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Environmental Analysis: Bath & Body Works

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Bath & Body Works is a company that operates around 1,700 retail outlets across the United States selling health, beauty and personal care items. In 2002 the company was faced with a problem - how to transform their company from one offering a promotionally priced single brand into a company offering a variety of products with varying prices for all buyers (Born). Bath & Body Works (BBW) enjoyed a successful decade after its inception in 1990. However, over time their limited offering of products was sending their customer base to other retail chains - either trading up to better brands or trading down to cheaper prices. As demand for their product seemed to dwindle, they needed a way to increase their customer base. An increase in …show more content…

Fiske calls the move a "natural evolution" and it arrived just in time for the holidays (Turner). "The operating environment comprises factors that influence a firm 's immediate competitive situation— competitive position, customer profiles, suppliers, creditors, and the labor market" (Pearce & Robinson). BBW can review numerous reports on the labor market and could conduct their own customer surveys and profiles to gain further insight into the environment. A company must always be aware of bias in any reports they consider. Fiske investigated much of the opportunity that exists for BBW when he wrote his book on America 's newfound obsession with affordable luxury - literally. He co-wrote ‘Trading Up ' and coined that term to explain why you now pay $4 for a cup of Starbucks or $4,000 for a Viking range even though you are solidly middle class (Kiviat). While his information may seem biased, company executives can discover what others have successfully done to validate his information. By conducting an environmental analysis of the remote, industry and operating factors, Bath & Body Works can seize the opportunity for success and company growth. References Born, P. (2005). New day dawning. Beauty Biz. May 1, 2005 p 26. Retrieved December 1, 2005 from:

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