Analysis of Internal and External Environment of BOOTS Company

STRATEGY,
ENTERPRISE AND
INNOVATION

Table of Contents
STRATEGY, ENTERPRISE AND INNOVATION.................................................................1
INTRODUCTION....................................................................................................................3
TASK.........................................................................................................................................3
Analysis of internal environment...........................................................................................3
Analysis of external environment..........................................................................................5
Analysis of competitive forces within the industry................................................................7
CONCLUSION.........................................................................................................................9
REFERENCES.......................................................................................................................10

INTRODUCTION
Innovation strategy support business in forming decisions for achieving desired
organizational objectives, deliver value and build competitive advantage. An innovative
business strategy support business in gaining distinctive advantage, attract external
opportunities and minimize challenges (Innovation strategy, 2016). Such strategies also help
the business in analyzing comparative and technological environment in which they will
operate. BOOTS is a subsidiary company which was started by John Boot in 1849 and is
operating in several industries, such as- beauty, healthcare, pharmaceutical and photography
industry. The parent company of BOOTS is Walgreens BOOTS Alliance. The brand has
more than 2300 stores from local community to large destinations (About Us). BOOTS is one
of the lading giants in UK which is operating in retail industry. This report will outline the
analysis of internal and external business environment of the organization with the help of
various tools and techniques to gain better insight of factors influencing the business
environment. The project will also highlight the competitive forces within the industry which
create an impact on the operations of the company.
TASK
Analysis of internal environment
VRIO ANALYSIS
VRIO analysis is a tool which helps in determining the competitive advantage of an
organization. This framework can support business in turning their competitive advantage
into sustainable competitive advantage. This technique is used to determine the internal
resources and capabilities of an organization that can be a source of sustainable competitive
advantage (VRIO framework, 2021). In the acronyms of VRIO are- valuable, rarity,
imitability and organization. Barney, J. B. outlined four qualities that a firm's resources must
possess in order to become a source of prolonged competitive advantage in his article 'Firm
Resources and Prolonged Competitive Advantage.'
In order to analyze the internal resources and capabilities that enhances competitive
advantage of BOOTS company, VRIO analysis will be used. The VRIO technique in context
of BOOTS company is explained below: