    • Handle: RePEc:ahd:journl:v:6:y:2025:i:11:p:14-27
    DOI: 10.37945/cbr.2025.11.02
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    Keywords

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    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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