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Chapter 2
Industry Analysis
History
• The discovery of the vitamins was a major scientific achievement in
our understanding of health and disease. The puzzle of each
vitamin was solved through the work and contributions of
epidemiologists, physicians, physiologists, and chemists. And as our
understanding of the vitamins continues to evolve from the initial
period of discovery, a new evolution is now going to take place, the
combination of both vitamins and candies.
ICANDY, a Cebu based product is one of the business that plans to
revolutionize vitamins.
Classification
• The product is classified as both as a Vitamin and as a
Candy.
• It is classified as a vitamin for the reason that it is an
organic compound and an essential nutrient that an
organism requires in limited amounts.
• It is also classified as a candy because it is a confection
that features sugar as a principal ingredient.
Size
• The business is going locally for now in Cebu City,
Philippines, but may expand nationally in the
future.
Competition
• Competition for the product is little to none since the
product is new in the local markets however globally there
are other competitors. The main competitor right now is
NESTLE which has a strong foundation, size, and influence
globally but locally here in Cebu City; their product has little
to no influence. They however may in the future try to
dominate the market which is seen as a threat by the
business.
Strengths Weaknesses
1. High responsiveness to the demands 1. The product is new and unknown to
of customers. most customers.
2. Attractive to children. 2. Lack of manpower
3.Keeping cost below that of competitors 3. Low popularity to retailers
4. Populated location
5. Very few competitors
Opportunities Threats
1. Adaptive to customer needs, 1. Competitors might try to enter
2. Very high expansion the local markets.
opportunities 2. Currently a small business and
prone to bankruptcy.
PEST ANALYSIS
Political Economic Social Technology
 Trading policies  Medical Trends  Color trends  Intellectual

 Regulatory bodies for  Taxation issues  Media views property issues
the current market  Market Cycle  Brand  Innovation
 Customer drivers  Technology image potential
 Buying access  Patents
Political Factors
• Several aspects of government policy can affect ICANDY. The
increase or decrease in taxes is an example of a political element.
When there is an increase or decrease in taxes, this might increase or
decrease the business costs. Another example is the political stability
of the country which can affect the appeal of a particular local
market. Next is the health and safety laws might restrain the owners
of ICANDY in doing what they want in order to save up costs
Economic Factors
• The main factor to affect is the trend. This product may become a
trend or a fad. The company will make sure that this product will
continue to improve in order to remain in the trend. Trends can be a
good factor to increase of sales which will also increase the goodwill
of the company.
Social Factors
Locally the product is not yet known and may take some time to be
known but with the innovative benefits its popularity will raise quiet
fast.
The social factors would have to put a greater impact on the needs
of technological factors because the more enthusiastic and friendly the
employees are to the customers, have something to do with the most
prevalent online communication today, the social media. It is one of the
many social factors that employees and management empowers to
expand techniques and connects a depiction of the product in an
exciting and youthful way with the arising and advancing of technology.
Technological Factor
For ICANDY, the technological factors that has been implemented
such as using online strategy in promoting a product, data processing
using one centralized computer and data administration that protects
the data integrity can present opportunities and threats but it is vital
for competitive advantage and is a successful driver in globalization.
Products can be marketed in new ways and processes present immense
value to the business. Spending money on he latest technology can be
daunting for some organizations and question such as always come up
in their response to innovation.
Competitor’s Analysis
Existing Competitors
One of the biggest threat is NESTLE. They are known globally and
their products are dominating the market. They are trusted by most
customers due to their history and they have connections in malls
making their products a priority. They have great manpower and are
open to customers in most times even on holidays.
Indirect competitors of the business are other business whose main
products are candies and vitamins only. They take the attraction of kids
away from ICANDY.
Potential Competitors
Since the product is unique and new to the public, many companies
might see this as an opportunity to copy the idea of the product and
take some portion of the market share. Some of the potential
competitors are VOLCO, TREEK, and COMBUS which are foreign
companies seeking to expand their product in the Philippines’ market.

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Chapter 2

 Trading policies  Medical Trends  Color trends  Intellectual

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