Porter's 5 Forces analysis of Body Shop International Case Analysis

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Porter's 5 Forces analysis of Body Shop International Case Study Help

A Porter's 5 Forces analysis of Body Shop International Case Analysis might be performed to develop different methods utilizing the strengths of the business to obtain chances, conquer weak points and to decrease the dangers. It could also be utilized to evaluate that how particular weaknesses withstand specific chances and increase the threats. The strategies drafted utilizing the Porter's 5 Forces analysis of Body Shop International Case Analysis are offered as follows;
• Usage of strong international brand name position and financial resources in expanding towards prospective markets.
• Unique brand experience could assist the business to better position itself in new markets.
• Resistance in expansion in the possible global markets motivating variety.
• High rates restricts the expansion in numerous Asian and African nations with low per capita earnings.
• Strong brand acknowledgment, non-traditional methods of marketing and the unique brand experience might be used to minimize the threat from prospective clients.
• Stringent appearance policies might caused the consumer shift towards Victoria with high social obligation.
• Restricted target markets could caused a decrease in the overall market share of the business.
These techniques might help the business to improvise its market position and be at the leading position in the market.

Financial Analysis

Monetary analysis for Porter's 5 Forces analysis of Body Shop International Case Help could be carried out to examine the availability of funds to the business that could be made use of in expansion towards international markets. The financial position of the business might be examined by using the information given up the case Exhibition 1. The ratios that might be thought about in monetary performance analysis are given up the Table 1 below;

From the above Table 1, it could be seen that the business has an affordable financial performance with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net profit margin does not appears to be prospective and the business should put efforts in increasing its revenues along with lowering its functional costs to increase its revenue margins.

Porter's 5 Forces analysis of Body Shop International Case Help

Segmentation

The segmentation analysis includes the analysis of different company sectors of the business in domestic and the global, markets. Most of the business's Traditional stores lie in United States including above 500 stores in nearly each of the state of US. However, the business has also an international existence in 8 various countries with its highest variety of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is most likely the 10% of its stores in the United States. It indicates that bulk of the profits of the company come from the regional markets. Additionally, the company is thinking about to broaden its shops into 7 more European and Asian nations. A chart revealing the existence of the business in various worldwide markets is given in the Appendix 2.

Targeting

The company targets its clothes brand to the young, high and attractive teens and kids that are considered to be cool. This targeting policy is responsible for various differences in the company related to its competitors. For instance, the company works with great looking men and women for its shops and follows a strict appearance policy to keep destination of attractive individuals towards its shops and offer an unique brand experience.

Positioning

The business has placed its brand name as a high-end brand name targeting just a specific market section. The company with its non-traditional methods of marketing through models and agents posters its brand name image as a high-end clothes brand name targeted to the cool and good-looking characters in society. This market position attracts different elite people towards the brand however it injures the company's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Body Shop International Case Help faces a lot of competition in the market with the existence of various number of rivals in the market. Gap is also considered to be a possible competitor in local as well as in global; markets as the business is considering to shift in the international markets.

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