There are different ways the companies can compete in the markets. The way they do that defines how the company is organized. One of the ways of competing is from the operations point of view. In that case they have to be very efficient in their operational costs because one of the key factors for their success is going to be the price.
Talking about the nutraceutical industry, in this category one example would be those manufacturers of raw materials and finished products who produce in countries with lower labour costs. Another example would be traders of raw materials or finished products who stock a wide range of products and based on big volumes can offer better prices than others.
Another way of competing in the markets is based on a superior product. Apple is a good example. But if we think about the nutraceutical industry, in this model, the price is not the key factor but other aspects like quality, efficacy, safety,... There are many companies, again I’m talking not only about raw materials but also finished products, that want to differentiate their proposal from the quality point of view. They spend a lot of resources in a factory that can meet all the quality standards (GMP, ISO, …), in very good testing equipment and in some cases even doing their own clinical trials to prove their product is superior to their competitors.
Finally, there is a third way of competing based on a customer centric approach. The best example is Amazon. In this case the most important is the customer and their needs because that is what defines the offer and also conditions the way the company is organized. In organizations focused on the customer factors like creativity, flexibility, custom made products and services are crucial. It doesn’t mean that any price would be accepted by the customer or quality is irrelevant. Not at all, quality must be there and price has to be reasonable, but there is something even more important that is to understand that customer needs may change along the time and need to be satisfied. This is the direction Monteloeder wants to go. For that purpose partnership relationship with the customers is very important.
Ignacio Cartagena (+)
Vice President & Sales
Related articles
https://www.monteloeder.com/blog/2019/02/helpers-vs-blockers-or-why-attitude-is-the-key-of-success-for-any-customer-oriented-company/
https://www.monteloeder.com/blog/2018/06/will-digital-health-really-save-money-in-health-spending/
