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Can there be certainty?

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Can there be certainty Evaluate if The Body Shop has a successful growth strategy Introduction This essay will explore how successful The Body Shop is, based on its growth strategy. I will be focusing on the following areas: - where they began, where they operate now, to what extent they have grown, the adopted strategies, the effectiveness of the strategies, and their future plans. There are many methods in which a business can take to achieve more growth, some of these are gained through competitive advantage, economies of scale and economic growth. A company could improve its efficiency by using different production methods i.e. lean production, which is where costs are reduced and quality is improved of a product. Firstly, we will outline the definition of growth strategy, a strategy is a plan for how to produce an objective, it includes the financial, production and personnel resources required (Source: A-Z Economics and Business handbook), A growth strategy refers to an organisational plan that takes into account new global realities such as operating in a new global market place. (Source: www.times100.co.uk). Another definition of growth strategy is that it seeks competitive advantage with strategic moves that are highly interdependent across countries (Source: www.marketingpower.com). For the purpose of the essay, we will go with the second definition. If a business doesn't grow, it can plan for the future, to reduce certainty and increase confidence in decision-making. ...read more.


Franchising has also helped them in entering new markets, as more franchises are being bought in different countries, they are expanding into new markets. From the 1986 save the whale campaign onwards, the company has been against animal testing, and therefore only use natural ingredients in the products they sell, this gives them a competitive advantage and aids them in creating a positive image for the company. By using natural ingredients rather than testing products on animals the company is saving money as if they were to test on animals, they would have to buy the animals and equipment to carry out the tests. (Source: Item 2) In 2003, The Body Shop had given up on a refill programme, as only 1 per cent of Body Shop customers used the service, this shows that The Body Shop has weakness in doing research, as subsequent to dropping the refill programme, they adopted another involving recycled bottles. (Source: Item 3) It can be argued that the ethics of The Body Shop are more important than their profits, as they are selling goods that are costing them more to produce, due to their environmentally friendly image. However, using their environmental friendly image to produce costly goods could be their unique selling point, if they didn't have this image they would be similar to companies such as Boots plc. In 2001, The Body Shop had taken the opportunity of gaining a supply deal with Norfolk Essential Oils, the deal was part of a community trade programme to promote fair trade for farmers worldwide. ...read more.


Increases in Profits and market share have allowed them to spend more on research and development, this has allowed them to produce goods that have taken them into new markets. The Body shop have entered a niche market, this is what makes them different to companies such as Boots and allows them to compete on higher levels. The Body Shop has increased their market share, making it harder on competing companies. Entering so many markets has given the opportunity to operate on many stages, and sell a variety of goods. Their environmentally friendly has given them a competitive advantage, as they have achieved a unique selling point in spending more on the cost of production on products to ensure they are environmentally friendly. For The Body Shop to further their success, they could introduce an award card for customers to save points, which would allow them access to discounts, vouchers and other promotions. They could also uphold their reputation through constant advertising and willingness in offering quality products with natural ingredients. Additionally they could focus on lean production to cut costs and improve the quality of products. In conclusion to this essay The Body Shop has been very successful with its growth strategy. As a company they have realized the opportunities for growth, assessed these opportunities and taken them. They have been successful in entering 50 markets, some of which are niche markets and introducing new goods and services, which have been successfully advertised. In my opinion The Body Shop has been very successful with its growth strategy. ?? ?? ?? ?? ...read more.

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