GNC: Live Well
About GNC
GNC (General Nutrition Center) was founded in 1935, in Pittsburgh, Pennsylvania by David
Shakarian where the first health store was opened and established. By 1941, there were over 5 stores opened
and the GNC brand continued to expand in addition to creating and producing GNC brand mineral and
vitamin supplements. Currently, GNC is the leading wellness and health specialty retailer worldwide. The
performance products include minerals, herbal, and vitamins supplement products, dietary products, and
sports nutrition products. Their business model is diversed and consist of multiple channels, where the
revenue is gained from product sales, of the company owned retail locations, franchise locations both
international and domestic, e-commerce, corporate partnerships, and third-party manufacturing.
The GNC brand, associates itself with strictly wellness, and health and gives all its consumers a
clear concept of GNC’s benefits and unique trends resulting in growth for the nutritional, and wellness
sector, in addition to broadening the health industry.
Broad product selection includes:
• GNC GenetixHD®
• Mega Men®
• Ultra Mega®
• GNC Puredge ™
• Total Lean ™
• Pro Performance®
• Pro Performance® AMP
• Beyond Raw®
• Herbal Plus®
• National-known thirty party brands
Our Problem
GNC looks to close at least 200 stores, within both the US and Canada, as a result of sales
tremendously decreasing. GNC makes attempts tp renegotiate leases in addition to, making efforts and
opportunities to relocate. This will be determining factors for how many locations will actually close.
However, they will have a limited number of new locations operating for business.
SWOT Analysis
In this SWOT Analysis, the performance of GNC is analyzed and will determine if it can survive
in the future. GNC’s corporate strategy is showcased in this SWOT, which can possibly help place the
company in the right direction, furthermore ultilize tools to help GNC make great progress.
Strengths
• Secured Distribution Channels
Utilizing various franchisees in order to manufacture their products.
Mass production of their products in multiple market regions, undergo partnerships with different
companies, which helps them gain competitive advantage over their competitors.
• Domestic Market Awareness
They have acquired much knowledge on the domestic market because a vast majority of their products are
produced within the domestic market, in addition to its consumers.
Opportunity are maximized once the a prospective segment is established.
• In contact with all business units
GNC is involved in all services they offer and its subdivisions.
All of GNC services and products offered are of high quality
Weaknesses
• Deplorable employee connections
Employee relation is very unsuccessful.
Employee turnover rate is high
Working Environment is negative
• High speculation in R&D
Majority profit and revenue is invested in new product development and research design.
Research and development is lengthy.
Insufficient amount of funds to expand and invest in the business and perform researches at once.
