As a start up company, Bio Fil Inc.faces some competitions and they are identified below
Competitive Analysis
1. Electronic Cigarettes
A number of electronic products, such as electronic cigarettes (e-cigarettes), electronic cigars (e-cigars), and electronic pipes (e-pipes), are being introduced in the marketplace in recent years. Electronic cigarette uses are on the rise in the United States and it is expected to continue rising over time.
However, electronic cigarettes have many set backs and that’s why it has not hurt the cigarette industry much since its introduction to the market:
- Electronic cigarettes are not safe. Defective battery can explode or if improperly used.
- E Liquids are very poisonous, especially to toddlers and children, who might drink the liquid because of the pleasant smell.
- Electronic cigarettes don’t deliver the “buzz” that all smokers want compare to conventional cigarettes.
- Electronic cigarettes are expensive.
It is important to note that the high percentage of smokers in the world are middle and low income people. For many of the smokers, buying one electronic cigarette could equal a few months of their income. As a result, the volume of electronic cigarette use is very low in the third world countries.
2. Current Cigarette Filter Manufacturing Companies
The company will face competition from existing cigarette filter manufacturing companies, who will fight to retain their market shares. However, most competing companies do not have a filter that is biodegradable like Bio Fil Inc does.
Bio Fil Inc. will capitalize on its competitors’ weaknesses by building on the following strengths:
- Unique filter that is protected by the patent.
- Reduce costs as much as possible to keep its price competitive and to increase investor’s profit.
- Knowledgeable management team.
3. Cigarette Companies
To convince cigarette companies to switch to Bio Fil Inc.’s degradable filter, the Company will:
- Keep prices very competitive to what they are paying now.
- Show that our biodegradable filters benefit cigarette companies in terms of costs and negative publicity.
- Show that cigarette companies can help save our ocean, waterways, widlife….