Boots Organization: Porter's 5 Forces Analysis and Value Chain

Business

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Boots organization.......................................................................................................................3
History of company......................................................................................................................3
Porter's 5 Forces Analysis............................................................................................................4
Logistic, operations and outbound logistics.................................................................................7
Two activities in Porter Value Chain ..........................................................................................8
Key value adding activities of company......................................................................................9
Use of innovative ideas and information technology to improve business process ...................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Business is an institute that is established to provide various products and services to
people living in society for earning profit. Boots is a retailer of health and beauty products and
pharmacy chain operating its business in UK and different countries Ireland, Netherlands and
Thailand. Boost company by analysing its internal and external factors of environment is able to
gain competitive advantages in the market. Porter value chain also helps in gaining competitive
advantages by identifying opportunity available in market. This report covers brief introduction
of company and its various operations that helps in gaining competitive advantages in market.
Boots organization
Boots firms was founded 171 years ago in 1849 in Nottingham, United Kingdom by John
Boots and is one of the largest retailer in UK and Ireland. It has 2500 shops across Ireland and
United Kingdom ranging from local pharmacies to large beauty and health shops (Sculos, 2019).
Boot stores are mainly located on high streets and shopping centre to attract large number off
customers. It has 56000 employees in UK and 1900 in Ireland working effectively for
achievement of organisational goals (Boots. 2019. ). It has well-established brand image as more
than 170 years of trusted healthcare heritage and innovation in pharmaceutical wholesaling and
community pharmacy. Since 27 consecutive years, Boost is included in FORTUNE's 2020 list as
world most admired companies. Firms focus is to help customers feel and look better than they
ever possible and is part of retail pharmacy International Division of Walgreens Boots Alliance.
It has various brand such as No7, soap and glory and natural collection for skincare, sultan for
sun-cream and. Boots opticians and boots retail Ireland are different subsidiaries of Boot and it
operates retail websites loyalty card programme known as Boots advantages cars since 1997.
History of company
Jesses Boot at aged of 10 helped her mother in running a family herbal medicine shop in
Nottingham after his father death by establishing Boots in 1849. It was incorporated as Boot and
Co. Ltd in 1883 then Boots pure Drug company Ltd in 1888 (Powers, 2016). Boots was sold to
American United Drug Company in 1920 by Jesse Boot but it again sold back to British hand in
1933 because of deteriorating economic condition. Its name was changed from Boots Pure drug
company to Boots Company Limited in 1971. Boot planned to expand its business by diversified
into manufacturing and diversified of drugs. One of the important research of company was drug

for congestive heart failure in 1980 named Manoplax. Nurofen brand was sold to Reckitt
Benckiser in 2006 and then it expands its business into Canada by purchasing Tamblyn drugs
chain in 1978. Further it planned to expand its business by bringing bicycle and cars parts as
brand name Halford's in 1991 but it was sold in 2002 (Halliburton, 2018). Boots Opticians Ltd
became second largest retail optics chain in UK by acquisition of Curry and Paxton Ltd and
Clement Clarke Ltd. It further diversified its business into dentistry in 1998 having large
numbers of shops providing this services. It also ventures into Well-being services providing
various services to customers such as homoeopathy and nutrition advice to laser eye surgery. It
was announced that Walgreens would purchase 45% stake in Alliance boots for US$ 6.7 billion.
Thus, it will helps in expansion of both brand in UK and china market and in 2014 Walgreens
Boots Alliance purchase remaining 55% and form new holdings (Boots, 2018). Company is
planning to close 200+ underperforming shops as per 2019.
Products and services: Boots sells wide varieties of products and services to customer for
maximizing profit and market share. It deals in health and beauty products and related electric
products, food and drink, prescription and non-prescription medicines. Firms also provides
photography services but now also provide kiosk printing services due to shift from film to
digital photography. Opticians and healthcare are another products and services in which
company deals.
Porter's 5 Forces Analysis
Competitive environment is defined by the level of competition in the market. It is
associated with external business environment factor that denote the amount of competition
available for the business organization in the same market sector associated with the
organization. To assess the competitiveness in the business environment for the organization
Porter's 5 Forces Model can be used. This model involves business environment factors like
competitive rivalry, the bargaining power of supplier, power of customer, threat of new entrants
and threat of substitute products. Effect of all the forces over business operations of the company
are analysed in this strategical tool in order to frame an effective business strategy.
Competitive Rivalry (High): Competitive rivalry is among the major force involve in the
Porter's 5 Forces Model. This involves the amount of competition organisation face in all the
sectors like healthcare, beauty, photography and pharmaceuticals (Mu and et.al., 2016). All such
sectors involved in the business of Boot Company are very competitive in nature as company