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CASE FOR ANALYSIS

The Body Shop Gets Middle Aged

The Body Shop, founded in 1976 by Anita Roddick, grew to over

700 stores by 1993 but did not franchise in the United States as

it did in Europe. The owner wanted to maintain control over U.S.

stores.

1. What strategy did the Body Shop use to grow in Europe?

The Body Shop developed natural cosmetics and grew rapidly

throughout Europe using franchising and alliances.

2. What strategy did the Body Shop use in the United States,

and what problems did it encounter?

In the United States, the owner decided to maintain control over

the stores, so the Body Shop missed out on the rapid growth

achieved through franchising. Large U.S. cosmetic companies like

Estee Lauder imitated the Body Shop and had more name

recognition. These competitive threats propelled Roddick to

franchise in the U.S.