Environmental Framework for Life Economic - The economic factors impacting the e
ID: 398659 • Letter: E
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Environmental Framework for Life Economic - The economic factors impacting the environmental framework are economic growth rate, inflation, interest rates, taxation on health supplements and nutrition products The financial markets cycle and capital availability for market expansion affect the operations of LifeBetter and other players in this industry. Consumer spending also depends on the state of economy and options available in the market for health and nutrition supplements in the market. Economic sops and benefits offered for such products can encourage better growth prospects and advantages These are good definitions but where is the economy in relation to the various indicators you listed? How might they affect consumer willingness to buy, ability to buy your product? Competition - Competition affects the strategy to be adopted in terms of product range, distribution channels, prices, promotions and discounts, customization of products as per customer requirements and market needs. Some brands which have online presence and offer regular discounts and coupons may have more wider customer base. Health supplements which are new to the market require proper details to be explained to new customers. Direct sales are also an important channel used for selling health and nutrition products LifeBetter needs to consider all these factors while doing environmental scanning. You can do a quick overview of competition here and a more in-depth in the separate Competition section beloExplanation / Answer
Economic factors: Talking about American market for Life, the economic environment is vey well and have many opportunities for the product. American consumers spend considerable amount of their income on fitness and health. The per capita income of consumers is also high thus making avenues for potential of good spening on Life product. the healthcare industry is growing not only inadvance cpuntries but in developed countries too. whereas rather than taxation, government provides subsidies in healthcare market and development of healthcare products. Thus many opportunities are there from economic environment.
Competitive environment: A number of large,small and medium size manufacturers operate in this industry of deitary supplement. Large section of customer base has been captured by big well known brands however in local regions, local brands are also rising. This gives a glimpse of high rivalry in coming few years.
Technology: Technology in distribution could play key role in makimg comparartiev advantage. Eretailers can be communicated through which easy availability at low delivery cost can be supplied. On other hand continous research and development is key to success in the industry. WIth new insights brands come up with ne formula at low cost. These product require specific standard testing from authorized organizations such as Food and drug administration to which quality shoudl be of up keep mark.
Legal: There are number of acts, provisions and rules and regulations that govern this market. Such as FDA food safety modernization act, food facility registration is required, current goods manufacturing practices provides guidanace and detailing about methods, processing of the products.
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