Myprotein is a sports nutrition brand founded in the UK in 2004. The company works with its partners to validate products testing. Myprotein offers products that adhere to the quality assurance specifications. It ensures that it promotes consumer choice and maintains trust in the sports nutrition industry, thus gaining a high competitive advantage. Therefore, the case study provides the external, internal, and competitive analysis of Myprotein.
Myprotein’s Current External Environment
The government influences an organization or a given industry growth rate. Factors include trade tariffs, taxation policies, and political stability. Government legislators and regulators have heightened the scrutiny of the sports nutrition market following the increased rates of health risks and unfair athletic advantages (“About Us”, 2022). Myprotein Company in the United Kingdom faces increased government enforcement actions towards producing and selling sports nutrition diets.
Economic Factors
Economic factors directly impact financial performance, affecting the company and its profitability. The company promised customers’ a discount of 60% during a monthly sale and the Advertising Authority realized that Myprotein offered only an 8% discount on total items available for purchase (Chu, 2017). Hence, the company has to provide discounts for purchases on the monthly sale, an issue that can reduce its total annual revenue.
Social Factors
Social factors are environmental issues such as the notion of a family, friends, and a reference group that affect consumers’ perception of the market and track emerging trends. The reference group influences the attitudes and perceptions of new buyers. Buyers with ‘salmonella’ experience in Myprotein’s products give negative feedback about the supplements (“About Us”, 2022). Therefore, the feedback reduces the company’s sales rate because of the bad reputation.
Technological Factors
The technological innovation and development rate impacts a market and industry operating within. Technological factors include research and development, automation, and current or mobile technology changes. Inadequate technical skills and devices hinder Myprotein’s ability to test, grade, and evaluate sports nutrition products for consumers (“About Us”, 2022). The company has limited tech knowledge to monitor athletes’ health and performance markers to advice about best products.
Legal Factors
Legal analysis determines the external laws that affect the business organization and the company’s internal regulations. Myprotein faces challenges concerning the ingredients used in manufacturing dietary supplements. The FDA warns against the manufacture and sale of drugs that help users’ blood sugar or raise total and free testosterone levels (“About Us”, 2022). Hence, these issues create regulatory issues, and the company can face lawsuits, affecting business growth.
Environmental Factors
Environmental factors influence the surrounding environment and impact of ecological aspect. The ecological factor affecting Myprotein is the increased food waste generated during supplements production, storage and delivery. The landfill problem is another factor affecting biodiversity as greenhouse gas emissions become an irreparable issue of climate change (“About Us”, 2022). Therefore, it affects humanity and changes buyers’ preferences and trust in the company.
Myprotein’s Internal Analysis
A solid strategy of a company is the vision, mission, and core values. Myprotein produces and sells extensive existing products, and it ensures that it specializes in a selection of organic goods. Therefore, Myprotein only focuses on providing extensive products at affordable prices, targeting a highly competitive market niche (“About Us”, 2022). Hence, it fails to develop a substantial competitive advantage to improve its profit rate.
Structure
Everyday activities are challenging to carry out without a solid framework. Myprotein’s marketing structure is limited and strict even though the company is a huge business. The company receives payments directly for the purchased goods with no additional prices. Myprotein lacks retail shops; hence, it sells its products through the company’s website (About Us”, 2022). Thus, the company’s weakness is the small structure; its market reach is narrow.
Systems
Systems in every organization refer to processes and procedures followed to achieve set goals. Myprotein has a poor working system in the development, testing, evaluation, storage and delivery processes; hence, it offers non-quality goods and services (Myprotein is rated “excellent” with 4.4 / 5 on Trustpilot, n.d.). The company provides products and services to only one target group due to a lack of skilful staff to focus on innovative measures.
Shared Ideals
The McKinsey consultants developed the concept of the shared ideal to help marketers evaluate the effectiveness of a business. A workforce that embraces shared values helps employees have common working attitudes and principles that govern their performances. Myprotein limits its employees from establishing strong teamwork (About Us”, 2022). There is no room for shared ideas among employees since the company lacks an effective communication process and diversity.
Skills
Skills are employees’ abilities and competencies to perform tasks. Myprotein’s staff lack appropriate production and service skills to meet end-users ‘ demands. The company lacks effective communication skills upon employee-employer and employee-customer interaction (Myprotein is rated “excellent” with 4.4 / 5 on Trustpilot, n.d.). Therefore, Myprotein fails to achieve its goals due to a lack of training programs to help improve workers’ communication, production, and service skills.
Style
Managerial style is the specific method adapted in companies to achieve the set goals. The organizational culture determines the decision making, planning, arranging, and controlling activities (Kumar, 2019). Therefore, Myprotein management is non-participatory as employees complain of a lack of diversity management and disrespectful leaders, a problem that affects their service to customers (“Myprotein,” n.d.). The hostile working environment limits employees’ abilities to achieve Myprotein’s goals.
Staff
Employees, the methods used to find, hire, train, and keep them are part of the administrative staff that meet customers’ interests. Customers complain that workers lack focus on buyers’ interests, especially for faults in their products (Myprotein is rated “excellent” with 4.4 / 5 on Trustpilot, n.d.). Myprotein needs to implement a new marketing strategy like offering discounts to attract new customers and increase sales.
Bodybuilding.com
The company’s strength is its brand equity developed through improved reputation and brand-customer loyalty. Its resource is BodySpace, whereby social media network centred on a goal-oriented subject, such as health and fitness, is vital (Schall, 2019). The future objective is to retrench and rebuild BodySpace using the available resources. The company focuses on a domestic exporter strategy to centralize its operations within the United Kingdom.
Bulk.com
BulkTM is the top seller of bodybuilding supplements and sports nutrition, including protein, creatine, vitamins, fat loss, and other products. The company uses its opportunities to meet visitors’ expectations and capture their interest. Approximately 70 publishers partner to advertising bulk.com products (“myprotein.com Competitive Analysis, Marketing Mix and Traffic – Alexa”, 2022). Bulk.com aims to adopt global expansion initiatives to become the world’s largest brand.
Holland and Barrett
Holland and Barrett offer nutritional supplements, and it use the new same-day click and collects service to satisfy its customers. The traffic source results in 42.5% with 1.9k referral sites. Approximately 51 top publishers provide traffic to hollandandbarrett.com and advertise its products (“Myprotein,” n.d.). The company aims to franchise its products across the globe to meet the demands in the sports industry.
References
About Us. Myprotein. (2022).
Chu, W. L. (2017). Sports supplements firm MyProtein called out over ‘misleading’ ad claims. nutraingredients.com.
Kumar, S. (2019). The McKinsey 7S Model helps in Strategy implementation: A Theoretical Foundation. Technical Journal of Management Studies, 14(1). myprotein.com Competitive Analysis, Marketing Mix and Traffic – Alexa. Alexa.com. (2022). Web.
Schall, J. (2019). What is Bodybuilding.com’s future? Medium.
Myprotein is rated “excellent” with 4.4 / 5 on Trustpilot, (n.d.). Trustpilot.
Myprotein. (n.d.). Working at Myprotein: Employee Reviews | Indeed.com.