The Body Shop is arguably one of the greatest sustainable beauty retailer. The
company provides strong long-term competitive advantages that distinguish it from
other competitors. In this thesis, VRIO analysis is used to analyse the internal
factors of The Body Shop’s competitive advantage by measuring the capabilities
and resources owned by the company. On the other hand, the external factors will
be analysed using Porter’s 5 Forces by analysing the forces that shape competition
within industry in order to create suitable strategies in the market environment. In
terms of CSR, The Body Shop has been successfully generated many positive social
impacts since 1986 that will be analysed using a theoretical framework called
Carroll’s Pyramid. This thesis will also provide advices for The Body Shop in order
to enhance its business and to reach future prospects by implementing Ansoff
Matrix into its business strategy.