The Body Shop Essay

Words: 3874
Pages: 16


Table of Content

I. Executive Summary of The Body Shop

II. Introduction

III. SWOT Analysis of The Body Shop

IV. PEST Analysis of The Body Shop

V. Porter’s Five Forces

VI. EVR Congruence

VII. Recommendation

VIII. Conclusion

IX. References

I. Executive Summary

The Body Shop International PLC (Body Shop) is one of the largest cosmetics companies in the world with 2,400 stores in 61 countries and is the second largest cosmetic franchise in the world, following O Boticario, a Brazilian company. It operates a chain of cosmetic stores specializing in skin and hair care products made from natural
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b) Weaknesses

* Deteriorating image: Over the recent years, the Body Shop products have been seen as trendy and fashionable rather tan green, environment friendly products. This might cause the company to lose market share as the firm’s competitiveness is mainly built upon green marketing framework. The company also constantly maintains that none of its products are tested on animals and that they’re natural. That created a dedicated support among a large customer base. But the Body Shop does use petrochemical-based colours, fragrances and key base ingredients that have all been tested on animals. The competitors often refer to this as “propaganda by Body Shop”.

* Low wages and Human rights: The Body Shop pays its employees low wages and is against trade unions, ensuring that labour costs are kept down and thus preventing its employees to organize to improve their working conditions. The company declared that responsible companies should not deal with governments with poor human rights records. Yet for more than 10 years, The Body Shop has been purchasing baskets from China in huge quantities produced by cheap labour, including during the Tiananmen massacre.

* Pricing: The prices of the Body Shop’s products are usually slightly higher than those of the competitors operating within the industry.

* No specific Product line in Asia: As the company focused on the European market in the past