High Success Level for Green Fit, it

¶ … high success level for Green Fit, it is essential for the business to carry out a thorough SWOT analysis for its business. The strengths, weaknesses, opportunities and threats for the Green Fit are discussed under following sections.

Strengths

The primary strength of Green Fit is that it is an organic natural foods drink in Australia that is 100% preservative free and comes in flavours that are rarely available in other brands. It offers almost all kinds of organic juices. Since Green Fit does not have middlemen, this makes Green Fit cost efficient and as a result will be sold at lower prices as compared to the same products available under other health drinks brands.

Another potential strength of Green Fit will be its educational and informative marketing strategy, which aims to position the business as a socially responsible one. Medical experts will be used as brand ambassadors in order to encourage consumers to opt for organic foods over natural foods. Awareness will be spread regarding threats that many conventional foods pose to human health and people will be encouraged not to compromise on their health and life over their pockets.

Weaknesses

The biggest weakness of Green Fit is the fact that organic foods are more costly than conventional foods. Although Green Fit will be selling natural drinks at a lower price as compared to the organic foods available elsewhere in the market, however, the business cannot afford to price its products lower than conventional food items. There are two reasons for this.

Firstly, since the conventional foods are produced using artificial means in order to increase the output, therefore, their yield is higher. As a result they attain economies of scale and therefore, they are cheaper at the point of production. For this reason producers of conventional foods can afford to sell their stocks at lower prices. On the other hand, organic drinks do not use any artificial means and therefore produce their natural yield, which makes it more expensive as compared to conventional foods. As a result organic food producers are left with no choice but sell their stocks at higher prices as compared to conventional food as the profit motive also needs to be taken care of.

Secondly, it is a commonly known fact among the masses that the cost of production for organic foods is higher as compared to conventional foods. Under such circumstances, even if Green Fit somehow manages to price its stocks at a price lower than the conventional foods, then there is a good chance that consumers and pressure groups might become skeptical of the firm's claim of selling high quality organic foods. There is a possibility that question might be raised as to how does the firm afford to price the stocks at lower rates if they are expensive at the point of production.