Report: Analysis of a Healthy Nutritional Bar Start-up Business Idea

This report outlines a business idea for a start-up company focused on producing healthy and nutritional bars in the United States. It analyzes the external market environment, including market structure, industrial trends, and the competitive landscape. The report details the product offerings, such as walnut and cereal bars and vegan bars, and assesses the scope of the market, highlighting the high demand for healthy food options due to rising health concerns and obesity rates in the US. The market structure is identified as monopolistic competition, and the report discusses the degree of competition, availability of substitutes, and potential barriers to entry. It also examines the elasticity of demand, industry trends, and consumer behavior, concluding that the start-up should capitalize on the high demand for healthy alternatives to gain a competitive advantage. The report includes references to support its analysis and provides a visual representation of food consumption patterns in the US.

Running head: BUSINESS IDEA
BUSINESS IDEA
Name of the Student
Name of the University
Author Note

1BUSINESS IDEA
Executive summary
This paper will talk about a business idea which is to open a start-up company that will
produce healthy and nutritional bars for the people of United States of America. The paper
will provide the details that are necessary in order to operate in the market like the market
structure and industrial trends and will provide an insight about the current situation of the
external market that may impact the start up.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Product description.................................................................................................................3
Scope of the market................................................................................................................3
Market structure.....................................................................................................................3
Degree of competition and the availability of substitute.......................................................3
Barriers...................................................................................................................................4
Potential demands..................................................................................................................4
Elasticity.................................................................................................................................4
Industry trends........................................................................................................................4
Conclusion..................................................................................................................................5

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Introduction
Start up is considered to be a company that s initiated by entrepreneurs or individual
founders in order to search scalable and repeatable business models (Sedláček and Sterk, p.
3183). This paper is going to focus on a start up business which will produce healthy and
nutritional bars in the market and analyze the external environment to assess the profitability
of the start up in the current market.
Discussion
The start up will focus on healthy and nutritional bars
Product description
Walnut and cereal bars- This bar is an excellent addition to the breakfast meal which will
help satisfy your taste buds and keep you energetic throughout the day. This bar will suffice
your hunger in a healthy way.
Vegan bars- This is for all the animal lovers who are compromising on protein intake. This
bar has the correct amount of protein which a body requires and has ingredients like raisins,
peanuts and protein powder.
All these bars will be high protein and is a healthy snack which will help the customers and
the people of the country to adapt to a healthy lifestyle without compromising on taste.
Scope of the market
The people of United States of America have been suffering from obesity and other
issues related to lifestyle and health because of their consumption of unhealthy food at a large

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rate. The rate of obesity in young children has been increasing which can later result in
serious heart diseases (Preston et al, p. 951). The seriousness of this issue has resulted in
people adapting to healthy lifestyle by changing their diet in order to stay fit. America has
been trying to curb this issue and has been promoting healthy life choices for the betterment
of the people (O’Reilly and Benson, p. 16). Thus the demands for healthy food are high
which will help healthy and nutritional bars thrive in the market.
Market structure
Monopolistic competition is witnessed in this market. There are many companies that
are relatively small that compete against each other in the market. All the brands and
companies sell similar products but are slightly different which may be in terms of their taste
or quantity offered and many more. Healthy and nutritional bars will have to face immense
competition and in order to grow have to be innovative and come up with various flavors that
will attract the customers.
Degree of competition and the availability of substitute
With the change in life the demand of nutritional bars are high. There are many
companies that are currently producing nutritional bars however according to reports there
are about 1 or 2 nutritional bars that are worth the money of the people and fulfill the demand
of the people (Business Insider). Thus the competition is still relatively low.
Nutritional bars are available in departmental stores and also available online. Due to
the demand of nutritional bars there are many companies coming up with these bars however
very few are authentic and good for health thus make the availability of substitute also low.
Barriers

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One of the barriers that nutritional bars in the market generally face is the lack of
scope of innovation. The product is merely same with minor changes that are available in the
market.
Potential demands
The potential demands of nutritional bars in the US currently are very high. People in
the US are trying to eat healthy and as a substitute of the junk food they consumed, they are
turning to healthy snacks that will help the customers be healthy and satisfy their demands
(Henchion et al, p. 5).
Elasticity
The demands of nutritional bars are currently high because of the detrimental
situations of people because of their consumption of unhealthy food. Nutritional bars are
slowly becoming a necessity as most people are munching on this when they are hungry and
these are available almost of everywhere. The demand of the product will not change as
health is an important factor for all the people in the US and they have become fitness
conscious. However, changes of the demand of the product may be seen if the prices are too
high as these products are not wholesome meals.
Industry trends
The trends of the industry need to be determined to predict the future of the start up in
the market.
Consumer behavior- While purchasing nutritional bars, people mostly think about the
ingredients present and the quality that fulfils their demands and keeps them fit in comparison
to the price of the product.

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Employment- The employment level is pretty high in US and majority of the people have the
capacity to buy nutritional bars on a daily basis as a quick bite.
Competition- There is many competitors in the market where very few are well established
which makes competition relatively low.
Conclusion
Healthy and nutritional bars are in high demand in the US market because of the poor
health conditions because of consumption of junk food. The start up needs to take advantage
of the demand of the product in the market and come up with something unique which will
give the product a competitive advantage in the market and will help the start up grow into a
big company in order to gain profits and acquire a positive position in the market.

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Reference
Business Insider. "We Tried 12 Of The Most Popular Protein Bars On The Market - This Is
The Only One Worth Buying". Business Insider, 2019,
https://www.businessinsider.in/We-tried-12-of-the-most-popular-protein-bars-on-the-
market-this-is-the-only-one-worth-buying/articleshow/62865913.cms.
Health.gov. "Current Eating Patterns In The United States - 2015-2020 Dietary Guidelines -
Health.Gov". Health.Gov, 2019,
https://health.gov/dietaryguidelines/2015/guidelines/chapter-2/current-eating-patterns-
in-the-united-states/.
Henchion, Maeve, et al. "Future protein supply and demand: strategies and factors
influencing a sustainable equilibrium." Foods 6.7 (2017): 5
O’Reilly, Karen, and Michaela Benson. "Lifestyle migration: escaping to the good life?."
Lifestyle Migration. Routledge, 2016. 11-24.
Preston, Samuel H., Yana C. Vierboom, and Andrew Stokes. "The role of obesity in
exceptionally slow US mortality improvement." Proceedings of the National
Academy of Sciences 115.5 (2018): 957-961.
Sedláček, Petr, and Vincent Sterk. "The growth potential of startups over the business cycle."
American Economic Review 107.10 (2017): 3182-3210.

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Appendix
Fig: Food consumption patterns of the people of United States of America
Source: (Health.gov)