The initial and continued success of Estee Lauder can be attributed to the strength of its internal capabilities. These include strong management skills, adequate price product, promotion and placement mix, identifying the right target markets and using the right distribution and placement strategies to reach these markets. However these factors alone do not affect performance. There are several external environmental factors which have affected the performance of the company over the years. These include factors such as competition, changes in laws and regulations and the advent of new technology. When developing a marketing strategy it is essential to examine both the inherent capabilities of the company as well as the external factors influencing the industry and the organization. Smooth implementation of the company’s strategic plans requires that factors in both the internal and external environment factors be closely examined and evaluated using specific analytical tools The internal strength and weaknesses of the organization as well as the opportunities and threats that it faces can be discussed using analytical tools known as the SWOT analysis and the PEST analysis.