A SWOT analysis a PESTLE analysis and a Porters Five Forces

A SWOT analysis, a PESTLE analysis and a Porter\'s Five Forces analysis for BIOTECH. You will then discuss the relationship between these assessment tools and the company\'s vision statement and mission statement in developing a strategic plan.  Lastly, you will provide a convincing argument as to why the new project meets the strategic plan and why Biotech is well positioned for the future in the nutraceuticals and supplements market.

Valerie Harper has often been responsible for the development of new products based on what marketing considers high target markets. Valerie has recently been handed the research results on Biotech\'s customer demographics. Based on the research, the Marketing Department would like to see Biotech develop products geared toward the baby boomer market.

From reviewing the research, Valerie noted that Biotech has done little development of the over 50 customer demographics. The current Biotech line has a few joint supplement products and vitamins targeted toward this age group but nothing more. Valerie researched the trends and found high blood pressure, Type 2 diabetes and Alzheimer\'s/dementia were a few of the major health concerns for the over 50 customers. Further research revealed clinically proven effects of hibiscus tea on reducing blood pressure. This finding led Valerie to consider developing a product that was all-natural, good tasting, and competitive with existing teas. The tea would be pre-made and packaged in paper cartons with coated sealant. The plan is to promote the tea as natural products for green accountability. The tea container would include a straw so potential tooth erosion from the acidic tea could be minimized.  

Valerie also thought about other products that might be appealing to baby boomers. She came across several ideas. The first is a protein bar that was made with coconut, dark chocolate, almonds, and blueberries. The bar would contains all-natural products that would increase the protection of brain function through protective antioxidants, thus protecting against dementia and Alzheimer\'s. A second bar would contain natural herbs and would be developed with help from a vendor located in India, which helps lower blood sugar in Type 2 diabetes.  

Valerie named the test line Boomers Best Bets for the purposes of development. Having come up with samples of the products, costs and overall descriptions of the products, Valerie and the head of marketing were now ready to approach the Strategic Planning Committee with their new product ideas. Valerie put together a team including a person from Marketing, Production, and Quality Control to review the products and decide how to position the products for acceptance by the Strategic Planning Committee.

Solution

SWOT ANALYSIS:

Every business tries to create and rule out its strengths and weaknesses and then work to work on it. SWOT analysis is used by business houses so as to know if they are competitive enough and what kind of external threat is harming their progress. S: Strength W:Weakness O: Opportunity T: Threat. The SWOT analysis for BIOTECH is as follows:

S:(Strengths) focus on what are the plus points of the company and on what grounds they can compete with others in the market. After identifying strengths one can easily rule the market and excel in the field of its business. Following are the strengths of BIOTECH:

W:(Weaknesses) focuses on what are the weak points of the company that can possibly result into its downfall in future. Following are the weaknesses of BIOTECH:

O: (Opportunity) focuses on the opportunity one can grab from the market and then work on it to overcome its weakness. Following are the opportunities with BIOTECH:

T: (Threats) focus on what in the market can harm the industry and result in its downfall. One should use its strength to overcome the threats available. Following are the threats for BIOTECH:

PESTLE ANALYSIS:

P: (Political) focuses on the political influence on the BIOTECH and how it can harm the industry in its working. Following are the political factors that influence on BIOTECH:

E: (Economic) focus on the economic factors that influence the working of the company. Following are the economic factors that influence on BIOTECH:

S: (Social) focuses on the social aspects that affect the demand for the company products. Following are the social factors that influence on BIOTECH:

T: (Technological) focus on the changes in the technology that can influence the working of the company. Following are the technological factors that influence on BIOTECH:

L: (Legal) the factors that show how the company will operate and frame out rules for same. Following are the legal factors that influence on BIOTECH:

E: (Environmental) includes the ecological and environmental aspects that affect the working. Following are the environmental factors that influence on BIOTECH:

PORTER\'S FIVE FORCES ANALYSIS:

It is a framework and a structure which is prepared in order to judge the level of competition present in the market. Porter developed this five force model and includes five aspects that affect the business:

1. Threat of new entrants: The biggest threat for any BIOTECH company is the entry of other company in the market. New entry will distribute the market and will deviate the customers flow as well.

2. Threat of substitutes: new kind of products can be launched by any other company dealing in substitute goods. The presence of substitute goods will lower down the level of profits that could have been earned otherwise.

3. Bargaining power of customers: The influence of customers on the company affects the sale. The level of bargaining power of the customers can influence the sales of the company and lower down the revenue.

4. Bargaining power of suppliers: the resources are bought from the suppliers and the business is influenced by the level and strength of the suppliers to bargain with the business.

5. Industry Rivalry: the intensity of the level of competition and rivalry present within the industry will influence the working of the business. The company must be aware of its rivals, their policies and strategies.

RELATION BETWEEN ASSESSMENT TOOLS & BIOTECH VISION AND MISSION STATEMENT IN DEVELOPING A STRATEGIC PLAN:

The vision of BIOTECH is to serve the corporations dealing in life sciences for their growth and development. The mission is to serve the clients the customers with quality and healthy products within the best possible time available. The assessment tools help the company to analyze their competition in the market and frame out plans to compete in the market. The assessment tools helps in the development of strategic plans for the company.

With the help of SWOT analysis the strengths, weaknesses, opportunities and threats of BIOTECH can be framed out and plans can be made to overcome threats and weaknesses. Moreover PESTLE analysis can help in understanding the effect of political, economical, social and technological factors on the business with the help of which strategies can be framed to match up with these factors. And the Porter\'s five force model can help in knowing what threats are attached to the entry of new firms, industry rivalry, bargaining power of suppliers and customers on the business. All these plans help in the development of appropriate plans matching with the strategies of the company.

The new projects as stated in the question are related to the creation of healthy and herbal products for old aged people and products full of nutrition for kids. The strategic plan is well fit with the new project as market demands new and ever changing products with additional benefits from time to time. The plan aims at providing high quality and herbal products for the customers which will help BIOTECH deal with the competition, attract large number of customers, satisfy the customers and earn more revenue by generating more sales. The assessment tools will help BIOTECH in ruling the supplements market as the team has well in advance analysed the strengths, weaknesses, opportunities, threats, political, legal, economic influence on the company that will help BIOTECH in achieving its goals, strategies and rule the supplements market.