Vitaquest international: identification of relevant uncertainties Essay
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Vitaquest International is a manufacturer of nutritional supplement products based in West Caldwell, New Jersey. It has three major divisions under its wings, all of which produce different nutritional products. As an organization, Vitaquest International has been making its presence felt globally not only through the marketing of its product, but also through charity works. In fact, in 2005, its division — the Windmill Health Products — donated a large quantity of Windmill’s Children Chewable multi-vitamins and Windmill brand adult multi-vitamins to mitigate the long term impact of the tidal wave in South Asia.
As the trend for globalization continues to rise, so is the need to market Vitaquest products in a wider market. However, there are many uncertainties that have to be answered first before the company can expand globally. These uncertainties have be to ironed out first before Vitaquest International can decide whether to grow globally or to limit its market in its current state. Political 1. Will global trend of trade liberalization affect our business? 2.
Will the current political atmosphere in the country encourage the proliferation of our products and services?
3. How does the political direction of the Bush administration affect the whole industry? 4. Will the European Union and other trade groups enact regulations to restrict imports to protect home-grown competitors? The political situation all over the world has direct impact in the positioning of Vitaquest products. First, the trend of globalization will first and foremost open the door to competitors in its local market. This will force the company to go internationally to market its products.
Even the direction of the Bush administration will have direct effect on local businesses; one of those that will definitely be affected is Vitaquest. For example, if the government will keep pushing for war in various countries to promote its interests, both the local and global economies will be affected. In turn, this will affect the markets. If and when globalization of Vitaquest products will push through, how will its overseas competitors react? This may push foreign countries protect their own through the enactment of protective laws against Vitaquest.
Economic 1. Will the global economy affect our business? 2. Will people from all over the world be able to afford our products? 3. Considering the current economic trend in the world market, will we be able to penetrate markets other than the USA and Europe? 4. Will product demand grow on a global basis? Global economy will likewise affect Vitaquest. If the global economy worsens, Vitaquest may reduce its operations and limit the marketing of their products in Western Countries whose people can afford to buy food supplements.
It must be noted that in countries whose per capita income is relatively low, people would rather buy “real” food than food supplements. In other words, taking food supplements will only be a secondary consideration, if it will be considered at all. It is therefore important to look at the global economy before Vitaquest decides to take the plunge in markets other than the U. S. A and Europe. Cultural 1. Will people who are not used to food supplements be open to our products? 2. How will the international community perceive our products? 3.
Will it be easy to explain to non-Americans the advantages of taking our products? Another hurdle that Vitaquest International should be able to overcome is the cultural gap. In many countries, especially in Asia, people are wary about having to take non-food products orally. There must be a massive educational and informational campaign to overcome this gap. Strong resistance to some products may be initially present, so Vitaquest International must be prepared for this. Demographic 1. What percentage of the population in one country will accept our products? 2. Between men and women, who will embrace our products more?
3. What age bracket will welcome our products with more enthusiasm? Vitaquest International should have its target market. It must study the demographics of each country very well so it will know what products may be more accepted there. It must also study the age brackets and gender it will initially target in order to be able to penetrate the market easily. This is very important in order to determine the products it will launch in its target countries. Technological 1. If we happen to expand our market, will the current technology we are using cope up with the demands? 2.
Will there be continuous innovations in technology and product design in order to create more goods that will cater to the various needs that may arise globally? Lastly, Vitaquest International must study the possibility of increasing market demands. If it expands globally, it must be able to cope with the rising product demands. Is it capable to meet these demands? The company has to have the technology to be globally competitive. It must also concentrate on innovating its products because going globally also means meeting various needs that were not present in its old market.