HomeResearch & Knowledgeback to Homeback to Research & KnowledgeGalderma’s coming of ageback to

Case Study

Galderma’s coming of age

By James E. Henderson and Polina Bochukova

17 pages

November 2017

Reference: IMD-7-1694

The case describes a strategic dilemma faced by the management team of Galderma, a 50/50 dermatology joint venture (JV) between Nestlé and L’Oréal, which had been set up in 1981, following Nestlé’s strategic and sizable investment in L’Oréal. The lock-up agreement governing that investment was due to expire on April 24, 2014, triggering the very real possibility of a change not only in Nestlé’s shareholding in L’Oréal but also in Galderma’s ownership structure. Despite both parent companies’ demonstrated commitment to Galderma’s long-term success, after nearly 33 years of joint operations, the time had come when the JV and its shareholders could do better with more freedom. Dissolving the JV would enable its parent companies to pursue their respective growth strategies independently. It would also create wider business potential for Galderma, especially as its recent introduction of new medical aesthetic products, in response to the growing market demand for aesthetic procedures, threatened to overlap with L’Oréal’s core offering. At the same time, with the launch of Nestlé Health Science (NHS) in 2011, helping consumers lead healthier lives in every aspect, beyond nutrition, became central to Nestlé’s corporate strategy. Galderma could evolve along one of the four paths – maintaining the status quo, L’Oréal as corporate parent, Nestlé as corporate parent or finally, Initial public offering.

Learning Objective

Learn about strategic choice in the context of strategic partnerships.
Acquire a framework for making decisions on partnership structure and re-organization given history, evolution, changing market conditions, the visions of both partners and the behaviors of other players in the industry.

Keywords

Strategy, Partnership, Alliance, Joint Venture

Settings

World/global, Switzerland
Galderma, Healthcare, Consumer Goods, Cosmetics and Perfumes
2014

Available Languages

English

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

Assortment optimization presents a complex challenge for retailers, as it depends on numerous decision factors. Changes in assortment can result in demand redistribution with multi-layered consequences. This complexity is even more pronounced for ...

General Management

By Andrey Vasilyev, Sebastian Maier and Ralf W. Seifert

in European Journal of Operational Research

August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Article

The anatomy of family business conflict

Understanding conflict in family businesses is a complex but essential study area for practitioners and academics. To enhance theoretical precision and provide practical insights, this article presents a comprehensive framework of family business ...

Customer Centricity Family Business

By Marco Mismetti, Barbara Del Bosco, Cristina Bettinelli and Alfredo De Massis

in Journal of Family Business Strategy

June 2025, vol. 16, no. 2, 100660, https://doi.org/10.1016/j.jfbs.2025.100660

Article

Boundary conditions for organizations in the Anthropocene: A review of the planetary boundaries framework 10 years on

We systematically review business research concerning the planetary boundaries framework: A natural science framework that identifies nine Earth system boundaries that govern the safe operating space for humanity. Ten years after the introduction ...

Sustainability

By Amanda Williams, Paolo Perego and Gail Whiteman

in Journal of Management Studies

June 2025, vol. 62, no.4, pp. 1811-1846, https://doi.org/10.1111/joms.13150

Article

When it comes to trust, your actions speak louder than words

LeadershipWhen it comes to trust, your actions speak louder than words by Shelley Zalis Published 16 April 2025 in Leadership • 3 min readDownloadSave People don’t work for companies. They work for leaders they trust. And that trust is being teste...

By Shelley Zalis

in I by IMD

Article

Beyond chatbots: Navigating AI’s industrial transformation

AI's true revolution isn't in chatbots but in transforming industrial operations through dark factories and predictive maintenance. This will require leaders to balance technological advancement with responsible societal impact.

in I by IMD

Article

Navigating AI's industrial transformation - Beyond Chatbots

Toby Walsh reminds us that navigating AI's industrial transformation goes beyond chatbots—impacting factories, systems, and society.

Artificial Intelligence

By Toby Walsh

in I by IMD

Article

Well-being at work - Tackling The Crisis

Companies are waking up to the reality that well-being is a business necessity, not a luxury. Take the quiz below to gauge the scale of the problem, and read on to see how your organization can help.

By Andrew Sharman and Susan Goldsworthy

in I by IMD

Article

Stress busters: how to help employees help themselves

Dr. Rachel Lewis explores how empowering teams to co-create solutions can reduce workplace stress and boost wellbeing

By Rachel Lewis

in I by IMD

Article

Your AI-first leadership journey: How NOT to begin

AI-first leadership starts by unlearning old habits. Find out what holds leaders back and how to adapt for the AI age.

By Susanne May

in I by IMD

Article

Riding the duck curve: A strategic guide for companies in the evolving energy landscape

Solar power floods grids with cheap energy, creating both challenges and opportunities. Learn how smart companies can capitalize on the duck curve.

Business Transformation Innovation Sustainability Technology Management

By Robert Earle and Karl Schmedders

in I by IMD

Optimizing omnichannel assortments and inventory provisions under the multichannel attraction model

By Andrey Vasilyev Sebastian Maier and Ralf W. Seifert
in European Journal of Operational Research August 2025, vol. 324, no. 3, pp. 799-813, https://doi.org/10.1016/j.ejor.2025.01.035

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications