Blackmores Business Analysis
Table of content
Strategic business units 3
Internal Environment 4
External environment 6
SWOT analysis 6
Blackmores Limited is an industry leader in both natural health and research, basing its principle activity on the development and marketing of health products and natural supplements; and it has been an industry leader in Australia for more than 70 years. The Company had its beginnings in the 1930s. The company currently has over 150 products, catering for all areas in natural health and vitamins. …show more content…
Figure 3: Key External Drivers
In the uncertainty global economy, pressures of recession in European countries, rising cost of living and low consumer confidence could potentially hold back the revenue. Despite the recession in Europe, in the Asian countries, their economies are healthy and growing rapidly. The University of Sydney forecasts that growth in value within these industries will continually grow at 6.0%, 11.0%, and 20.0% for Malaysia, South Korea, and Thailand respectively.
In the Asian market, there are risks in the VDS market that Blackmores are currently facing including the Asian expansion; for example, trade tariffs, regulatory differences and varying consumer tastes (the University of Sydney).
Blackmores has a strong position in the VDS market with the high market share, good brand image and also gaining brand royalty from customers; however, the company lacks of the experience in the new markets such as Asian countries.
On a broader view, VDS market is one of the fastest growing industries, not only for Australia, but the world. The continuing strong economic growth in Asian countries with the old population growth brings opportunities for Blackmores to gain more market share.