Healthy Life Group Harvard Case Solution & Analysis

Healthy Life Group Case Solution

Current Situation

Heather Larson is planning to deal in the nutri fusion products as nutri fusion products are more successful in the US and other developed countries. Larson wants to introduce nutrifusion products in the Canadian market and in order to pursue this plan, Larson is evaluating certain alternatives so that she could adopt the best available option in order to implement her plan.

SWOT Analysis

Strengths

It is expected that nowadays consumers have more knowledge regarding the products and operating in a health food industry is the core strength for the company and the idea of providing Nutritional value to its customers could be the key source of success. In addition to this, the management of the company has full control on its products and distribution channels, which is also considered as a strength for the company as compared to its competitors. As the company is not facing any kind of direct competition, therefore operating in such segment could also be considered as a strength for the company.

Weaknesses

The management of the company is not following efficient marketing practices as compared to its competitors therefore, it is considered as a serious weakness for the management and for the company as well. The management of the company is considering using single supplier for its products,which could also be considered as a weak point with respect to operation management. In addition to this, the management of the company is planning to provide extra credit facility,which could create cash flow and working capital problems for the company therefore, providing extra credit facility could also be a weak point with respect to the management of the company.

Opportunities

It is expected that there are several opportunities present in both local and international markets and by following expansion and penetration strategy more effectively, the revenue and profit margin of the company could be increased which will provide more benefits in long term and short term as well. In addition to this, the management of the company could increase the product range of the company in order to diversify its risk, to attract greater market share and greater number of customers as compared to its competitors. Moreover, the management of the company could follow the merger and acquisition policy in order to overcome the current facing problems.

Threats

It is expected that the company and its management are facing certain threats with respect to the competitive environment and with respect to its current strategies. As the company is dealing with health related products therefore, a minor mistake or negligence could result in serious loss in both financial and non-financial terms as regulatory procedures in Canada are strict. In addition to this, there are numerous substitute products present in the market, which could be serious threat for the company as customers have greater available options and low switching cost. Moreover, it is expected that there will be greater indirect competition in the market, which could also be a serious threat for the company.

Financial Statements

As Heather Larson is concerned about the profitability and feasibility of the business, therefore she wants to make projected financial statements. For this, by using the data given in the case, these financial statements are produced, which are discussed below:..................

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