MARK 101, T1: Blackmores Market Analysis and Competitive Review

This report provides a comprehensive market analysis of Blackmores Limited, a prominent health supplement company. It begins with an executive summary and an introduction outlining the report's objectives, which include analyzing Blackmores' competitive environment in the New Zealand multivitamin market. The report then presents a detailed SWOT analysis, identifying the company's strengths (e.g., strong brand image, large product portfolio), weaknesses (e.g., less spending in R&D), opportunities (e.g., increasing health consciousness), and threats (e.g., competition). The analysis also acknowledges the limitations of a standard SWOT analysis and proposes a weighted SWOT approach. Furthermore, the report identifies and analyzes Blackmores' key competitors, including NOW Foods, Swisse, Integria Healthcare, Sandhu Products, and Healthline, providing insights into their market positions and revenue. The conclusion summarizes the key findings, emphasizing the importance of strategic decision-making and adapting to the dynamic business environment, highlighting Blackmores' strengths in research and education.

Running head: MARKET ANALYSIS OF BLACKMORES
MARKET ANALYSIS OF BLACKMORES
Name of the Student
Name of the University
Author Note

1MARKET ANALYSIS OF BLACKMORES
Executive Summary
In this report, the aim will be to learn about the macro environment of Blackmores Limited,
along with the SWOT analysis of them and evaluating the competitors of the company. The
SWOT analysis will help the identify the competitive advantage as well as to develop the
strategic approaches in the contemporary medicine industry.

2MARKET ANALYSIS OF BLACKMORES
Table of Contents
Introduction................................................................................................................................3
SWOT Analysis of Blackmores.................................................................................................3
Strengths (Internal Strategic Factors).....................................................................................3
Weaknesses (Internal Strategic Factors)................................................................................4
Opportunities (External Strategic Factors).............................................................................4
Threats (External Strategic Factors).......................................................................................5
Limitations of Blackmores Limited SWOT Analysis............................................................6
Weighted SWOT analysis of Blackmores Limited................................................................6
Competitors of Blackmores Limited......................................................................................6
Conclusion..................................................................................................................................7

3MARKET ANALYSIS OF BLACKMORES
Introduction
In this report, the aim will be to analyse the competition of Blackmores in the
marketplace of multivitamin products in the country of New Zealand. Five key competitors
will be analysed, along with the rankings of them. The strengths as well as the weaknesses of
the competitors of the Blackmores company will be analysed in this report. Blackmores
Limited is a company from Australia founded more than 85 years ago. It is from the health
supplement industry. Maurice Blackmore was the founder of the company. The company
manufactures a broad range of vitamin, mineral as well as herbal supplements or additives.
The company has near about 900 employees, and the products of the company are sold in 17
different markets across the Asia Pacific region. The company was awardee as the Most
Trusted Brand for vitamins and supplements in the country of Australia (Chitakira et al,
2018).
SWOT Analysis of Blackmores
Being one of the leading companies in its sector, Blackmores Limited has a number of
strengths under it. These strengths not only help the company to save or hold the market
share which they have already in their existing market, but also to penetrate into the new
market of New Zealand. Careful examining the market and proper analysing and reviewing
the situations. The company follows a proper interactive process within the departments of
marketing, finance, operations, management information systems and strategic planning
(Phadermrod, Crowder & Wills, 2019).
Strengths (Internal Strategic Factors)
Huge distribution and reach
Low cost structure
String relationship in dealer community
Strong financial position
Large asset base
Return on capital expenditure
Automation
Presence of skilled labour force
Diversified workforce
Entering new marketplaces
Strong social media presence
Presence of interactive website

4MARKET ANALYSIS OF BLACKMORES
Large product portfolio
Establishment of strategic partnerships
Brand image in the marketplace
Intellectual Property Rights
Location of the Business
Maintenance of the quality of the product
Weaknesses (Internal Strategic Factors)
Less spending in research and development
High Day Sales Inventory
Rented Property
Low current ratio
Liquidity Problems
Cash flow problems
Limited integration
Diversification in the workforce
Absence of proper market research
High employee turnover rates
Lower budget for quality control
Lack of legal experience
Reliance in few products
Low worker morale
High centralized decision making
Haphazard manner of performance appraisal of the employees
Leaving of qualified employees
High workload
Opportunities (External Strategic Factors)
Usage of Internet globally
Development of E-Commerce in the marketplace

5MARKET ANALYSIS OF BLACKMORES
Usage of social media
Improvement in the technology
Increase in the household income
Increase in population
Low rate of inflation
Low rate of interest
Improvement in the transport industry
Reduction in tax policy rates
Subsidy on the sale of environmentally friendly goods
Development of tourism
Increase in the number of skilled workers
Increase in the spending capacity of the consumer
Opening of new niche markets
Increase in globalisation
More health consciousness of the consumers
Reduction in the barriers of trade
Loosening of the regulations
Green government drive
Threats (External Strategic Factors)
Technological improvement by the competitors
Increase in the bargaining power of the suppliers
Threat of new entrants in the marketplace
Increase in the competition within the industry
Fluctuation in the exchange rates globally
Political uncertainties in the business performing countries
Unstable financial and economic environment
Changes in the taste and preferences of the consumers

6MARKET ANALYSIS OF BLACKMORES
Changes in the regulations on international trade
Increase of the availability of substitute products
Increase in the price of the fuel
Increase in the promotional activities by the competitors
Constant improvement in the technological aspects
Limitations of Blackmores Limited SWOT Analysis
The major drawback in this case is that there can be a flap of strengths and weakness
of the company, where a single factor cab be both a strength and a weakness. For example, a
large number of outlets can be a strength in an improving or growing economy or a weakness
if the economy is going through a deflation or recession. The matrix or source is not a limit or
deadline as it does not show how to achieve the aims and objectives of the company. It must
be used as a starting point by the company to make strategic decisions, to have a competitive
advantage over its competitors. The assessment or evaluation done through the above SWOT
analysis is a fixed one and does not take the alterations or changes into consideration that take
place in the competitive business environment. The factors discussed above in the SWOT
analysis may be overstated or overemphasized by Blackmores Limited. There are certain
interrelationships between the internal and external factors of the company that the SWOT
analysis neglects or overlooks (Gürel & Tat, 2017).
Weighted SWOT analysis of Blackmores Limited
In response to the above mentioned limitations, or the evaluation of the normal
SWOT analysis, it can be said that a weighted SWOT analysis can be conducted for
Blackmores Limited that will include allowing weightage to each of the strengths and
weaknesses specified in the SWOT analysis for Blackmores Limited. It also includes the
estimation of the probability of an event happening in the external environment. This will
help the managers to focus on the important factors, and give less consideration to the less
important ones. Apart from this, Blackmores gets the benefit from the capability or capacity
of the amount of business expansions they have done worldwide, where it is successful in
continuing its business operations in the places of East Asia, mainly in China. The company
has hugely increased the supply of stock in Asia without compromising on the unmatched
quality of the products. The company has the added advantage of tasting the revenue growth
for 10 years consecutively (El-mani et al, 2014). As per the external analysis, the advantage
of cost saving nature, mainly in the lower customs, which is headed by the trade agreement
between Australia, New Zealand and China, who are the main sources of the international
buyers, and they all are highly valued by the company. Apart from this, the reduction in the
value of Australian dollar will help the international buyers to purchase more products than
the amount they usually buy. This will help Blackmores to reduce the cost of their products
and increase the profit earning of the company, to have a competitive edge over its
competitors. High trust in the brand of the company also helps Blackmores to grow their
business globally.

7MARKET ANALYSIS OF BLACKMORES
Competitors of Blackmores Limited
1. NOW Foods – This company is regarded as one of the top competitor companies of
Blackmores. NOW Foods was founded in the year of 1968, and having its headquarter in
Bloomingdale, Illinois. The company has its presence in the Health Care Distributors
industry, and provides a tough competition to Blackmores Limited, though they earn less
revenue than that of Blackmores, which amounts to $438.6M.
2. Swisse – Another top competitor of Blackmores with a ranking of 2nd in terms of rivalry,
Swisse was founded in the year of 1969, and having its headquarter in Melbourne, Victoria.
The company competes in the industry of Health Care Services, and have 768 less employees
than what Blackmores have.
3. Integria Healthcare – Regarded as the Blackmore’s number 3 rival in the industry, Integria
Healthcare was founded in the year of 1951, at eight Mile Plains, Queensland. The company
is present in the sector of Health Care Facilities. The company earns a revenue which is
$344.1M less than that of what Blackmores generates.
4. Sandhu Products – This company provides herbal products which is manufactured through
the help of Ayurveda and modern science. The company is based in Livermore, California.
Though the company produces products based on Ayurveda, they still provide a good amount
of competition to Blackmores.
5. Healthline – Ranked as the 5th rival company of Blackmores, the company was founded in
the year of 1999, and the headquarter is in San Francisco, California. The company provides
information regarding health information digitally. This company also provides a tough
competition in supplying of the health information digitally (Wang, 2018).
Conclusion
From the above report, it can be stated that the major drawback in this case is that
there can be a flap of strengths and weakness of the company, where a single factor cab be
both a strength and a weakness. The matrix or source is not a limit or deadline as it does not
show how to achieve the aims and objectives of the company. It must be used as a starting
point by the company to make strategic decisions, to have a competitive advantage over its
competitors. The assessment or evaluation done through the SWOT analysis of Blackmores
Limited stated above is a fixed one and does not take the alterations or changes into
consideration that take place in the competitive business environment. The factors discussed
above in the SWOT analysis may be overstated or overemphasized by Blackmores Limited.
The company treasures or delighted by itself on the continuous investment in the field of
research and healthcare education by the help of the effort in BioCeuticals and Blackmores
Institute. All the information as well as proof discussed in this report reflects a huge and
strong leading position and helps in acquiring brand reputation in research and education
field.

8MARKET ANALYSIS OF BLACKMORES
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