Strengths: Biotech has a rich history that dates all the way back 1922 and is a family owned operation which provides a foundation of knowledge and experience. This knowledge and experience has led to a 20% market share by the turn of the 21st century which allows it’s products and services to be experienced by a large part of the market segment. With its 35 billion in annual sales, Biotech maintains a healthy cash flow that allows it to adapt to industry opportunity and circumstance. Biotech allow has manufacturing facilities on 4 separate continents which allows it to market and sell to people of different demographics and culture segments with ease. Biotech also has eco sustainability commitments to build housing for the communities where
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In addition social media platforms have allowed for lower cost marketing than ever before. This allows the entrant company with possibly lower capital a chance to compete with industry veterans. However, entrants would only be able to make a minimal impact unless the entrants products we’re legitimate due to the FDA’s oversite on how nutraceuticals are marketed. Given the aforementioned facts and the fact that it would be relatively hard to an entrant to be able to establish relationships with big box retailers such as Vitamin Shoppe and GNC the threat of entrants is …show more content…
Also, customers have the ability to gather large amounts of data in order to make their purchasing decision via the internet. However, with Biotech holding a 20%+ market share, Biotech has a high brand awareness that resonates with customers. Given Biotech’s long history and high brand awareness the customers loyalty to the brand should be strong leading to medium buying power among buyers.
Bargaining Power of Suppliers: Given that many if not all of Biotech’s nutraceuticals and supplements are all natural Biotech enjoys a plethora of supplies for raw goods. The price of these raw goods are typically effected by supply and demand and sometimes environmental concerns. There are many companies that supply these good and there is low consolidations among suppliers. In addition, Biotech has 10 manufacturing facilities in operation which strengthens the companies supply flow. Due to these facts the bargaining power of suppliers is
In addition social media platforms have allowed for lower cost marketing than ever before. This allows the entrant company with possibly lower capital a chance to compete with industry veterans. However, entrants would only be able to make a minimal impact unless the entrants products we’re legitimate due to the FDA’s oversite on how nutraceuticals are marketed. Given the aforementioned facts and the fact that it would be relatively hard to an entrant to be able to establish relationships with big box retailers such as Vitamin Shoppe and GNC the threat of entrants is …show more content…
Also, customers have the ability to gather large amounts of data in order to make their purchasing decision via the internet. However, with Biotech holding a 20%+ market share, Biotech has a high brand awareness that resonates with customers. Given Biotech’s long history and high brand awareness the customers loyalty to the brand should be strong leading to medium buying power among buyers.
Bargaining Power of Suppliers: Given that many if not all of Biotech’s nutraceuticals and supplements are all natural Biotech enjoys a plethora of supplies for raw goods. The price of these raw goods are typically effected by supply and demand and sometimes environmental concerns. There are many companies that supply these good and there is low consolidations among suppliers. In addition, Biotech has 10 manufacturing facilities in operation which strengthens the companies supply flow. Due to these facts the bargaining power of suppliers is