In: Operations Management
Answer:
Bodyshop Company’s response for the general environment:
Political and Legal factors: The Body Shop companies develop relationship with the Community Fair Trade suppliers for raw material and ingredient in different countries. The Body Shop faces unstable economic and political environment when foreign market is in the recession period. Under such situation body shop sells its products at the discounted rates so as to survive in the market.
Economic: Increasing cost of raw materials and basic raw ingredients causes the retail price to increase. Body shop companies, under such situation try to achieve economies of scale my manufacturing huge quantity of products and then they apply push marketing technique to sell their products in the market.
Socio-Cultural: The Body Shop consumers may shift to other beauty brand which also offers organic and eco-friendly products. However, Body Shop still retains its loyal customers by offering them with the quality products.
Technology: The Body Shop uses social media marketing to promote brand globally and create awareness and to increase its sales and revenues.
Environmental: Climate change and global warming will affect unstable supplies of raw materials and ingredients. Hence, body shop has diverted its focus from chemically dominated raw material to organically dominated raw materials.
Bodyshop Company’s response for the specific environment:
The Body Shop is exposed to a large amount of influences from its general environment. Different countries have different cultures. Moreover, the customers around the globe are becoming more conscious for the body shop products where they tend to avoid the products that have chemicals as their ingredients and demand for the organic products. To satisfy this demand, the Body Shop products are produce with natural material and ingredients that increases awareness of organic and eco-friendly products. In order to compete with its competitors and to enter into the global market, body shop companies are now using an e-commerce platform to sell their products in various geographic locations. Ageing population has increased in the current market that The Body Shop could target who are willing to spend on products that proves of having an anti ageing properties. The Body Shop faces a huge growing competition within the beauty industry that offers substitute products.