GNLD and Its Product Nutritional Supplements - Assignment Example

? Opportunities and Threats in GNLD Company Market forces help firms to contrast a competitive environment withtheir products. Though many firms have proved to fail in competing effectively as a result of these market forces, it is important for the firm to scan both external and internal environmental factor since it is an essential planning strategy. This paper will discuss the market forces within GNLD, and suggest way of dealing with threats and using the opportunities to achieve it long-term goals. Introduction The ever-changing technology has impacted notable changes in various industries. For instance, health industry, popularly know as the medical industry has changed tremendously through the combination of medical industry and human touch. It is through the fast changing health industry that new ways and methods of diagnosis and promotion of better health has been implemented. All these proceedings have brought about patient care, worker efficiency, and hence better health. To achieve these objectives, several companies like GNLD, which manufacture and sell nutritional food supplements, have been introduced. This product has however been impacted by market forces as discussed in this paper. Degree of Rivalry With the increased need for better health, and the extensive research being carried out in the health industry, rival firms have increased competition drawing the profits that GNLD used to make initially. This has made the competition imperfect; hence, each other firm is struggling to achieve competitive advantage and a higher market share than its rival company. In addition, the controversy on the quality of products of the increasing nutritional food supplements companies and slowed down the market growth. This has consequently led to need for storage of the products hence high cost. Further, some of the products are perishable thus; the company decides to sell the products at relatively lower prices. The exit barrier in any health related firms are high. This is because the costs of plants and machinery cannot be forgone thus the firm decides to keep competing no matter the state in the market. Though successful, GNLD has been forced to keep competing due to this factor (http://www.mlm-home-business-training.com/GNLD-Int-mlm-leaders-call-team-money-training-scheme-scam/secretsuccess.htm). Threats of Substitutes In a free market economy, restriction of entry into, and exit out of the market is not prohibited. This means that competitors with related commodities will venture in to the market. This threat will definitely occur since the demand of the products of GNLD has been affected by the prices changes in substitute product. For instance, a survey carried out in Kenya showed that GNLD products are highly affected by the prices from TIASHI, a competing food supplement company. From the research, it was found out that to become part of the marketing team in GNLD, a sum close to $36 is required then the individual should purchase products of high value. For TIASHI, a sum of $18 is required and the initial purchase is relatively lower. This determines the prices at which each the products are sold. Evidently, the close substitute products have constrained the ability of GNLD to raise prices (http://www.healthybusiness.co.za/GNLD%20Products%20Guide/introduction/i3.html). Buyers bargaining power This is the power potential buyers have on any industry that is producing commodities. In many market structures, the forces of demand and supply determine prices of commodities. It is obvious that buyers will expect such market structures. Since GNLD does not exist as a monopoly, the prices at which the food supplements are sold should be dependant of the market mechanisms. On the contrary, the food supplements from GNLD have fixed prices. The only advantage extended to the buyer is the ability to buy smaller quantities. This means that the buyer does not have bargaining power. It is thus possible in such a case to shift to other substitutes which give the allocation. In addition still, the marketing channels used by GNLD have become exploitive since some marketers sell their commodity above the set price. This will definitely mean that the customers will shift to other related commodities where their rights are protected. The full mandate given to marketers by GNLD management means that the marketers can decide on the price at which a commodity will be sold for they have full control (http://www.gnldsmith.com/business.html). Strategies to overcome the threats If the stated threats were improved, GNLD would compete effectively in the market. As indicated in the threats, competition increases due to lack of good quality, pricing strategies, and the distribution channels. It is important for GNLD to ensure that the name it has built worldwide through the quality of their products should not be tarnished in efforts to beat competition. Quality protects the right of the buyer and wins the confidence as well. The prices of the commodities should be set at level manageable low-income earners. Alternatively, the company should manufacture smaller quantities of their products to ensure that every customer’s need is met with their meager earning. The confidence of the customers is dropping due to corrupt marketers. It is important for the company to make strict regulations and follow ups to ensure that not marketer exploits their customers either by charging high prices or through sale of expired products (http://www.optimumlifepower.com/gnlddifference.html). Strategies to capitalize of opportunities GNLD is a company that for over 50 years has provided food supplements to clients. This has enabled them diversify to over 50 countries in the world. The interpretation for this is that they have the capability to use this as an opportunity of their established name, diversify to the rest of the world, and get more clients. Moreover, GNLD provided a vast number of commodities that have proved to be beneficial to their clients. With the high technology set in place within the company, their scientists and innovators should venture into introducing commodities that cater for all types of health needs with their financial capability (http://www.gnldsmith.com/business.html). In conclusion, the present state of GNLD proves that despite the market forces, the potential to meet its long-term goals is guaranteed. As a firm in the most crucial and fast growing industry, GNLD management should understand that being healthy is a vital need to every human kind. Therefore, if quality products are ensured through the right distribution channels, the company will compete effectively in the market, wining the largest market share and hence high profit will guarantee growth. References http://www.gnld.com/values.aspx?STORE_ID=1&NAV_CATEGORY_ID=3222&CATEGORY_ID=3246 http://www.wholefoodsupplementsonline.com/ http://www.gnldsmith.com/business.html http://www.gnld.com/store/Product.aspx?STORE_ID=1&CATEGORY_ID=1138&NAV_CATEGORY_ID=3230&product_id=10084 http://www.optimumlifepower.com/gnlddifference.html http://www.healthybusiness.co.za/GNLD%20Products%20Guide/introduction/i3.html http://www.mlm-home-business-training.com/GNLD-Int-mlm-leaders-call-team-money-training-scheme-scam/secretsuccess.htm Read More