Burt’s Bees Case Analysis
Burt’s Bees Case Analysis
Contents
Evaluation of Opportunities in the case
To evaluate the opportunities for Burt’s Bees in the case we would need to do an internal analysis of Burt’s Bees i.e. look into its strengths, weaknesses, threat and opportunity vis-à-vis the competition and the market scenario in 1997. Burt’s Bees ' success was hard won through 18~ to 24 months of pruning after the company 's move from Guilford, Maine in 1994. Production was extremely labor intensive in Maine due to the large supply of low-paid unskilled labor, Burt 's Bees had to automate production in North Carolina, though, to minimize the cost of its highly paid skilled labor. Thus it is important to understand the internal environment after 1997. Hence, we should go ahead with a SWOT analysis of Burt’s Bees and understand the position of the company with a focus on internal improvement.
Strengths
Burt’s Bees already had presence in nearly 3000 stores across the nation in 1997. There margins were at 35 percent of their sales e.g. a lip balm which was manufactured in 23 cents was sold at $2.25 in the stores. Burt’s Bees had entered international markets like Europe and Japan. The stores are now looking for products that are more innovative and would provide a pleasant experience to the customers when they come to shop. Burt’s Bees has completely revised its product list in the last ten and is adding new products at a very fast pace. This has made their bucket full of a variety of products that other players do not have. By 1997, Burt 's Bees had over 70 "Earth Friendly, Natural Personal Care Products". Burt’s Bees are the only player in the market who are all natural and do not add any stuff like synthesized petroleum fillers or artificial preservatives. Burt’s Bees reduces the use of unnatural substances, reuse the material and recycle the waste. They deliver what others only promise. Sales in the bath products and skin care both have shown
Contents
Evaluation of Opportunities in the case
To evaluate the opportunities for Burt’s Bees in the case we would need to do an internal analysis of Burt’s Bees i.e. look into its strengths, weaknesses, threat and opportunity vis-à-vis the competition and the market scenario in 1997. Burt’s Bees ' success was hard won through 18~ to 24 months of pruning after the company 's move from Guilford, Maine in 1994. Production was extremely labor intensive in Maine due to the large supply of low-paid unskilled labor, Burt 's Bees had to automate production in North Carolina, though, to minimize the cost of its highly paid skilled labor. Thus it is important to understand the internal environment after 1997. Hence, we should go ahead with a SWOT analysis of Burt’s Bees and understand the position of the company with a focus on internal improvement.
Strengths
Burt’s Bees already had presence in nearly 3000 stores across the nation in 1997. There margins were at 35 percent of their sales e.g. a lip balm which was manufactured in 23 cents was sold at $2.25 in the stores. Burt’s Bees had entered international markets like Europe and Japan. The stores are now looking for products that are more innovative and would provide a pleasant experience to the customers when they come to shop. Burt’s Bees has completely revised its product list in the last ten and is adding new products at a very fast pace. This has made their bucket full of a variety of products that other players do not have. By 1997, Burt 's Bees had over 70 "Earth Friendly, Natural Personal Care Products". Burt’s Bees are the only player in the market who are all natural and do not add any stuff like synthesized petroleum fillers or artificial preservatives. Burt’s Bees reduces the use of unnatural substances, reuse the material and recycle the waste. They deliver what others only promise. Sales in the bath products and skin care both have shown
References: Jeffery Timmonas, “ New Venture entrepreneurship for 21st century ”2007