Introduction
Fit Small Business is a delivery and manufacturing service for wholesome organic food. Its main goal is to improve the quality of people’s lives by providing them with healthy food. However, in this market segment, some challenges and risks may prevent the company from achieving its goals. For systematic, sustainable development, an organization needs to practically identify and break down possible business challenges that may arise due to the organization’s activities.
Challenges and Solutions of Fit Small Business
Strong Competition in the Healthy Food Market
The first challenge for the company may be the presence of strong competitors in the market to provide healthy food products. Since the demand for organic products is great enough, many competing enterprises appear in the market (Sharma et al., 2019). The main competitors in the organization are Hello Fresh, Sunbasket, and Green Chef.
A potential solution to this problem for Fit Small Business could be increased differentiation and branding. By developing unique offerings, the company will gain a significant market share because it will differ in the range of products from its key competitors. A strong brand can help a company achieve this goal.
Challenges in Inventory Management and Distribution
The second challenge may be problems with inventory management and distribution. Since Fit Small is a grocery delivery company, coordination and supply chain management should be critical to them. Logistics is an essential tool whose importance will increase as the company grows (Bock, 2017).
The solution to this problem can be technological development and the conclusion of partnership agreements (Yovanno, 2022). The company could invest in implementing an inventory management system to show its real-time performance. In addition, to improve supply and prevent food spoilage, the firm could partner with local farmers and purchase the necessary goods from them directly. Thus, the company can constantly access fresh organic products that do not require long transportation.
Low Customer Interest in Healthy Food Products
The third problem may be the need for more customer interest. Despite the growing market, there is a risk that customers will no longer be interested in the company’s products, preferring to use competitors’ services. This may be due to changing human preferences or economic and socio-cultural factors (Sajjad et al., 2020). Innovative services and intensified marketing can represent the solution to this challenge. For example, Fit Small Business may develop customized diet plans for specific populations. Among the marketing goals, the company can invest in better communication of benefits and distribution of advertising on social networks.
Limited Resources and Rising Costs
The fourth challenge for the company in its activities may be limited resources and increased costs. The company may need a supply of products and their high price, which will result in a shortage of goods in the future and the inability to satisfy customer requests. The solution to this problem can be to increase the efficiency of all elements of the company. The company must optimize its activities to achieve functioning without writing off products by selling everything bought (Chen et al., 2020). In this way, the maximum utility from the spent monetary resources will be achieved, and the problem of scarcity can be solved.
Strategic Management of Fit Small Business
As the CEO of Fit Small Business, I must plan for complex arrangements that can secure strategic deals that benefit the company. For the company to cope with possible challenges, developing a risk resistance plan is necessary. This will help to counter the highlighted problems and run the business more efficiently and profitably (Sharma et al., 2019). The most important strategies for overcoming obstacles are improving marketing, logistics, and circular production. Strategies to overcome these obstacles will help the company grow.
Conclusion
In conclusion, Fit Small is a young company that has just entered the market. To maintain its position and increase the turnover of deliveries, it needs to consider some of the difficulties that may arise during its development. Potential challenges include loss of customer interest, supply issues, limited resources, and increased competition. Strategies developed for each specific problem can significantly facilitate the company’s profitability.
References
Bock, A. (2017). The business model book: Design, build and adapt business ideas that drive business growth. Pearson Business.
Chen, S., Brahma, S., Mackay, J., Cao, C., & Aliakbarian, B. (2020). The role of smart packaging system in food supply chain. Journal of Food Science, 85(3), 517-525. Web.
Sajjad, A., Eweje, G., & Tappin, D. (2020). Managerial perspectives on drivers for and barriers to sustainable supply chain management implementation: Evidence from New Zealand. Business Strategy and the Environment, 29(2), 592-604. Web.
Sharma, Y. K., Mangla, S. K., Patil, P. P., & Liu, S. (2019). When challenges impede the process: For circular economy-driven sustainability practices in food supply chain. Management Decision.57(4), 995-1017. Web.
Yovanno, D. A. (2022). The partnership economy: How modern businesses find new customers, grow revenue, and deliver exceptional experiences. Wiley.