Innovation is key to any business because it revolves the changing processes or the creation of more effective products and ideas. Every business, therefore, considers it a priority based on real profit possibilities or rather market attractiveness. Market attractiveness describes the interesting profit possibilities which may be acquired by an individual after investing in the available market or the industry. When there is a more significant opportunity for market attractiveness, the potential of the profit to be acquired also increases (Bowtell, 2015). Most companies, however, consider conducting many types of market analysis before entering into a business to weigh the profit potential of the business. The types of analysis may include Porter's five forces, the SWOT, PESTEL, and SMART to mention but a few. For this case, market attractiveness will be argued based on Porter's five forces with the main business idea revolving camel milk for kids and how it will innovate the U.K industry.
There is a high possibility that the introduction of camel milk in the U.K. industry will ensure the existence of stiff competition within the industry. The milk has more proteins and fats when compared with that of a cow. Its cholesterol level is equally lower while the vitamin, mineral, and the immunoglobin contents are higher compared to the milk of a goat or cow. Research shows that the milk is three times higher in vitamin C than that of a cow and ten times higher in iron when the same comparison is made (Alimi, Rekik, & Akkari, 2018). It is thus explicit that its introduction will automatically turn the attention of the consumers from their usual consumption to take on the new nutritious product.
Based on the qualities of camel milk for kids, it is possible that its introduction into the market will innovate the U.K. industry. The understanding of the innovation will be advanced by the evaluation market attractiveness with the use of Porter's five forces. The first force is on the threat of new entrants. The new entrants' increases the level of competition and the existing businesses will always try to defend their market share. The introduction of camel milk for kids will, therefore, be a threat to the already established products considering its nutrition level. It will turn the attention of many business players to start investing in it hence expanding the U.K's industry from within and making it less attractive to the outside investors (Burns & Dewhurst, 2016). The next issue is a threat to substitutes. Substitutes are the products or services that meet the similar need as other products. For our case, the substitute will be kids' milk from cows and goat. They exist to allow the consumers to make a choice. The introduction of camel milk for kids will, therefore, innovate the U.K. industry by allowing the consumers to have an increased domain for making a choice based on quality and the level of nutrition to mention but a few (Appadu et al. 2016).
The third issue in Porter's five forces is the bargaining power of consumers. The bargaining power is determined by high quality, mode of delivery and the cost of a product. Camel milk for kids will, therefore, fit the U.K. industry because it is highly nutritious when compared with other milk products hence increasing its market attractiveness and bargaining rate while lowering that of other substitute products. The fourth force is on the bargaining power of the suppliers. The suppliers can impact the cost of production by altering the prices of the intermediate goods or those of raw materials (Dalken, 2014). Camel milk for kids may, however, not be affected by such because the product is of a high quality thus creating a low necessity for the supplier's products in the U.K. The low necessity for the supplier's products shows that the introduction of camel milk for kids may ultimately lead to their exit from the market. The last issue is on the competitive rivalry. The introduction of camel milk for kids will intensify competition with the already existing businesses hence making the U.K. industry less attractive for other new entrants.
In summary, it is possible that the introduction of camel milk for kids in the U.K. industry will bring about stiff competition hence making the market less attractive. However, when we use Porter's five forces, we find mixed implications with some being based on increasing the market attractiveness while others are supporting the point about competition rivalry. Generally, camel milk for kids is highly nutritious, and in one way or the other, its introduction will bring undesirable implications to the existing business hence leading to intense rivalry, something which will make the market unattractive to other investors.
Alimi, D., Rekik, M., & Akkari, H. (2018). Comparative in vitro efficacy of kefir produced from camel, goat, and ewe and cow milk on Haemonchus contortus. Journal of Helminthology, 1-7.
Appadu, N., Faelten, A., Moeller, S., & Vitkova, V. (2016). Assessing market attractiveness for mergers and acquisitions: the M&A Attractiveness Index Score. The European Journal of Finance, 22(8-9), 732-755.
Bowtell, J. (2015). Assessing the value and market attractiveness of the accessible tourism industry in Europe: a focus on major travel and leisure companies. Journal of Tourism Futures, 1(3), 203-222.
Burns, P., & Dewhurst, J. (Eds.). (2016). Small business and entrepreneurship. Macmillan International Higher Education.
Dalken, F. (2014). Are porter's five competitive forces still applicable? A critical examination concerning the relevance of today's business (Bachelor's thesis, University of Twente).
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