Threat of New Entrants
The establishment of new companies in the industry will impact on Nature’s Way Gym in various ways. The profitability of Nature’s Way will decrease significantly. Some loyal customers will be attracted to the new firms. Besides, Nature’s Way may be forced to lower the prices of its products and services in order to remain competitive.
Threat of Substitute products or services
The above might lead to customers of Nature’s Way switching to other firms. Secondly, there might be several substitute products and services in the market that may force Nature’s Way to lower the prices of its products and services. Additionally, the existence of several substitute products and services in the market may demoralize operations in Nature’s way leading to quality depreciation.
Bargaining power of customers
The ability of customers to put the firm under pressure may force the lowering of prices of products and services. If Nature’s Way firm bows to pressure from customers, it may attract several customers.
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Bargaining power of suppliers
Existence of a single supplier of products to Nature’s Way gym may impact on it in various ways. The supplier may sell its products and services at excessively high prices, and this may be a disadvantage to Nature’s Way.
Intensity of competitive rivalry
Stiff competition from other firms may force Nature’s Way to use more funds to enhance advertising. Besides, Nature’s Way may be forced to come up with innovative ideas on how to improve its products and services.
Web 2.0 Strategies
In order to overcome stiff competition from rival firms, Nature’s way firm can adopt online marketing. For instance, through social networking sites such as Facebook and Twitter, the firm can market its products and services. More customers will be attracted. The firm should also capitalize on Google’s Ad, to enhance its marketing. The number of people who use Google on a daily basis is high, and this could help the firm attract more customers when they see information about the firm’s products and services.
