Dietary supplements, capsule production, PRODIETIC, market diversification, technical feasibility, economic viability, production line investment, hybrid strategy
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Abstract
This study assesses the feasibility of PRODIETIC's diversification into dietary supplement capsule production, evaluating technical and economic viability.
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[...] These elements enable the company to benefit from economies of scale and product line diversification, and to master the risks inherent in innovation. Its workshops are modular according to the desired products. PRODIETIC's diversification towards the production of dietary supplements in the form of capsules is an operation that would involve all these services and represents a major strategic challenge for the company, both to limit the risks inherent in projects in the company's portfolio, but also to conquer new markets. [...]
[...] This plan is broken down into several steps. In the first instance, we conducted an in-depth market study. Then, we conducted a profitability analysis. To do this, we previously identified the technical needs, human needs related to training needs, as well as customer needs. A thorough analysis of the dietary supplement market in France, Europe, and worldwide has demonstrated the growing trend of consumption on these different markets. In France, the dietary supplement market in 2022 represented 2.6 billion euros, an increase of 13% compared to of the population indicates having suffered from fatigue, stress, and sleep disorders. [...]
[...] This option corresponds more to the needs of the company. Thus, the decision not to invest immediately in capsule production has opened the way to promising strategic alternatives that we prefer to adopt. We have arrived at the construction of a hybrid strategy that offers increased flexibility and allows the company to test the profitability of the capsule market, to realize profits while minimizing financial risks. Recommendations and perspectives: Diversify the ranges offered through subcontracting solutions: Conduct a profitability study for other formats of dietary supplements (gummies, drinkable sachets . [...]
[...] Conclusion: Within the framework of this thesis, we have explored the diversification strategy of PRODIETIC towards the production of dietary supplements in gel capsule form. The objective is to present all the steps taken within the framework of this thesis, as well as the results obtained and the recommendations formulated for PRODIETIC. Before starting, it is necessary to go back to the company's structure. PRODIETIC is a company with 40 employees and a turnover of 8 million euros in 2023. It is located on a 11,000 m2 site in the Oise and has modern infrastructure including offices, R&D laboratories, production workshops and storage spaces. [...]
[...] Subcontracting presents itself as a transitional solution that allows the company to evaluate the viability of this diversification before making major and irreversible investment decisions. Our main objective is to be present on this market, and this can be done through an external service provider. This solution would allow us to occupy the market before investing in a new production line. We have identified a service provider that can meet our needs: Green Caps. In continuation of our profitability study, we have studied two types of subcontracting, partial subcontracting and complete subcontracting. [...]
