Problem Statement
Peter owns a chain of health food stores in the United States. His store specializes in selling organically grown produce and health food to the local niche market. The entry of a new rival into the market has reduced the market dominance previously enjoyed by Peter’s company. The rival company, an established grocery store, is offering similar organic and health products.
Relevant Facts Related to the Problem
Some of the main factors for the decline in customers and sales are:
Competition: Entry of the grocery store chain into the organic and health food market has made a cut into the customer base. The competitor is selling similar goods at a lower cost than Peter’s store. Due to the high costs of raw materials, Peter is unable to lower his prices. Another factor is that the customer base targeted by Peter’s company is limited. Lack of marketing infrastructure and visibility has a negative impact on the business. His store currently does not offer additional services for customers.
Converting Problem into Opportunity
Environmental factors can have a major impact on the performance of health food business. For Peter to be competitive and be in business, he should first determine the factors that are contributing to the problem his business is facing. Steering the company in the right direction will require Peter to identify new strategies to counter the current shortcomings in the way the business is run. Identifying new opportunities in the industry will help Peter to look at new avenues for growth in the business. Based on the findings from research of the industry, Peter can definitely convert the problem he is facing into an opportunity. Here are some solutions that will help Peter retain his existing customers and grow his business:
Competition/Competitive Analysis: Competition can sometimes be good for business. Analyzing competitor products and identifying the differences in the offerings of products can be very useful. This will allow Peter to identify new products that he can stock up that will offset any comparative shopping by his customers. These new offerings will have to be as per the current trends in the health food industry.
Supplier: Peter will need to explore the possibility of identifying new suppliers for some of the products he is selling. This will give him the bargaining power required to lower costs on his procurements. Retaining the quality and lowering the supplier price will allow Peter to sell other products in his stores.
My organization, Trader Joe’s, is not an international business. Their stores are all located in the United States; therefore, I chose Whole Foods, who is a main competitor of Trader Joe’s for this assignment.
In your industry, an entry barrier is to provide customers with high quality, fresh, homemade products. With the surge of the health craze, more people are likely to go to a Café type establishment, than go to a fast food restaurant. Health-conscious customers have come to know and expect this from any café/restaurant trying to enter this market.
... There are a lot of competitors in the market selling dancewear on a much bigger scale than Karolina does right now. The three potential competitors mentioned in the case have a different distribution strategy as compared to Karolina. They sell their products through retailers and are international businesses selling across the border of Canada as well. Their scale of business is very large, selling in numerous retail stores and thus obviously producing a lot more than her, and although not stated, it is safe to assume that their revenues are way bigger than Korra Dancewear’s. The implication and analysis of this data is that the three given competitors- Ainsliewear, Mondor and Bloch cannot be considered a direct competitor to Korra Dancewear. Their scale of business, their distribution channels, their sales and the amount of capital invested by them in the business and the amount of human resource investment is huge - they have been in business for years and have tons of valuable experience over Korra Dancewear. Karolina works all alone with no proper office set up or a business plan or any dedicated retail store, so her competition is different, like the online store DANSHUZ , who just like Korra Dancewear only sell through their online
The analysis of the Kellogg’s case is presented in this chapter and will contribute to answer the research question. The case are evaluated and compared to the literature presented in the previous chapters and will support the conclusion of this paper.
The key issues facing the client are that; firstly; the business is focusing all of its energy onto the youth market and not attracting business and sales from the older demographic that in years to come will be a massive market, which is as yet untapped. This may be due to the fact that one of the client's main aim is to "help provide children with healthier food" (GMID 2007). Secondly; the client has not fully taken into account the changing lifestyles of people and their demands, emerging markets within the health drinks market such as health snacks have not been considered by the client and must be if they wish to expand their business and move away from being known as a one product business.
• Discussing the two forces of competition, which are threat of new entrants and threat of substitutes, and identifying the most significant of those forces for McDonald’s Corporation.
Customers/Consumers were worried about the changes in the market for food and drugs because they no longer had a single clue of what was in their products. Food production was moving from household prepared to general markets. As food markets became more refined due to the improvement of technology. The difficulty in discerning the quality of their product heightened. With new and quicker ways make food, fears of the ingredients that the foods consisted grew. Preservatives and chemicals also instilled a concern to consumers. Health officials, chemists, and other individuals tested and proved the dangers of these new additives.
To most consumers Whole Foods is known as a chain grocery store specializing in organic and natural foods. Some may go as far as say the name is synonymous with quality. This comparison is the result of Whole Foods’ marketing their brand successfully to consumers demanding their specialized foods. As with any organization, Whole Foods may consider evaluating their strategic objectives and decide if necessary course corrections are needed to reach their objectives and goals. Through a fundamental and technical analysis, I will discuss Whole Foods’ mission, vision, and goals, their competitive environment, and some factors within their strength, weakness, opportunity, and threat analysis. With such data and information I will recommend, if needed, and strategic changes in order to sustain a competitive advantage.
For Oliver’s Market among the five Competitive forces, pressures associated with the threat of new entrants into the market are the strongest one. Because Wal-Mart and Target had announced plans to develop regional supercenters in the Sonoma county region. They are strong candidates for entering the market, because they possess the res...
Happy Chips, Inc. is faced with a serious problem, with only having one mass merchandise customer called “Buy 4 Less” being unhappy with the company’s operating performance. Buy 4 Less had several problems cited including frequent stock outs, poor customer service responsiveness, and high prices for the products being supplied. Buy 4 Less came up with solutions they think seem fit to fix the problems they found with Happy Chips, Inc. and if Happy Chips, Inc. wishes to remain a supplier to their company they will have to incorporate these changes. The problem however with this scenario, is that employees of Happy Chip, Inc. are not happy with the demands Buy 4 Less has bestowed upon them which include providing direct store delivery four times a week instead of three, installing an automated order inquiry system to increase customer service responsiveness, and decreasing product prices by 5%. Even though the easiest thing for Happy Chips, Inc. to do is to agree to the changes Buy 4 Less wants them to do, Wendell Worthmann, the manager of logistics cost analysis doesn’t agree to the changes right away. The main problem with this case is that Buy 4 Less is Happy Chips, Inc. one and only mass merchandise customer that accounts for 400,000 annual unit sales and 12% of annual revenue. With the mass merchandise segment having such a high profit potential, Happy Chips, Inc.
marketplace no matter what the product is when a company begins sacrificing at the customers expense people take notice quickly. This is when the buyer thinks they would be willing to give a little more in the price to be happy about their purchase. This is when Papa John steps in and reminds us all that they have been number one three years in a row in customer satisfaction. People take notice of the decisions that other people make. If they see an empty Papa Johns box in the trash of their next door neighbor they will take notice.
Organico is a solitary unit organization that gives an elective decision of natural, sound sustenance’s to shoppers. Organico will center basically on natural sustenance’s, items and administrations and the business will focus on the wellbeing health food industry. Consuming at this restaurant will give our clients an encounter that they have never experienced previously, on the grounds that we will strive to dependably give delicious natural nourishments at a sensible value, and will dependably keep our clients wants and needs as a first necessity. Research has demonstrated to us that the Organic Food Industry is the quickest developing part of the American food marketplace. Natural nourishment deals have grown 17-20% a year over the past few years, contrasted with the tried and true sustenance commercial center which has just expanded from 2 to 3 percent for every year. While scrutinizing and examining the certainties that we have assembled from our exploration we now find that picking the healthier method for living is our customer's objective and will be what's to come. In this way, we are sure that our organization will be lucrative. Organico values the capacity to give astounding client administration; offering the most noteworthy nature of natural items that are accessible in the business sector; flavorful food cooked to flawlessness; and we ensure a quiet, nature's domain. At the point when our clients leave our establishment they will be exceedingly fulfilled, and proceed to reliably returned to delight in our organics nourishments. Organico has four managers which comprise of; the chief of showcasing, executive of account, executive of human assets, and the chief of operations. Each of our managers are answerable for a ...
If competitors offer equally attractive products and services, then one will most likely have little power in the situation, because suppliers and buyers will...
Big rivals such as Tesco and Morrisons started to compete in price by shrinking packages, introducing cheaper equivalent products, or using cheaper ingredients. Although these strategies cause a sluggish revenue increase, it works on boosting sales and market shares. For example, Tesco’s sale grew by 2.2 percent during July to September. Apart from the traditional retailers, Aldi who applies a similar discounter model is also a strong competitor. In 16th July, the market share of Aldi was 6.2% while Lidl occupied 4.6% of the market (Gale,2016) Compared to Lidl, Aldi has a more dominant market position and better corporate with local farmers. To stand out from these rivals, Lidl still has a long way to go.
Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment. The importance of Environmental Analysis lies in its usefulness for evaluating the present strategy, setting strategic objectives and formulating strategies.