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International Relations. Internationalization Strategy of "The Body Shop"
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| Submitted Assignment from the year 2017 in the subject Business economics - Miscellaneous, grade: 1,0, University of Applied Sciences Riedlingen, language: English, abstract: This assignments contains a strategic analysis of The Body Shops internationalization.
The Body Shop International Plc has been established in 1976 by Anita Roddick, as the first ethical beauty company to pioneer ¿a new kind of sustainable business.¿ (The Body Shop International Plc., 2015) Within a short period, it became a worldwide successful enterprise. Today, The Body Shop is a leader in the movement for creating an ethic of social responsibility among corporations and is one of the most controversial players within that movement. This essay describes the company¿s development, from opening the first shop, over its internationalization process, up to the acquisition by L¿Oréal.
Therefore, some theoretical background in strategic international management will be explained. With the help of Porters Five Forces, changes within The Body Shops competitive environment will be discussed. By looking at the modes of entering foreign markets, as well as timing strategies, The Body Shops internationalization will be analyzed. Can the OLI-framework answer why the company has engaged in international markets in a certain way?
Especially after entering the U.S. market, the company faced some major challenges. The EPRG model will be applied, to see if those changed the way the company was managed. In 2005 The Body Shop went through a major repositioning, which ended up in the acquisition by L¿Oréal. The latest part of this essay will describe the reasons and analyze the strategic position of The Body Shop before the takeover. |
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