External Analysis Research Paper

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a preference for a healthy products. In fact, an article on rappler posted by Cabiao mentions that in the recent years, Filipinos now choose a healthier lifestyle as shown in their food product choices. This allows the nutraceutical market to grow and develop into a more profitably attractive industry.

b. Technological advances

The market for nutraceutical products greatly depend on the quality of vitamins they consume/buy to ensure that they get what they pay for. For instance, the number of benefits and the quality level of a certain supplement would be very attractive to buyers of the said product as compared to those products that give off an untrustworthy vibe. Furthermore, advanced technology that enhances the quality, produce advanced products, and reduce spoilage or defective products also contributes to enhancing the value of a competitor in the nutraceutical market.

c. Product innovation

The rapid development of technology demands that new and improved products be developed to satisfy new customer preferences brought about by the available information. Additionally, as humans grow, so does the number of functions that would need attention. This develops the attractiveness for the nutraceutical industry especially when competitors are able to take advantage of the growing needs of consumers in the said industry through product innovation; thereby allowing the industry to grow.

d. Government Regulations

Government regulations play a key role in the development of the nutraceutical industry since the government prioritizes the health of its citizens and therefore set restrictions and regulations as to how products are produced and what types of products nutraceutical manufacturers can produce.

3. Key Success Factors

a. Superior Research and Development

The nutraceutical market highly favors companies that offer vitamins/supplements with advanced product features or benefit such as higher vitamin level, faster effects after in-take etc. This is achievable through strong Research and Development efforts. Companies with superior research and development are able to take advantage of a product leadership where they can enjoy the benefits of such.

a. Products with a trustworthy and recognizable Brand with excellent benefits

Manufacturers that have established their brand as trustworthy and offers products with advanced and excellent benefits effectively captures the interest of the market. Buyers of nutraceutical products keep an eye on the brand and check whether the company offering the product is trustworthy or not. Moreover, buyers also look at the benefits to check whether the benefits meet their expectations and equate to the price they pay for the product. Companies that are able to take advantage of these factors enjoy the benefits of profits and subsequently market leadership.

b. Advance Technology

To enhance a company’s ability to take advantage of the two previous key success factors, the company must be able to employ advanced technology in order to produce better products at a faster rate, reduce low-quality products that would hurt their brand and eliminate defective products. Advance Technology would also be useful to developing new and improved products which would allow the company to enjoy the benefits of having the first better product in the market. Manufacturing companies that are able to take advantage of these opportunities are steps closer on grabbing success in the nutraceutical industry.

4. Positioning of key competitors

5. EFE Matrix

Opportunities

1. change in trends and lifestyle (increase in health consciousness)

2. more germs that evolve

3. growing market for vitamins and supplements in the Philippines

4. Globalization with regards to information

Threats

1. Growing market which attracts more potential competitors

2. Fast paced environment

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