Detailed Business Analysis Report on Boots: Industry, SWOT, and More

This report provides a comprehensive business analysis of Boots, a prominent health and beauty retailer. The analysis begins with an introduction to the company and its industry, followed by an examination of key issues, competitors, strengths, and weaknesses. A detailed SWOT and PESTEL analysis are presented to evaluate the company's internal and external environments, respectively. Furthermore, the report utilizes Porter's Five Forces to assess Boots' competitive position within the industry. The study then identifies the key issues faced by the company, such as low management skills. The conclusion summarizes the findings, highlighting Boots' strengths, weaknesses, opportunities, and threats, as well as the impact of external factors and competitive pressures. The report references academic journals and online resources to support its findings, providing a well-rounded evaluation of the Boots company.

BOOTS (SHOP)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1 Industry Data.............................................................................................................................3
2 Key issues, competitors, strengths and weakness.....................................................................3
3 SWOT and PESTEL of company.............................................................................................3
4 Competitive position.................................................................................................................5
5 Key issues faced by company...................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Boots is the company which operated in beauty and health and care product retail
industry. This company is founded by John Boot in 1849. headquarter of the company is
Beeaton, Nottingham, United Kingdom. This report will help to explain the key business analysis
of the boots company but SWOT and PESTLE analysis. Further more with the help of the
Porter's five analysis competitive -position of the Boots company will be identified. Lastly key
major issues in the management of the Boots company will be described.
MAIN BODY
1 Industry Data
Boots is a trading health and beauty retailer company, which falls under the pharmacy
chain in the United kingdom. This not only serve their services in the UK but also operated in
Ireland and Thailand. In the UK the retail industry operating very well and contribute a lot to the
growth of the UK economy. In the year of 2017 it helped to generate £395 billion sales and
319,000 retail business are operated in UK (Phadermrod, Crowder and Wills, 2019).
2 Key issues, competitors, strengths and weakness
As this Boots operate in beauty,health and care field which is trending retailer in UK.
This company have number of rivals like Walmart, target, CVC health, CVC pharmacy etc
which gives the tough competition to Boots company. Key strength of the company is its
employees, Boots has 354,000 number of employees which contribute a lot to achieve its target.
One of the weakness of Boots in low expansion in global market.
3 SWOT and PESTEL of company
SWOT analysis
Strength
 One of the main strength of the Boot company is that it has strong research and
development that help the company to detailed market knowledge.
 Boots company offer the wide range of innovative products.
 Another strength is that, it has many subsidiary brand that help to hold the market and
sustain the lead in market.
Weakness
 Limited global areas as compare to the competitors in the market is its one of the
weakness.

 Business of the boots is only depend on the UK market that lead to the fluctuation to the
business.
Opportunities
 Boots company can expand its business into other countries as well.
 Boots can also increase its product portfolio as this has multi brand options for their
customers.
Threats
 Low cost of the products can create the low quality product in the mind of the customers,
so that they will not buy its products.
 Strong competition in local market and global brand are main threat of Boots.
 Substitute an copying products now become the threat for Boots and affect its business.
PESTLE analysis
Political — Changing and unstable political condition of the country will affect the business of
the Boots. As company have to change its strategies as according to their political region. This
may lead to the change in management style of the Boots. Because of the change employees may
leave the company and this will affect the productivity (Abulude and et.al., 2018).
Economical — Good economical condition of the country will help the Boots company. As
good economical condition have low interest and taxation system so the price of the Boots
products might be low. This will increase the profit share of company in the market. Good
economic conditions help the company to get the best resources as well for their innovation and
development.
Social — As Boots operate in beauty retailer industry, which is socially connected with the
people. If company produce their beauty products as according to the major skin problem of the
customers, and according to the age and gender, then this will give hike to business. And in this
promotional activity also play vital role by emotionally connect people through advertisement.
Technological — Technological up gradation will help Boots company to produce the quality
beauty products for their customers as according to the different requirements of the people. But
to bring technological advancement in the company may be costly for Boots as it may have to
increase its product price. This increase in price will affect the demand and profit of boots.
Legal — If Boots company follow all the laws and regulation in their company like, health and
safety law for the employees, consumer protection law, equity act etc. then this will help the

company to increase its trust and loyalty towards their employees and customers (Abulude and
et.al., 2018). This will help Boots to retain their employees.
Environmental — Environmental condition affect the production of the company, like flood,
heavy rain will stop the import and export activities of the company, and its production would
affected.
4 Competitive position
Porters five force analysis
Suppliers power — Power of the suppliers is moderate in the case of the Boots company. As the
strong relation with suppliers will not affect the business and company may switch to the other
suppliers in order to reach the customers with their products (Jobber, Lancaster and Le Meunier-
FitzHugh, 2019).
Threats of substitutes — This threat of substitute product is high. As there are number of
substitute products available in the market which affect the business of Boots. People also prefer
to buy those low price beauty substitute products. As this require low capital to operate this
business then anyone is producing substitute products as compare to the Boots company
products, which affect the business of boots and profit share in the market.
Power of buyers — Bargaining power of the buyer is also moderate, as the boots have multiple
brand and alternatives, that have existence in public health insurance. So this will not affect the
business of Boots at great extent. As the company has number of other brands, which help Boots
to be sustain in the market for longer time.
Threats of new entrants — Threat of the new entrants in this industry is high as this attracts the
high number of small business and it requires the low capital to establish company (Jory and
et.al., 2019). This also affect the business of the Boots company, if there is another company
which offer the low cot products with same quality.
Degree of Rivalry – Threats of the Rivalry for the Boots company is very high. As there are
number of competitors in the market which offer the same or high quality beauty and health care
products to their customers an in the nominal rates. This affect the business of the Boots
company at great extent.
5 Key issues faced by company
There are some issues in Boots company, which they have to face. These issues affect the
business of the Boots at great extent. Its low and poor management skill of their managers is one

of the key issue. Because of this company have to suffer from the low productivity. This low
productivity decrease the profit margin of the company in all the areas where they serve their
services and products (Pera, J., 2018). Managers of Boots company not provide effective training
and development to their employees who can contribute to increase its productivity in the market
and can help to increase its profit.
CONCLUSION
From the above study it has been concluded that, Boots is beauty, health and care
company, which operated in Pharmaceuticals industry. As this industry play the significant role
in the UK economy by contributing a lot. It has been also identified the key strength and
weakness and market opportunities of Boots company and influence of external environment on
the boots products. Competitive position of the company is also been identified with the help of
the Porters five force, in which rivalry threat and threat of substitute products is high as it affects
the business of the Boots company. It has concluded that, Boots company facing problem of their
low management skills of managers that not provide effective training and lead to the low
productivity.

REFERENCES
Books and Journals
Abulude and et.al., 2018. Sensory Analysis Test of Pounded Yam Made from a Pounding
Machine Designed and Fabricated in Nigeria.
Jobber, D., Lancaster, G. and Le Meunier-FitzHugh, K., 2019. Selling and sales management.
Pearson UK.
Jory and et.al., 2019. Are retailers “bagging” the carrier bag levy in England? An exploratory
enquiry.Journal of environmental management. 233. pp.845-853.
Pera, J., 2018. Sharing economy as the new paradigm of the economy of the future. Risk
analysis. Central European Review of Economics & Finance. 23(1). pp.13-33.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis.International Journal of Information Management. 44. pp.194-203.
Online
Marketing Analysis on Boots.2019.[Online].available
through<https://www.academia.edu/19597352/Marketing_Analysis_on_Boots>

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