Strategic Analysis of the Body Shop International - Research Paper Example

Based on the strategic internal analysis of the resources, capabilities, strengths, and weaknesses of the company and the analysis of the industry and global environments, it is reported that despite the highly competitive nature of the industry the company's performance can be stated to be more than satisfactory. Strategically the company would do well with the continuance of its own store design format and with the reduction of the dependence on the franchising mode of expansion. 1.0 IntroductionWhile 'business strategy' represent the goal of the company to attain sustainable competitive advantage in one of the businesses of the company, 'corporate strategy' represents the objective of the company to manage multi-business activities to create corporate-wide advantage that will benefit each of the business the company owns and operates.

The corporate strategy looks into the opportunities available to the company both internally and externally to enhance its competitive strengths and sustain its sales growth and profitability. A strategic analysis of any company thus includes assessing the strengths and weaknesses of the company on the basis of the internal environment as well as threats and opportunities that the company is subjected to because of its relative positioning in the market and the industry. This report on the Body Shop International Plc reports on the efforts of the company to enhance and to sustain its competitive advantages.1.1 Global Cosmetic Industry - A BackgroundThe cosmetics and Toiletries Industry has registered an all round growth of 5 percent during the year 2006 as against the growth in the year 2005.

This growth is the overall highest growth rate of. The cosmetics and Toiletries Industry has registered an all round growth of 5 percent during the year 2006 as against the growth in the year 2005. This growth is the overall highest growth rate of the industry since the year 2001. The growth of the industry is facilitated by the presence of strong macro economic factors signifying a worldwide increase in the consumer spending power. With the highest growth rate of 13 percent, Eastern Europe, and Latin America were the fastest growing regional markets.

Western Europe accounts for less than 30 percent of the total market with a sales growth of just 3 percent in the year 2006. The sales in the North American region which include the United States Market were above $ 50 billion. The Asia Pacific region also has the characters of a key market with the potential linked to factors like large population, enhanced disposable income, modernized retail and distribution networks and increased consumer awareness – thanks to globalization. On the regional levels, Russia represented the largest market with a sale of $ 8.

5 billion accounting for about 40 percent of the regional sales value. In the analysis of products, skin care products with the sales value of $ 60.1 billion in the year 2006 are the largest segment of all cosmetic and toiletries items which also is the fastest growing product of the industry. The market generally uses the distribution channels like supermarkets/hypermarkets, specialist stores, pharmacies and departmental stores.