In this way the company benefits from acquiring useful information about the real effect of product to different types of persons which could contribute to new product development in the future and increasing of market share.
Using Information to achieve strategic advantages
1. Collect information of natural ingredients to differentiate from competitors
At the outset of Body Shop, Anita started to collect plenty of useful information about the natural ingredients all over the world to develop her new product. Because in many poor communities or extreme climate region, the local persons have no money to buy modern cosmetic products to decorate themselves while remaining charming appearance and healthy body, there should be some traditional remedies and recipes. For instance Anita visited the Polynesian where the skin of residents should be dry up and wrinkle to get cocoa butter made from cocoa pods to retain its natural moisture. (Paul Brown, 1996, Anita Roddick and the Body Shop)
All of above things enable Anita develop various types of the products of Body Shop being differentiated from other similar cosmetic products and to some extend save part of fee in R&D.
2. Using information to communicate with the public to establish customer’s loyalty and build up the brand image and reputation
Like traditional cosmetic company, Body Shop normally uses the various medium such as leaflets, brochures, pamphlets to show its product. But the big difference between the Body Shop and other cosmetic company is that many of the propagandizing of Body Shop is related with environmental and social issues which are the core vale of Body Shop.
Meanwhile Anita has committed herself to campaigning for environmental and social issues such as against animal testing, support women movement. At the same time Body Shop established a cooperation relationship with the international non-profit organization, Greenpeace, in the activity of saving the whale. All the Campaigning and public relationship in fact play the important role of promotions especially in cosmetic industry where the advertising constitutes major part of its cost.
All above communication to the public convinced the consumers the Body Shop really cares about people as well as environmental issue. As Anita Roddick said that “the Body Shop has never been just a shop. It has always been a statement, a way of saying that you are a caring customer.” In this way Body Shop established the loyalty of customers and brand image of company.
3. Using information online to get more market share
As I mentioned in industry analysis, in the mid-1990 many new entrants entered the market which resulted in loss of market share of Body Shop in USA and Canada and Mexico. While Body shop succeeded to regain more market share from internet as the leader of cosmetic industry. Because on internet, The Body shop can know more about the needs of potential customers and also do business with them directly without additional operations fee for setting up a new store. “The revamped site, the Body Shop.com, sells the 750 products available in the stores. Designed by interactive agency AKQA, it replaces the low-watt marketing of 40 or so body butters and other items the site peddled before”.( Body Shop seeks Web rejuvenation). So in this modern information method, Body Shop could keep up the position of the leader in cosmetic industry.
Conclusion
In general, Body Shop developed in the1990s at rapid growth rate from a small store to a well-known international cosmetic company by faith of combining the business philosophy with environmental and social issues. Because of its faith it was run successfully with competitive advantages over other similar company. While due to the changes of cosmetic industry Body Shop met a lot of problems which defied the five competitive advantages.
To sustain the success Body Shop should develop new product and provide one-to-one service to differentiate its production and at the same time use the model of E-Commerce and Direct-Selling to get larger market share.
References
1. Gordon Pearson, 1999, “strategy in action, strategic thinking, understanding and practice.” Published by Financial Times Prentice Hall
2. Paul Brown, 1996, “Anita Roddick and the Body Shop”
3. Mintzberg&Quinn, “The Strategy Process, international edition” published by Prentice, Revised European Edition,1999
4. Michael E. Porter, “Competitive Strategy” with a new introduction published by the Free Press, c1985
4.
http://www.theBody Shop.com
6. “Body Shop seeks Web rejuvenation”, By: Oser, Kris, Advertising Age, 00018899, 9/13/2004, Vol. 75, Issue 37 Oser, Kris, Advertising Age, 00018899, 9/13/2004, Vol. 75, Issue 37