Competition level within the health sector is still growing. This is evident by the fact that the government provides health incentives to the foreign investors wishing to put resources into the sector. The government is also ready to partner with established companies to provide the minimum health care to its citizens, especially because of the need to maintain children population. However, there are a few companies providing similar services, but unlike H4Y, they specialize in trading, as compared to H4Y, which manufactures and distributes the vitamin-related products to the established markets.
Such foreign company as Natural Remedies Pvt. Ltd is concerned with low budget production of similar products which does not satisfy the demand (Feed Additives 1.Com, 2005). It is assumedly clear that the government imports most of its vitamin-related products to satisfy the demand. In this case, it is safe for H4Y to seek ways through which it could provide these supplies. The effective way to attain this goal is to establish a manufacturing plant to serve the public market niche.
The aforementioned company covers an insignificant percentage of the population which leaves a significant niche which is subsequently economical to tap.