CLC: Milestone 2 Competitive advantage
Industry Analysis
Conduct an analysis to ensure the market size of your industry is growing (if not, you might want to diversify) and to help identify new growth opportunities.
CLC: Milestone 2 Competitive advantage
Industry analysis
To analyze the Health & Wellness industry of the United States, using an appropriate PORTER’S framework will be helpful and suggested. The industry analysis for ensuring that the market size of the US Health and Wellness industry is growing can be analyzed as
The power of buyers
The US Health and wellness industry has experienced an increase in the demand for health spas, mineral springs, and thermal springs. Hence, the overall health and wellness market in the US is expected to reach $6,543.4 million by 2021 increasing the CAGR of 4.8%. It will be boosted from 2018 worth $4,514.3 million (GlobeNewswire, 2020). It signifies that the power of buyers within the industry will keep growing and expanding in the coming years because the thermal and mineral springs will bring various health benefits such as an increase in blood circulation levels, stress reduction, etc. Therefore, the power of buyers will be high.
Threat from new entrants
The threat from new entrants in the US Health and wellness industry will be low because even if the market and industry will keep growing, it will not affect Well Family Fitness. After all, the brand is already renowned in and around the US. The customers’ demands for new and unique products to live a healthy lifestyle will also eventually increase and the company may gain more and more customers. Therefore, even though Well Family Fitness will keep experiencing high competition still customers will reach out to them for their trustworthy products and reliable services.
Power of suppliers
As said earlier, the market size of the Health and wellness industry in the US is growing and expanding, it creates more opportunities for companies to bring out new products and services supplied by the best suppliers in the country. Therefore, as far as the power of suppliers is concerned, it will remain high in the industry, and Well Family Fitness.
Threat from substitute products
The threat from substitute products is the same as the threat from new entrants. The threat from new entrants is high for the industry similarly the threat from substitute products will also be high. It is so because the competition and brands will keep emerging in the industry searching for a stable position amongst other brands. Therefore, they will bring out more innovative and convenient products at affordable rates. As a result, the already-established companies will face a lack of customers and threats from the newly innovated products.
Competitive rivalry
The competitive rivalry in the industry will be high. It is so because no 2 or 3 brands are competing with each other, instead, there are thousands of brands in the US Health and wellness industry which are competing with each other to get a solid and stable position in the market and industry.
Reference
GlobeNewswire (2020). Global Health and Wellness Industry Expected to Observe Significant Growth and Hit $6,543.4 Million by 2026. Retrieved on 30th August 2022, from: https://www.globenewswire.com/news-release/2020/11/10/2123853/0/en/Global-Health-and-Wellness-Industry-Expected-to-Observe-Significant-Growth-and-Hit-6-543-4-Million-by-2026-Exclusive-Report-110-Pages-by-Research-Dive.html
