Course: Business Strategy
U.S. sales of organic foods and beverages have grown from $1 billion in 1990 to $24.8 billion in 2009. Sales in 2009 represented 5.1% growth over 2008 sales (Industry Statistics and Projected Growth, 2010). These trends are having a significant impact on the food market industry as a whole, and in particular the organic foods markets.
-Provide a discussion of the trends in the organic foods industry and how these trends will impact the organizations that sell organic foods.
-Examine the competitive environment that organic foods can create for an organization and apply Porter's model, providing an analysis of each factor relative to the industry.
-Identify the opportunities and potential threats to the organic foods industry by completing a SWOT analysis.
-How can a competitive advantage be achieved using the strengths and opportunities identified in the SWOT?
Industry statistics and projected growth. (2010, June). Retrieved from Organic Trade Association Web site: http://www.ota.com/organic/mt/business.html
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Trends in Organic Foods Industry
Organic food industry is a worldwide growth industry that is quite profitable. In this industry, organizations produce and sell various categories of products such as food, beverages and supplements. U.S. organic foods have been translated into the retail sales during 1997 to 2008 (Industry statistics and projected growth, 2010, June). Due to increase in competition, retailing organic food companies changed as conventional suppliers of organic food. These companies sold organic food in natural product stores (Whole Foods and food cooperatives) as well as conventional supermarket (Wal-Mart, Costco, Safeway etc). Additionally, trend of standardization of organic foods is also increased in US. Some other trends are also identified such as social networking, sustainable packaging, organic and climate change, animal rights and local and fair trade (Laux & Huntrods, 2012).
At the same time, these organic food trends affected the growth of organic food companies. The growth of these companies has been increased due to increase in the sale of these products. The trend of standardization has increased the quality of organic foods that affected the sale of these products. This trend also promoted safe and healthy organic foods and beverages that is a cause of growing industry in U.S. (Baourakis, 2004). With the help of these trends, awareness about the harmfulness of chemical residues in food products and their impact on health has been increased within the people.
Competitive Environment of Organic Foods
Organic foods create a competitive environment for the organizations those sell organic food ...
The solution assists on discussing on the trends in the organic food industry.