Boots Final

8/3/2019 Boots Final

1/21

PRESENTED BY-Avinaba Hazra

Saheli Sabui

Priyobroto Sharma

Saikat Das

Saurav Bhattacharya

Atanu Das


2/21

Boots is the UK's leading health and beauty retailer and has beentrading since the 19th century. With around 1,500 stores in the UKand Irish Republic, it serves approximately 12.5m customers everyweek.

Boots develops and sells own brand products, a number of which areleaders in their respective markets. The Boots brand is founded onthe trust, expertise and heritage, which comes with its longevity inthe market.

Boots is best known for selling a wide range of products under theBoots brand name across health and beauty. Within this portfolio, ithas the UK's biggest beauty brand in No7, and Soltan, the UK's

number one sun-care range. In early 2007, the retailer launched theBoots Expert range; research and development has always been keyto Boots, developing new products to improve its own-brands andexclusives ranges.


3/21

In 2001 Boots launched the world's first disposable hearing aid,Songbird.

Eight per cent of Boots customers visit boots.com before going intothe stores.

No7 cosmetics have been relaunched six times, most dramatically in

2005 when the entire new range was introduced overnight in allBoots stores.

Boots made a significant contribution to the war effort, producingitems such as water sterilisers, vermin powder and anti-fly cream formen at the Front.

During 2005/2006 Boots sold 0.8 million pairs of spectacles


4/21

Jesse Boot, the son of John Boot, the brand's eponymous founder,took control of the business in the 1870s. He had a business

philosophy of buying in bulk and passing the benefit of reducedprices on to his customers. His policy of superior goods atcompetitive prices delivered with expert care meant that the Bootsname became synonymous with quality, value and service. Hisearliest marketing was based around the concept of "Largest, Bestand Cheapest - Branches Everywhere".

This philosophy is still an important part of Boots' today. It aims totreat its customers fairly and to act with integrity in everything itdoes, which results in the brand regularly being rated as the UK'smost trusted brand.

Boots also believes that it has an enormously valuable role to play inpromoting the health of the nation. It achieves this by forminginnovative, long term partnerships with charities, particularlyfocusing on women's cancer. Boots has worked with Breast CancerCare for 11 years, and this year linked with the Eve Appeal tohighlight ovarian cancer. Boots also supports the health of the UKeveryday through its 15,000 healthcare advisers working in store.


5/21

LOOK GOOD, FEEL GOOD TO WELL-BEINGBoots, chemists to the nation, have a clear idea of its business mission byproviding extensive range of retail outlets, medicines & attractive health andbeauty products.

Though the Boots prime goal is to increase the shareholders wealth and organization isremoving slow-moving items from the stores to free up space like :

Music Videos

Cookware Indeed company is looking for greater margin in profit but due to need of business

growth it demands some strategic changes. Primarily Boots was in retailing, medicine and health & beauty products later they

concentrated mainly in health and beauty products while keeping pharmacy atcornerstone.

They provide diverse well-being according to the needs of customers:-opticians-dentists

-chiropodists-osteopathy


6/21

The business has diversed.

-The Boots seeking the opportunity in health service has tried to move from retailing to servicesector by providing its customer with variety of specialist services like: opticians, dentists,chiropodists, osteopathy, under Boots brand name. This type of diversification is calledHorizontal diversification.

Horizontal diversification The company adds new products or services that are often technologically or commercially

unrelated to current products but that may appeal to current customers. In a competitiveenvironment, this form of diversification is desirable if the present customers are loyal to thecurrent products and if the new products have a good quality and are well promoted andpriced. Moreover, the new products are marketed to the same economic environment as theexisting products, which may lead to rigidity and instability. In other words, this strategy tendsto increase the firm's dependence on certain market segments.


7/21

To make the situation analysis of the driving force for the change ofBoots business, we should have a clear idea ofwhat is situationanalysis.

A situation refers to the general position or context that a person ororganization is operating within at a specific point in time. Asituation refers to the general state of things; or the combination ofcircumstances occurring at a given time.

A situation analysis defines and interprets the state of the environmentof a person or organization. A situation analysis provides thecontext and knowledge for planning. A situation analysis describesan organization's competitive position, operating and financialcondition and general state of internal and external affairs.

A SWOTanalysis is often conducted as a major part of a situationanalysis. SWOT is an acronym that refers to strengths, weaknesses,opportunities and threats.


8/21

STRENGTH OF BOOTS: WEAKNESS OFBOOTS

-brand image -improper goal setting

-high market share -clumsy top-management

-companys shareholders -improper implementation ofstrategic change

-quality product

-150yrs of long heritage-after sales service

-extensive growth of company

OPPORTUNITY OF BOOTS: THREAT OF BOOTS-increase in disposable income of women -competitor

-increase in awareness regarding health -new marketbeauty & fitness. -brand dilution

-increase of peoples interest for new

treatment

-anticipation of prospective market

in health service


9/21

Conclusion:In spite of various threats and weaknesses of

company still it wants to grab the opportunity thatentering into health related services like-

-opticians

-dentists

-chiropodists

-osteopathy


10/21

EXTERNAL : HUGE FINANCIAL INVESTMENT GREAT CHALLENGE TO COPE UP IN NEW MARKET RETENTION OF CUSTOMERS

CREATION OF BRAND IMAGE WITHOUT DILUTION THREAT OF NEW ENTRANTS AND EXISTING

RIVALS. ADJUSTING WITH GOVT. POLICY & LEGAL

PRACTICE.

CONVINCING SHAREHOLDERS. ADOPTING NEW TECHNOLOGY RELATED TO

HEALTH SERVICE.


11/21

INTERNAL: RECRUITING NEW EMPLOYEES

TRANING NEW EMPLOYEES

INTEGRATING NEW & PREVIOUS BUSINESS MAINTAINING DEPATMENTAL HARMONY

PROVIDING EQUAL LEVEL OF SERVICE WITHRESPECT TO PREVIOUS STANDARD.


12/21

Though the company has taken the opportunityin spite of various threats & challenges but unlikeBoots success history this change is notsuccessful.

The companys anticipation regarding theprospect & growth in new market has failed.

The points which elaborates the failure of its newmove is fall in market share by 6%. The change ofCEO, Steve Russell & expiry of chairman John

McGrath indicates the turmoil condition ofmanagement. Boots has failed to tackle thecompetition in new market.


13/21

Definition: A business model describes therationale of how an organisation creates, delivers, andcaptures value (economic, social, or other forms ofvalue). The process of business model construction ispart of business strategy.

Bricks and clicks business modelBusiness model by which a company integrates both offline (bricks) and online(clicks)presences.

One example of the bricks-and-clicks model is when a chain of stores allows the user to orderproducts online, but lets them pick up their order at a local store.

Collective business modelsBusiness organization or association typically composed of relatively large numbers of businesses,

tradespersons or professionals in the same or related fields of endeavor, which poolsresources, shares information or provides other benefits for their members
http://en.wikipedia.org/wiki/Bricks_and_clickshttp://en.wikipedia.org/wiki/Collective_business_systemhttp://en.wikipedia.org/wiki/Collective_business_systemhttp://en.wikipedia.org/wiki/Bricks_and_clicks


14/21

Component business modelTechnique developed by IBM to model and analyze an enterprise. It is a logical

representation or map of business components or "building blocks" and can be depictedon a single page. It can be used to analyze the alignment of enterprise strategy with theorganization's capabilities and investments, identify redundant or overlapping business

capabilities, etc.

Loyalty business modelThe loyalty business model is a business model used in strategic management in whichcompany resources are employed so as to increase the loyalty of customers and otherstakeholders in the expectation that corporate objectives will be met or surpassed. Atypical example of this type of model is: quality of product or service leads to customer

satisfaction, which leads to customer loyalty, which leads to profitability.

FranchiseFranchising is the practice of using another firm's successful business model. For the

franchisor, the franchise is an alternative to building 'chain stores' to distribute goodsand avoid investment and liability over a chain. The franchisor's success is the successof the franchisees. The franchisee is said to have a greater incentive than a direct

employee because he or she has a direct stake in the business.
http://en.wikipedia.org/wiki/Component_business_modelhttp://en.wikipedia.org/wiki/Component_business_model


15/21

AS Boots has failed in the new strategic undertaken , thecompany should reorganize for the future or upcomingstrategy that must bring greater margin in profit.

As the company has a robust capacity of manufacturing , long& positive brand image it can go for merge up or

amalgamation with other prospective organization in relatedservice.

The company can also go for backward integration like:manufacturing its own product & product development .

The company should stay in the market from where it is

getting good return as it has incurred huge investment in thehealth related service sector.


16/21

The company should extend its businessglobally i.e. market development.

It can also open up online sales.


17/21

Merits: Cost effective

Better rate of return

Increase in market share Better quality control

More value addition is possible

Better understanding of market demand

Efficient control


18/21

Demerits: tough to manage the wide product

inconsistency in supply chain

Demands huge capital Required more manpower

Top management must maintain coordination

Promotion is greatly needed

Superior management skill is obligatory


19/21

The merger between Alliance UniChem plc and Boots Group plc wascompleted on July 1 2006, creating an international pharmacy-led health andbeauty group operating in more than 15 countries across the world.

The Alliance Boots network will include two retail formats, both under theBoots brand, ranging from approximately 1,500 smaller dispensing

pharmacies to approximately 800 larger destination high street and edge oftown health and beauty stores. In addition, Alliance Boots will also operateapproximately 300 additional retail outlets, including freestanding BootsOpticians practices.

Boots is also developing in-store "health zones" in its bigger stores, whichwill include extended waiting areas for customers collecting prescriptions.Consultation rooms for pharmacists are also being introduced, as part of a

government initiative to alleviate the pressure on GPs' surgeries.


20/21

www.wikipedia.comwww.investopedia.com

www.quickmba.com

Case study Lecturer: Joanne Cockings
http://www.wikipedia.com/http://www.investopedia.com/http://www.quickmba.com/http://www.quickmba.com/http://www.investopedia.com/http://www.wikipedia.com/


21/21

THANK YOU

Boots Final

Documents