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 h ...