Case Analysis of Body Shop

Five forces Threat of saucily(a) entrants Porter said that if the barriers to approach are low then new entrants will be attracted by any rise in industry favorableness (Gordon Pearson, 1999). Applied to the Company, it has been created and certain a niche market heavens for naturally inspired skin and hair care products by introducing the benefits of natural ingredients to personal care products. But the natural ingredients bet to be not the only shopping centre technology of the Company, fancy was copied by other competitors in the years to come wish Bath & be. However, the Company still has retained high shit recognition and gained competitive advantages on the genuine relationship with the long suppliers of raw materials in the third world countries under the visit of Trade Not Aid and the Soapworks Project and on the extraordinary ethic values it promoted. According to Body Shop, firstly, finished 28 years hardship, embody shop established a unshakable image with good reputation by the customers, so for the new entrant it is not easy to build up a strong brand loyalty in short time.

Besides, through advocating fair community trade, body shop formed good relationship with the long-term suppliers of raw materials in the 3rd name countries, which is more like a friendship than a cooperator in business environment and cannot be imitated by new entrants. In addition, body shop share a developed Distribution channel through its own franchise form and appropriate technology of natural ingredients against animal test, all of in a higher place set big barriers for new entrants. On the contrary, the existing products of body shop are becoming more and more homogenous. For the motive that the natural ingredients seem to be not the only core technology of body shop, for instance the big competitors Bath & Body works with huge resource had entered the cosmetic market in the middle of 90th with similar natural cosmetic products. Because of inadequacy of innovation in new product, designing, packing,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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