The Body Shop
The Body Shop Value Chain Analysis
Rosa Fernandez
Walden University Introduction 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:
1. Defend human rights
2. Support Community Fair trade
3. Protect the planet
4. Against animal testing
5. 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. 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
Rosa Fernandez
Walden University Introduction 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:
1. Defend human rights
2. Support Community Fair trade
3. Protect the planet
4. Against animal testing
5. 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. 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
References: Porter, M. 1985 (The Competitive Advantage) The Body Shop (2011) Retrieved from: http://www.thebodyshop-usa.com/pdfs/values-campaigns/values_report_2011.pdf