Professional Documents
Culture Documents
Word Count - 49
1. INTRODUCTION
The health food retailing industry is a highly profitable industry that has grown
steadily over the past few years. The specialists and the health food retailers
have been facing intense competition from the supermarkets and this is likely to
increase in future. This report scrutinizes the key factors which could be altered
2. INDUSTRY ANALYSIS
The health food retailing has grown steadily (+19% 2002-07 to pound 464
(Mintel, 2008) The key segments of the health food market include organic food,
complementary medicine, meat free food, sports and energy drinks, slimming
food and vitamins and mineral supplements. The value of health food market is
It’s said to be the partial number of areas in which satisfactory results will
(Morrison, 2008)
4.1. Product- The repercussions that would arise in relation to the product-
innovation initiated by the HQ-Intrapreneurs for the health food industry will focus
includes relationship with supply chain. In the value chain curve it can be seen
that the demand for the product will increase by maintaining good relationship
4.2. Process- Among the major targets of the health food retailing in the current
scenario are independent health food stores, but figures suggest that the number
of these is declining and customers mostly like to purchase from super market
chains as they carry wider choices of health food, have good infrastructure,
manufacturers and becomes a rising factor in the value innovation curve. (Mintel,
price. There’s always a price war between retailers, the supermarket chains and
the independent stores. Therefore, supermarkets are preferred choice in future
4.3. People- New relationships with the current network can include
collaborations with gyms, spas, health clubs, hotels, hospitals etc and private
or own label branding. Most of the big supply chains make alliances with the
leading manufactures of the health food and sells their product under the name
can also be used to alter the competition through Blue oceans strategy which is
when there is a very intense competition in market and all the companies are
fighting on the same parameters e.g. price, quality etc and there’s a need to
amendment the rules for competition are redefined. (Kim and Mauborgne, 2005)
4.4. Pressure- The industry has to face various pressures rules, regulations and
laws. The new legislation requires supplements to be licensed (which are pretty
expensive) used by the health food industry which could restrict the availability of
new products and can damage the growth of sales. The industry can overcome
can afford expensive licensing of products and also have expertise. (Mintel,
2008) (Appendix-2)
and reshape the industry through some critical factors for success which are as
follows:
5.1. Ergonomics
methods they use, and the environment in which people work and live.”
(Dilworth, 2000)
In other words it is the science of job designing and making the equipments and
the working environment fit for the workers. Employees in the work place may
suffer from fatigue and distress which can increase the cost of doing business
premiums.
retraining.
As a result of the above productivity, product quality, and employee morale will
Ergonomics can improve productivity and work efficiency of workers and also
integration).
5.2. Collaboration
Under this factor, apart from the health food retailing industry in order to expand
the business opportunities, organizations can join forces with Health Clubs as
they may offer suggestions and benefits of intake of Health Food, Health Drinks
and other VMS (Vitamins, Minerals and Supplements) to their members. In a
similar way, Gymnasiums, Spas can also offer Health Food products. To cater
these organizations in doing so, kiosks can be put at these places with
Health food retail industry can also join hands to supply VMS products through
big pharmaceutical companies which in turn can help with the funding for
“Strategic alliances subsist when more than one organization combine forces in
Hesterly, 2008) Therefore, small players in the health retail industry should form
The good distribution channel is a critical success factor for every company thus
keeping in mind the fact that many companies have been selling their products
through huge retail chains such as Holland & Barrett which is a largest
specialist’s chain, Tesco and Boots, Private Labeling Strategy can be opted
6. Conclusion:
To conclude, it can be seen that the UK Health food Retailing Industry carries
through Ergonomics.
(Word Count-1099)
References
• Kim, W.C. and Mauborgne, R. (2004), Creating a New Value Curve, Value
Innovation, The Strategic Logic of High Growth, Harvard Business
Review, pp. 175-176
• Kim, W.C. and Mauborgne, R. (2005) Blue Ocean Strategy: From Theory
to Practice, Vol. 47 (3), Reprint Series, California Management Review,
Berkeley, University of California, pp. 106-108
Niche Market
Distribution
Pricing
PR/ Event Management
Collaboration
Ergonomics
Supply Chain Network
Strategic Alliances
Taste
Naturally Healthy
Variety
Convenience
Partnership
Technology Innovation
Outsourcing
Global Suppliers
LOW HIGH
REDUCE
Pricing
PR/ Event
Management
Taste
Partnership
ELIMINATE CREATE
A NEW
Distribution Collaboration
VALUE
Naturally Strategic
Healthy CURVE Alliances
Variety
RAISE
Niche Market
Ergonomics
Supply Chain
Network
Convenience
Technology
Innovation
Outsourcing
Global Suppliers
Reference: Kim and Mauborgne (2005)