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The Body Shop Essay

9470 words - 38 pages

Strategy Field ProjectThe Body ShopEXECUTIVE SUMMARYToday "The Body Shop" is one of the best and well-known brands available in the Cosmetics industry especially in the natural product category. The company founded in 1976 by Anita Roddick, has presence in 51 countries with 2000 stores worldwide in the year 2004. The company operates in 4 markets; Americas, Europe, Middle East/Africa and Asia.The company is into the industry that is on the verge of maturing though it throws the opportunity to expand the horizon into fast growing markets like Eastern Europe, Brazil and Asia where the purchasing power is increasing rapidly. The company has deep pockets and has a visible brand image that can help it to establish strong presence in these markets.The company uses differentiation strategy with regional self-contained structure for its existing business units in the four markets. The company has come out of bad performance it had showed during late 1990's and has performed well in the year 2004. For consistent performance and growth, the company will have to fill up the gap wherever it exists internally or externally and will have to bring consistency in its operations and should look at integrating vertically.Some of the details are confidential and are not available as the company is publicly listed only in the UK and not in other regions such as USA. Thus, the best effort has been put forth to get the information from various sources. Wherever information was not available to fuller extents, some assumptions was formulated from the available material.Overall, this report is an endeavour to provide the outline of the company's internal and external activities, finding out the factors that can be instrumental in achieving long term and continuous growth, suggesting the strategy to be used to achieve this growth, and finally an action plan to be implemented and recommendations for success.Table of ContentsExecutive Summary iiBackgrounds Information 1Industry and competitive analysis 2Overview of the Industry 2Competitors 3Dominant Economic Features 3Industry stage in the life cycle 4Porter's 5 Forces 4Rivalry Among Existing Incumbents 5Threat of New Entrants 5Substitute Products 6Bargaining Power of Suppliers 6Bargaining Power of Buyers 6Attractiveness of the industry 7Driving Forces and Success Factors 7The Internet 7Globalization 7Change in the Industry Growth Rate 7Regulatory pressures to protect the environment 8Product Innovation 8Public Judgment 8Competitive Positioning 9Industry Key Success Factors 10Value Chain Analysis 11Procurement 11Outbound Logistics 11Marketing 12Sales 12Human Resource Management 13Summary 13SWOT Analysis 13Strengths 13Strong Brand/ Global Name Reorganization 13Support from Head Office 14Leader of Animal Protecting 14Community Trade Program 14Weaknesses 14Deteriorating Image 14Low Wages and Human Rights Issues 15Packaging and Transportation Problems 15Supply chain Issues 15Transparency and Communication 16Pricing 16No...

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