A recurring pattern that seems to show up again and again in business: expansion is dangerous, and everyone really only learns this through pain.
We’re publishing two cases this week, both taken from the history of skincare conglomerate The Estée Lauder Companies. The first is about the launch of Clinique, whilst the second is about Prescriptives — both the second and third brands Estée Lauder created from scratch, respectively. These two cases are interesting because Clinique and Prescriptives were pretty much brands that laid the foundation for Estée Lauder’s eventual acquisitive strategy, and they are also illuminating because the Lauders made different mistakes with each. The two cases happen to be the first cases for the Branding concept sequence.
I want to highlight something that has stayed with me from the first case, on Clinique. It has to do with the dangers of expansion — something that every businessperson seems to learn ... eventually.
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