There are not a lot of requirements to create and market a diet plan. Many turn into fads and there are even websites that have compiled these fads for potential dieters to browse and try for themselves (Faddiet.com, 2013). The Academy of Nutrition and Dietetics advises to steer clear of fad diets. They define a fad diet as any that claim one or more of the following: rapid weight loss, extreme quantities and/or limitation, very specific food combinations, rigid menus, or have no need or advise against exercise (Academy of Nutrition and Dietetics, 2012). WebMD also gives advice to avoid dieting that met much of the same criteria (WebMD LLC, 2012). So with many reliable sources advising against diets like Medifast, what is the profit potential for new entrants into the weight loss industry? A Marketdata Enterprises study estimates $61.6 billion in revenues were generated for the weight loss market in 2012 (PRWeb, 2014).
There are seven sections to help determine profit potential for companies thinking of entering this market (Coulter, 2013). Each one creates dynamic challenges to organizations that wish to enter the diet industry.
For the weight loss industry, capital requirements are low. Customers considered “Do-it-yourself Dieters” reached 82% in 2012 (PRWeb, 2014). This category of dieters includes those who follow websites and buy diet books. This portion of the industry can be penetrated with little to no capital. This requirement only increases with the amount of products and support a company wishes to provide their customer. The largest capital requirements come from any niche that provides brick and mortar centers, meal replacements, and nutraceuticals. Capital requirements may be no barrier at all for organizations div...
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...Compromise? Retrieved February 08, 2013, from Food Processing: http://www.foodprocessing.com/articles/2004/53/
Porter, M. E. (1980). Industry Structure and Competitive Stratedy: Keys to Profitability. Financial Analysts Jounal , 36 (4), 30-41.
PRWeb. (2014, February 5). Weight Loss Market in U.S. Up 1.7% to $61 Billion. Retrieved February 7, 2014, from Online Visibility from Vocus: http://www.prweb.com/releases/2013/4/prweb10629316.htm
Tina of Milford, N. (2014, January 22). Medifast. Retrieved from CustomerAffairs: http://www.consumeraffairs.com/nutrition/medifast.html
WebMD LLC. (2012, October 13). Weight Loss & Diet Plans. Retrieved Feburary 5, 2014, from WebMD: http://www.webmd.com/diet/guide/the-truth-about-fad-diets
William Reed, Business Media. (n.d.). Products: Suppliers. Retrieved from NutraIngredients-USA: http://www.nutraingredients-usa.com/Suppliers
In her book Marion Nestle examines many aspects of the food industry that call for regulation and closer examination. Nestle was a member of the Food Advisory Committee to the Food and Drug Administration (FDA) in the 1990’s and therefore helps deem herself as a credible source of information to the audience. (Nestle 2003). Yet, with her wealth of knowledge and experience she narrates from a very candid and logical perspective, but her delivery of this knowled...
This organization belongs to the oligopoly market structure. The oligopoly market structure involves a few sellers of a standardized or differentiated product, a homogenous oligopoly or a differentiated oligopoly (McConnell, 2004, p. 467). In an oligopolistic market each firm is affected by the decisions of the other firms in the industry in determining their price and output (McConnell, 2005, P.413). Another factor of an oligopolistic market is the conditions of entry. In an oligopoly, there are significant barriers to entry into the market. These barriers exist because in these industries, three or four firms may have sufficient sales to achieve economies of scale, making the smaller firms would not be able to survive against the larger companies that control the industry (McConnell, 2005, p.
The script begins strongly. The obesity chart and opening voiceovers set the tone and the audience is easily pulled into this world. Doris’s goal is well defined, but the stakes are not as well defined for Doris, as it is for the consumer. Thus, unfortunately, as the script progresses, it feels more like a history and educational lesson about the food industry rather than a real
Obesity has become an epidemic in today’s society. Today around 50% of America is now considered to be over weight. Fast-food consumption has been a major contributor to the debate of the twenty-first century. Chapter thirteen, titled “Is Fast-Food the New Tobacco,” in the They Say I Say book, consists of authors discussing the debate of fast-food’s link to obesity. Authors debate the government’s effects on the fast-food industry, along with whether or not the fast-food industry is to blame for the rise in obesity throughout America. While some people blame the fast food industry for the rise in obesity, others believe it is a matter of personal responsibility to watch what someone eats and make sure they get the proper exercise.
Repeatedly the news will highlight a story about the obesity epidemic sweeping the nation. Although the news and health experts bombard the common citizen with quick and easy ways to eat healthier and exercise more, the source of the issue is kept hidden behind closed doors. Before placing blame on the eating habits, it’s essential to take a closer look at what is being consumed. With rapid change in the food industry, progress must be met with caution because “The way we eat has changed more in the past fifty years than in the past 10,000” (Pollan and Schlosser). It is easy for the common man to provide the blanket statement of eating “better”, yet few actually proceed to do this. The average American has one of the worst diets in the world although opportunity and variety of options are overwhelming. Food industries are deceiving by masking the true process of how their food is produced. Not only does the eye not see how the food was made, but there is also a false sense of variety in the grocery market. The grossly unbalanced American diets and genetically modified organisms both coexist to create a greater problem than previously thought of.
Obesity in the United State has increasingly been cited as major health issue. Findings from the National Health and Nutrition Examination Survey show that the proportion of adults who are obese has more than doubled from 15% in 1971–1974 to 34% In 2003–2006 for adults 20-74 years.In 1990, obese adults made up less than 15 percent of the population in most US states however by the year 2010 , 36 states had obesity rates of 25 percent or higher and 12 of those states had obesity of 30 percent or higher (CDCP 2012).
... some diet supplements out to people who qualify to use a diet supplement. Then why are many diet products still sold over the counter? These fad supplements are still sold over the counter because they are there for people who want to try out these diets and see if they work. Also they are still being sold because their advertisement tricks customers that if they want to lose those extra few pounds that they cannot get rid of. Fad diets do not work for those people. There is a big debate to whether these fad diets should only be prescribed. If these diets were only to be prescribed by doctors to patients with weight problems many of the dietary supplement companies would suffer and jobs would be lost. However, if the diet supplements were to only prescribed by doctors, many people wouldn’t be putting their health at risk with using over the counter diet products.
Thompson, Arthur, John Gamble, John Gamble, A. III, and Alonzo Strickland. Strategy. McGraw-Hill/Irwin, 2005. 299. Print.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
2. Obesity dramatically increased in the 70’s due to a number of factors. After World War 2, lawmakers, big business and labor leaders, along with many ordinary Americans put mass consumption at the center of their plans for a successful post-war nation. The availability of frozen dinners and a variety and surplus of different foods skyrocketed. In 1977, the US dietary guidelines changed drastically, promoting our diets as mainly carbohydrate based. Over the years, the sizes of certain foods and our portions have blown up. Twenty years ago, an average bagel was 3 inches in diameter and only 140 calories. Today, the size of the average bagel has doubled, now 6 inches in diameter and over 350 calories. The health problems that stem from being overweight go way beyond the ones we usually hear about, like diabetes and heart disease. Being overweight can also affect a person's joints, breathing, sleep, mood, and energy levels. In the U.S. 68.5% of adults are overweight or obese, 34.9% falling under the obese category and 31.8% of children and adolescents are overweight or obese with 16.9% being obese (Overweight and Obesity in the U.S.). Figuratively and literarily, the obesity rate is a growing problem. The total economic cost of overweight and obese persons in the United States and Canada caused by medical costs, excess mortality and disability is approximately $300 billion per year. $80 billion of this portion is due to overweight, and approximately $220 billion is due to obesity. Approximately 90 percent of the total $300 billon comes from the United States. The Trust for America's Healt...
When New Year’s rolls around people swarm into gyms and salad sections of grocery stores. Self-improvement is a respectable thing, but it’s easy to get bogged down with gimmicks and false advertising about “weight loss”. Articles on magazines contradict each other, one saying exercise is the only way to a healthy lifestyle and the other claiming all you need is their new diet plan.
Porter, M. E., 1999. The Five Forces that Shape Competitive Strategy. Harvard business review, p. 80.
According to recent statistics, every year Americans spend about $50 billion on products and services promoted to help them lose weight. Many of the overweight and obese people that join commercial weight loss programs are looking for a quick fix to lose the weight, such as fad diets and dietary supplements that are marketed to burn fat fast. However, many of these diets offer little success or success for a short time, resulting in many gaining the weight back a short time afterwards. Fad diets are “a trendy practice that has widespread appeal among a population. After a period, however, people lose interest in the practice, and it becomes no longer fashionable. People often lose weight while following fad diets, but usually regain much of
Ensign PC 2004, ‘A resource based view of interrelationships among organizational groups in the diversified firms’, Strategic Change, Vol. 13. pp. 125-137.
Each fast food restaurant is now aware of the problem that each nation is currently encountering. Indeed, there is a growing tendency to consume healthy products with low level of acid fats and cholesterol. Therefore, the leading fast food industries, such as McDonalds, Subway, and Jack in the Box adhere to the new international standards to gain a competitive advantage. Although fast food is not out of fashion, people are still striving to buy fast-prepared, but healthy breakfast because of the peculiarities of leading a business life. At this point, all the restaurant start paying attention to the quality of food, healthy dieting, and nutrition to face the problem of obesity and excess weight. In order to understand the difference and similarities between the identified ventures, the attention should be given to such aspects as quality of food, service delivery, and cost of price. Hence, a quick glance at the restaurant policy reveals that all the ventures pay attention to the policy of healthy dieting by promoting nutrition plans, and taking care of the clients’ calorie in-take. However, the difference lies in their pricing policies and service delivery.