GNLD and its product Nutritional Supplements Assignment

GNLD and its product Nutritional Supplements - Assignment work stunnedIt is through the fast changing health industry that new ways and methods of diagnosis and promotion of develop health has been implemented. All these proceedings have brought ab surface patient care, worker efficiency, and hence better health. To come through these objectives, several companies like GNLD, which manufacture and sell nutritional food supplements, have been introduced. This product has however been force by trade forces as discussed in this paper. Degree of Rivalry With the increased contract for better health, and the elongated research being carried out in the health industry, rival firms have increased competition design the profits that GNLD used to make initially. This has made the competition imperfect hence, each other firm is essay to achieve competitive advantage and a higher market share than its rival company. In addition, the arguing on the quality of products of the increasing nutritional food supplements companies and slowed down the market growth. This has consequently led to need for storage of the products hence high cost. Further, some of the products are perishable thus the company decides to sell the products at relatively lower prices. The blend in barrier in any health related firms are high. This is because the be of plants and machinery cannot be forgone thus the firm decides to keep competing no matter the state in the market. Though successful, GNLD has been compel to keep competing due to this factor (http//www.mlm-home-business-training.com/GNLD-Int-mlm-leaders-call-team-money-training-scheme-scam/secretsuccess.htm). Threats of Substitutes In a free market economy, restriction of entry into, and exit out of the market is not prohibited. This means that competitors with related commodities exit venture in to the market. This threat will definitely occur since the demand of the products of GNLD has been affected by the prices changes in s ubstitute product. For instance, a survey carried out in Kenya showed that GNLD products are highly affected by the prices from TIASHI, a competing food supplement company. From the research, it was found out that to become part of the marketing team in GNLD, a sum close to $36 is inevitable then the individual should leveraging products of high value. For TIASHI, a sum of $18 is required and the initial purchase is relatively lower. This determines the prices at which each the products are sold. Evidently, the close substitute products have constrained the aptitude of GNLD to retch prices (http//www.healthybusiness.co.za/GNLD%20Products%20Guide/introduction/i3.html). Buyers bargaining power This is the power potential buyers have on any industry that is producing commodities. In many market structures, the forces of demand and supply determine prices of commodities. It is obvious that buyers will expect such market structures. Since GNLD does not exist as a monopoly, the prices at which the food supplements are sold should be aquiline of the market mechanisms. On the contrary, the food supplements from GNLD have fixed prices. The only advantage extended to the buyer is the ability to buy smaller quantities. This means that the buyer does not have bargaining power. It is thus possible in such a case to shift to other substitutes which give the