The cosmetics industry is one of the biggest industries in the world. The worldwide annual expenditure for cosmetics is estimated at U.S. $18 billion. There is strong global competition in this industry. To obtain a competitive advantage, companies need to invest a lot. They have to innovate constantly, and invest in advertising campaigns in order to be known and successful. The Body Shop decided to be different. Its products are natural, and it is an ethical organization, associated with environmental friendliness.
How does the Body Shop take part in the cosmetic industry? What are its vision and mission, and what strategic directions should be recommended to the Body Shop in order to perform successfully in this industry?
The cosmetics industry is a very aggressive and challenging market, in order to be more competitive and to gain market shares and customer loyalty, companies such as The Body Shop needs to understand their environment.
[...] We have already discussed the opportunities and threats in the macro environment analysis, which is why we will just evaluate the strengths and weaknesses of The Body Shop (internal environment) here. STRENGHTS WEAKNESSES Global business Lack of new products Ethical business Too slow to get new market share High social responsibility Stores are too old, and need a new design Respect for human rights Unpopularity of the Body Shop in Present all over the world (in 47 the city and in the business countries) community Anti-animal testing practices Lack of enthusiasm Good manufacturing and wholesale Failure in different countries: network such as France and USA. [...]
[...] The external strategic analysis of The Body Shop 1.1 Synopsis of the beauty industry: Macro-environment and trends The PEST model is an interesting tool which enables us to understand and study all the components and trends that affect the beauty industry. This environmental analysis permits us to understand the strategy of beauty brands such as The Body Shop. To identify the importance of each component of the industry, it is necessary to quantify them. In the last column, O will represent “opportunity”, and T will represent “threats”. [...]
[...] Section B Question 3 Vision and Mission A mission statement focuses on current business activities we are and what we The Body Shop is a global business, based on ethics. Its products are known and famous for their naturalness, and because they are not tested on animals. The Body Shop is an organization with strong values and identity. The Body Shop was one of the first organizations which focused on social responsibility and fair trade. The Body Shop offers natural cosmetics and personal care products. [...]
[...] - The Body Shop should not remain on a niche market. The new trends and lifestyles which have emerged, give them extensive opportunities. It should create segmentation for their products. For example, it should have specific products for men and old people. It has to innovate and to adapt to the changes in the market. - The Body Shop is already a global company but it should also strive to be present in other market such as India, which is an emerging market. [...]
[...] Moreover, The Body Shop will have a new strategy to obtain new customers. Gain recognition as a leader in natural products The core competency of The Body Shop is its capacity to create natural products. To gain market share, it should use this element and work on it in order to be recognized as a leader in the natural cosmetics industry. This element will give The Body Shop an excellent and well-known brand image. The Body Shop will have the image of “specific” companies, with strong skills and know-how. [...]
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