The characteristic of the energy food and organic food industry is that “most sales by manufacturing companies are to other manufacturing companies. Profitability depends on efficient and cost-effective manufacturing operations and distribution. Small companies can compete by producing specialized products or selling into specialized markets. Large companies have advantages of scale in procurement, production, distribution, and marketing.
Average sales per employee vary greatly due to the large variety of products in this sector.” (‘Clif Bar Inc – Competitive Landscape’) The competitors of the company have already climbed upon the bandwagon for increasing their operations and targeting a much larger and a global market with their products. Their aggressive activity in the international markets as well as their presence in the international markets is an advantage for the companies. Clif bar currently is unable to take advantage of the change in the market and the globalization of the food industry unless it increases the capacity of its production of energy bars and energy products by investing in more capital for its manufacturing division.