Body Shop

Problem statement

Paul has enough information to settle on any smart choice that he would need to make in light of what he might want. Through the time and effort he put into research, Paul has the majority of his certainties laid out. With this company being effective and Paul needing to make a career for himself, should Paul progress toward becoming a franchisee of the Body Shop?

5 forces-

1. Buyers- the body shop has nearly 400 items targeting both men and woman from age group of 14-60.  No of women are higher than men.  Women age group of 35-45 are recognised as the most loyal customer of the company.

In cosmetic industry buyer plays an important role for growth because of heavy competitors in the market like bath and body works, Walmart (great value) and other cosmetics stores.

• In conclusion- bargaining power of buyer is high.

1. Suppliers-  peoples or companies who produces creams lotions or ingredient of cosmetic products are suppliers of cosmetic company play key role in process of purchasing because they want to rise their price which may affect final cost or selling price of product. But shifting to suppliers is easy you can change your suppliers easily without any switching cost.

In some case suppliers has more power like if company sell only natural organic products.

• In conclusion- suppliers have very little power in industry. But on same case they are key element of your company.

1. Substitute- there is not any specific substitute for bath and body products there are some kind of natural ways for bath and moisturizing your skin like massage, milk, curd and alovera plants but these things are running at very low level.

• In conclusion- substitute rate is very low for cosmetic industry 

1. Easy of entry- entry to cosmetic industry is medium your products have to pass the all levels of standard criteria which is universal acceptable. And if you want to purchase a franchise of cosmetic brand you Have to pay fee and have to be in stores more than 40 hours/week in stores.

• In conclusion- entry in cosmetic industry or purchase a cosmetic industry is medium.

1. Competitor-  competition level as cosmetic industry or as retail cosmetic store is very high because of same products targeting same group of market in urban areas like Toronto, Vancouver have high retail competition because all companies opening their stores under same prime location.

• In conclusion- both as company and retail store competition is very high only way to overcome competition is by introduce different kind of product.