Analyzing the Body Shops Competitors and Value Chain: A Critical Assessment

The purpose of this paper is to show the strengths and weaknesses of the Body Shop, who are their competitors and how their values chain from raw material to finish good has helped them create a force for good. Core Concepts

According to Michael Porter, the value chain analysis concept is to try to identify what Competitive Advantage a business has over its competitors. The values chain of the Body Shop reflects how they work as a business. Their values are fully integrated into what they do every day.

The following values remain fundamental as when the business started and are also the competitive advantage of the business:

Defend human rights. Support Community. Fair trade .Protect the planet .Against animal testing .Activate self esteem Michael Porter suggested that activities within an organization add value to the service and products that the organization produces, and all these activities should be run at optimum level if the organization is to gain any real competitive advantage.

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Mr. Porter suggested that the organization is split into primary activities and support activities’.

Analysis The strength of the Body Shop is their responsible sourcing using positive engagement approach. They run a community of Fair Trade program that works directly with farmers, and also their ongoing commitment to animals. Their products use natural derived ingredients, wherever possible and are never tested on animals. Body Shop was regarded as one of the first firms in the world to proper report on its social responsibility initiatives. Body Shop marketed products to improve self esteem.

A statement in Body Shop’s website reads, “We will not promise eternal youth, or prey on people’s insecurities, but focus instead on products that provide wellbeing and comfort (The Body Shop 2011).”

The body Shop has more than 2,600 stores in 66 markets, selling more than 1200 products. The Bath and Body Works is one of its competitors which operate more than 1650 stores throughout North America and online shop. Another competitor is Sephora with more than 280 stand stores in North America and over 300 locations in J.C. Penney Department Stores. The Body Shop began with the vision and entrepreneurship of Anita Roddick, and now are part of the leading beauty group in the world, L’Oreal. The weakness of The Body Shop was the acquisition by L’oreal because L’oreal do not have the same values as The Body Shop. A standing for morality and high ethical standards is normally built up over the course of a lifetime and L’oreal bought it with the takeover of the Body Shop.

Conclusion The Body Shop must continue to reinvent itself the way it has been doing for the last years to be appealing to a more sophisticated client base. The Body shop is a company that stands out as a prime example, of how social responsibility can be productively coupled with sound strategies to advance goodwill. As long as they continue their path of social responsibility and having a competitive advantage over their competitors over ethical beauty brand most likely, they will continue growing. The Body Shop is a leader in promoting greater corporate transparency, and they have been a force for positive social and environmental change with their campaigns around their core Values.