Problem StatementPeter owns a chain of health food stores in the United States. His shop specializes in selling organic produce and natural foods to the local niche market. The entry of a new rival into the market reduced the dominant position previously enjoyed by Peter's company. The rival company, an established grocery store, offers similar organic and healthy products. Relevant Facts Related to the Problem Some of the major factors behind the decline in customers and sales are: Competition: Grocery store chain's entry into the organic and health food market has cut into the customer base. The competitor sells similar products at a lower cost than Peter's store. Due to the high costs of raw materials, Peter cannot lower his prices. Another factor is that the customer base Peter's company caters to is limited. Lack of marketing infrastructure and visibility has a negative impact on business. His shop does not currently offer additional services to customers. Turning a Problem into an Opportunity Environmental factors can have a significant impact on the performance of your natural foods business. In order for Peter to be competitive and operate, he should first determine the factors that contribute to the problem his company is facing. Steering the company in the right direction will require Peter to identify new strategies to counter current shortcomings in the way the company is run. Identifying new opportunities in the industry will help Peter seek new avenues for business growth. Based on industry research findings, Peter can definitely turn the problem he is facing into an opportunity. Here are some solutions that will help Peter retain existing customers and grow his business: Competition/Competitive Analysis: Competition can sometimes be good for business. Analyzing competitor products and identifying differences in product offerings can be very helpful. This will allow Peter to identify new products to stock up on that will offset any comparison shopping by his customers. These new offerings will need to be in line with current trends in the natural foods industry. Supplier: Peter will need to explore the possibility of identifying new suppliers for some of the products he is selling. This will give it the bargaining power needed to reduce its procurement costs. Maintaining the quality and lowering the supplier's price will allow Peter to sell more products in his stores.