The Body Shop does not face this threat of new competitors because it is the first company to produce beautiful cosmetics products, inspired by nature and ethically made. It is also the first company to be awarded the Humane Cosmetics Standards for the companies against animal testing policy. They have their own fair trade policy program called Community Trade and they are the only cosmetics company with such an extensive commitment to trading fairly.
The company is also a leader in terms of corporate transparency and they have always worked for positive social and environmental change through their five policies; support community trade, defend human rights, against animal testing, activate self-esteem and protect our planet. They also have their own charity program. No company has ever been able to do what body shop has done and they have a, exclusive name in the market. They are growing so fast that no other company can match their pace.
They are a giant and can easily shove of any new competitor since the trust and loyalty is present in their customers. Body shop has taken years to be at this position with a clean reputation that has been proven again and again. It’s not easy to be where Body shop is and it is the Market leader. Thus the company enjoys learning curve advantages. The company has excellent brand equity that has been proven with time. The company also enjoys economies of product differentiation since no company’s products do what they claim. The entire product making process for body shop is transparent and different. Such entry barriers to the market are present to discourage a lot of new entrants (Peteraf MA,1993).
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