Problem StatementPeter owns a chain of health food stores in the United States. His store specializes in selling organically grown products and health foods to the local niche market. The entry of a new rival into the market reduced the market dominance that Peter's company previously enjoyed. The rival company, an established grocery store, offers similar organic and health products. Relevant Facts Related to the Issue Some of the major factors in declining customer numbers and sales are: Competition: Grocery store chain's entry into the organic and health food sector. The market has reduced the customer base. The competitor sells similar products at a lower price than Peter's store. Due to the high cost of raw materials, Peter cannot lower his prices. Another factor is that the target customer base for Peter's business is limited. Lack of marketing infrastructure and visibility has a negative impact on the business. His store does not currently offer additional services to customers. Turning a Problem into an Opportunity Environmental factors can have a major impact on health food business performance. For Peter to be competitive and in business, he must first determine the factors that contribute to the problem his business is facing. To steer the business in the right direction, Peter will need to identify new strategies to counter current gaps in the way the business is run. Identifying new opportunities in the industry will help Peter explore new avenues of growth for the business. Based on the research findings in the industry, 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 competing products and identifying differences in product offerings can be very helpful. This will allow Peter to identify new products he can stock that will offset his customers' comparison shopping. These new offerings must be consistent with current trends in the health food industry. Supplier: Peter will need to explore the possibility of identifying new suppliers for some of the products he sells. This will give it the negotiating power necessary to reduce the costs of its purchases. Maintaining quality and lowering the supplier price will allow Peter to sell other products in his stores.