PRESENTED BYAvinaba Hazra Saheli Sabui Priyobroto Sharma Saikat Das Saurav Bhattacharya Atanu Das

Boots is the UK's leading health and beauty retailer and has been trading since the 19th century. With around 1,500 stores in the UK and Irish Republic, it serves approximately 12.5m customers every week. Boots develops and sells own brand products, a number of which are leaders in their respective markets. The Boots brand is founded on the trust, expertise and heritage, which comes with its longevity in the market. Boots is best known for selling a wide range of products under the Boots brand name across health and beauty. Within this portfolio, it has the UK's biggest beauty brand in No7, and Soltan, the UK's number one sun-care range. In early 2007, the retailer launched the Boots Expert range; research and development has always been key to Boots, developing new products to improve its own-brands and exclusives ranges.

In 2001 Boots launched the world's first disposable hearing aid, Songbird. Eight per cent of Boots customers visit boots.com before going into the stores. No7 cosmetics have been relaunched six times, most dramatically in 2005 when the entire new range was introduced overnight in all Boots stores. Boots made a significant contribution to the war effort, producing items such as water sterilisers, vermin powder and anti-fly cream for men at the Front. During 2005/2006 Boots sold 0.8 million pairs of spectacles

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 reduced prices on to his customers. His policy of superior goods at competitive prices delivered with expert care meant that the Boots name became synonymous with quality, value and service. His earliest marketing was based around the concept of "Largest, Best and Cheapest - Branches Everywhere". This philosophy is still an important part of Boots' today. It aims to treat its customers fairly and to act with integrity in everything it does, which results in the brand regularly being rated as the UK's most trusted brand. Boots also believes that it has an enormously valuable role to play in promoting the health of the nation. It achieves this by forming innovative, long term partnerships with charities, particularly focusing on women's cancer. Boots has worked with Breast Cancer Care for 11 years, and this year linked with the Eve Appeal to highlight ovarian cancer. Boots also supports the health of the UK everyday through its 15,000 healthcare advisers working in store.

LOOK GOOD, FEEL GOOD TO WELL-BEING

Boots, chemists to the nation, have a clear idea of its business mission by providing extensive range of retail outlets, medicines & attractive health and beauty products.
Though the Boots prime goal is to increase the shareholders wealth and organization is removing 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 at cornerstone. They provide diverse well-being according to the needs of customers: -opticians -dentists -chiropodists -osteopathy

The business has diversed.

-The Boots seeking the opportunity in health service has tried to move from retailing to service sector by providing its customer with variety of specialist services like: opticians, dentists, chiropodists, osteopathy, under Boots brand name. This type of diversification is called Horizontal 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 competitive environment, this form of diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability. In other words, this strategy tends to increase the firm's dependence on certain market segments.

To make the situation analysis of the driving force for the change of Boots business, we should have a clear idea of what is situation

A situation refers to the general position or context that a person or organization is operating within at a specific point in time. A situation refers to the general state of things; or the combination of circumstances occurring at a given time. A situation analysis defines and interprets the state of the environment of a person or organization. A situation analysis provides the context and knowledge for planning. A situation analysis describes an organization's competitive position, operating and financial condition and general state of internal and external affairs. A SWOT analysis is often conducted as a major part of a situation analysis. SWOT is an acronym that refers to strengths, weaknesses, opportunities and threats.

analysis.

STRENGTH OF BOOTS: BOOTS

-brand image -high market share -companys shareholders strategic change -quality product -150yrs of long heritage -after sales service -extensive growth of company

WEAKNESS OF
-improper goal setting -clumsy top-management -improper implementation of

OPPORTUNITY OF BOOTS:
-increase in disposable income of women -increase in awareness regarding health beauty & fitness. -increase of peoples interest for new treatment -anticipation of prospective market in health service

THREAT OF BOOTS
-competitor -new market -brand dilution

Conclusion:
In spite of various threats and weaknesses of company still it wants to grab the opportunity that entering into health related services like-opticians
-dentists -chiropodists -osteopathy

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.

INTERNAL:

RECRUITING NEW EMPLOYEES TRANING NEW EMPLOYEES INTEGRATING NEW & PREVIOUS BUSINESS MAINTAINING DEPATMENTAL HARMONY PROVIDING EQUAL LEVEL OF SERVICE WITH RESPECT TO PREVIOUS STANDARD.

 Though

the company has taken the opportunity in spite of various threats & challenges but unlike Boots success history this change is not successful. The companys anticipation regarding the prospect & growth in new market has failed. The points which elaborates the failure of its new move is fall in market share by 6%. The change of CEO, Steve Russell & expiry of chairman John McGrath indicates the turmoil condition of management. Boots has failed to tackle the competition in new market.

Definition:

A business model describes the rationale of how an organisation creates, delivers, and captures value (economic, social, or other forms of value). The process of business model construction is part of business strategy.
Bricks and clicks business model Collective business models

Business 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 order products online, but lets them pick up their order at a local store.

Business organization or association typically composed of relatively large numbers of businesses, tradespersons or professionals in the same or related fields of endeavor, which pools resources, shares information or provides other benefits for their members

Component business model

Technique 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 depicted on a single page. It can be used to analyze the alignment of enterprise strategy with the organization's capabilities and investments, identify redundant or overlapping business capabilities, etc.

Loyalty business model

The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed. A typical 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.

Franchise

Franchising 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 goods and avoid investment and liability over a chain. The franchisor's success is the success of 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.

AS Boots has failed in the new strategic undertaken , the company should reorganize for the future or upcoming strategy 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 related service. 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 the health related service sector.

The company should extend its business globally i.e. market development. It can also open up online sales.

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

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

The merger between Alliance UniChem plc and Boots Group plc was completed on July 1 2006, creating an international pharmacy-led health and beauty group operating in more than 15 countries across the world. The Alliance Boots network will include two retail formats, both under the Boots brand, ranging from approximately 1,500 smaller dispensing pharmacies to approximately 800 larger destination high street and edge of town health and beauty stores. In addition, Alliance Boots will also operate approximately 300 additional retail outlets, including freestanding Boots Opticians practices. Boots is also developing in-store "health zones" in its bigger stores, which will 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.

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

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