Glossier’s Growth

CASE NO. 00302 4 MIN READ August 17, 2026

EXHIBIT A

Introduction / Executive Summary

In 2014, Glossier, a beauty and skincare company, launched with a single product, a skin salve called Balm Dotcom, and an Instagram account that would become central to its community-driven, Instagram-first growth model. By leveraging social media and user-generated content, Glossier was able to create a loyal customer base and expand its product line to include a wide range of skincare and beauty products.

Company & Industry Background

Glossier was founded by Emily Weiss, a former fashion assistant at Vogue, who saw an opportunity to create a beauty company that was more inclusive and community-driven than traditional beauty brands. The company is headquartered in New York City and has become known for its minimalist packaging and emphasis on natural ingredients. The beauty and skincare industry is highly competitive, with many established brands and new startups entering the market every year. However, Glossier has been able to differentiate itself through its strong online presence and commitment to customer engagement.

The Business Challenge

One of the main challenges facing Glossier was how to scale its business while maintaining its strong connection with customers. As the company grew, it needed to find ways to continue to engage with customers and build brand loyalty, while also expanding its product line and entering new markets. Glossier’s community-driven growth model was key to addressing this challenge, as it allowed the company to leverage customer feedback and user-generated content to inform product development and marketing efforts.

Analysis

SWOT Analysis

A SWOT analysis of Glossier reveals several strengths, including its strong online presence and commitment to customer engagement. The company’s use of social media and user-generated content has allowed it to build a loyal customer base and create a sense of community around its brand. However, the company also faces several weaknesses, including its limited product line and lack of physical retail presence. In terms of opportunities, Glossier has the potential to expand its product line and enter new markets, both domestically and internationally. However, the company also faces several threats, including increased competition from other beauty and skincare brands and the potential for negative publicity on social media.

Porter’s Five Forces Analysis

A Porter’s Five Forces analysis of the beauty and skincare industry reveals that the industry is highly competitive, with many established brands and new startups entering the market every year. The threat of new entrants is high, as the barriers to entry are relatively low and there are many opportunities for innovation and disruption. The bargaining power of suppliers is moderate, as there are many suppliers of raw materials and packaging, but some suppliers may have more power than others. The bargaining power of buyers is high, as customers have many options and can easily switch to a different brand if they are not satisfied. The threat of substitute products is moderate, as there are many alternative products and services available, but some customers may be loyal to specific brands or products.

Strategic Options Considered

Glossier considered several strategic options as it looked to scale its business and maintain its strong connection with customers. One option was to expand its product line to include a wider range of skincare and beauty products, which would allow the company to appeal to a broader range of customers and increase average order value. Another option was to enter new markets, both domestically and internationally, which would allow the company to reach new customers and increase revenue. A third option was to invest in physical retail, which would allow the company to create immersive brand experiences and build stronger relationships with customers.

What the Company Actually Did / Outcome

Glossier ultimately decided to focus on expanding its product line and entering new markets, while also continuing to invest in its online presence and customer engagement. The company launched several new products, including a line of skincare products and a line of makeup products, which were well-received by customers and helped to drive growth. Glossier also entered several new markets, including the UK and Canada, and expanded its distribution channels to include several major retailers. The company’s strong online presence and commitment to customer engagement continued to be key drivers of growth, as customers shared their experiences and recommendations with others on social media.

Key Takeaways for MBA Students

Glossier’s community-driven growth model is a key factor in its success, as it allows the company to leverage customer feedback and user-generated content to inform product development and marketing efforts.
The company’s strong online presence and commitment to customer engagement are critical to building brand loyalty and driving growth.
Glossier’s ability to expand its product line and enter new markets while maintaining its strong connection with customers is a testament to the company’s focus on customer-centricity and its willingness to innovate and adapt to changing market conditions.

Discussion Questions

How does Glossier’s community-driven growth model contribute to its success, and what are the key factors that drive this model?
What are the advantages and disadvantages of Glossier’s focus on online presence and customer engagement, and how does this approach impact the company’s ability to scale its business?
How does Glossier’s expansion into new markets and product lines impact its brand identity and customer loyalty, and what steps can the company take to maintain its strong connection with customers as it grows and evolves?