Corporate Business Report The Boots Company PLC
Corporate Business Report – The Boots Company PLC 1. Introduction The Boots Company, founded in 1888 (www. ... Boots now having two core businesses – Boots The Chemist and Boots Healthcare International. The sales of the company have continuing increased in recent years. As the largest retailer in UK of healthcare part, the company has launched several strategies to expend their business and to maintain its leading status. The report is going to identify its environment and the success factors, the company’s position and strategy, finally, gives recommendations about their strategies and the future implications. ... The key drivers to change Boots is concentrated in the chemist and healthcare sector. As a company, they have to make changes very often so as to follow the changing environment. ... PESTEL model and Porters Five Forces Model is being used to identify Boots’s environmental influences. ... The risk for it to run the business is low. ... As a result Boots should include more healthy medicines. The technology is changing rapidly, and it plays an important role in the business nowadays. Technology can help to run a business very efficiency, it also can help the company collect more business information. The higher the technology level means the business can provide better goods and services, for instance, Boots should improve their online shopping system so as to match the trend. ... ) Competition convergence Competitors are also big factors that affect the business. The main competitors of Boots are big chain supermarkets, for example Tesco who introduced a campaign in 2001 to reduce the prices on baby food and healthcare products. It’s a challenge for Boots to cope with it. ... ) Globalisation Nowadays, the world become more global, if the business wants to have a long-term growth it has to expend its business into new markets. Boots should introduces their brand to overseas so as to expand their business. ... As a result, the company should increase the products for aged population. ... The Critical success factors An industry’s critical success factors concern the product attributes, competencies, competitive capabilities, and market achievement with the greatest direct bearing on company profitability (Thompson&Strickland, 1999). The critical success factors for Boots are as follows: 1. ... Each brand represents the life style and the social standard, it is not just a name of the company. Boots the Chemist gaining 40% of market share in cosmetics and toiletries, which is the highest within its competitors. ... Boots located at high street that gives a convenient shopping purpose. ... Therefore, the store location gained advantage for boots. ... ) Knowledge of merchandising Boots is the specialist of pharmacy industry, it has more knowledge about medicine than other supermarket or department stores. ... Appreciate the role of a company’s resources and capabilities as a basis for formulating strategy (grant, 2002,).