SWOT Analysis of Body Shop Store in Canada AcquaSintesiBody Shop International (Body Shop) is a multinational company that mainly produces eco-friendly skin and hair products. Their products are based exclusively on natural ingredients and made according to an ethical code that opposes animal testing. The cosmetics franchise is considered one of the largest in the world with an established reputation in 54 countries. L'Oreal, the dominant company in the beauty industry, acquired Body shop in 2006. Although Body Shop has become a subsidiary of L'Oreal SA, it still acts according to its own policy, values and code of ethics. The acquisition resolved Body Shop's financial problems and provided the means for expansion to a greater market share. Introduction This report will be a SWOT analysis of Body Shop retail outlet in Canada Water. It will mainly focus on: • Strengths, weaknesses, opportunities and threats of the particular outlet. • What was the effect of the acquisition on a particular branch. Results Strengths • Brand Loyalty – Body Shop is highly dependent on brand reputation, which is a critical factor in sales. Thanks to its unique products, it has become one of the most environmentally friendly retailers. • L’Oreal Support – Being a subsidiary of L’Oreal, Body Shop seems to have an increase in sales. Additionally, L'Oreal's expertise in advertising and marketing can boost overall sales. • Niche Marketing: Body Shop targets a niche market. By declaring that it does not test its products on animals and claiming to have an eco-friendly profile, it appealed to customers with ethical questions. Being the only store in the mall that sells eco-friendly products has given it an edge in the local market. • Charitable Support - Body Shop provides financial aid to charities by donating small amounts of money from particular products they sell. The Body Shop's support of local charities and non-profit organizations improves its image in local society. Weaknesses • Slow service: The location of Body Shop, inside a shopping center where it is always crowded, combined with the fact that the staff is inadequate results in slow service for customers. Customers may be discouraged and prefer a store in a central location. Opportunities • Product Development – Body Shop can benefit from L'Oreal's expertise in research methodology and efficiency to improve and develop its existing products.
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