Identify the business-level strategy used by HOSB and its strategic target market,explaining how competitive advantage is gained using the strategy.

QUESTION 1 Health Organics Sdn Shd {HOSE} is a popular health food store that sells organically grown food products and health supplements at Central Hill Mall in Putraiaya. Hishem is the owner of HDSS. He was previously a national bodybuiider champion and had won many competitions in the past The experience and knowledge gained have motivated Hisham to operate the health food store business to cater to health-conscious professionals with higher income and hectic work life. HOSE has garnered a strong crrstcrner base due to its continuous effort in offering valued and quality products and services. Since its establishment. HOSE has broadened its product line. including a range of unperted premium-priced instant healthy meals for busy professionals. Even though the meals only remire simple preparation by heating it in the microwave oven. its nutritional value and taste are still preserved. HOSE popularity stems from various factors. including Hisham's reputation as a national champion bodybuider. excellent personal service. and efficient cash management. contributing to its above-average returns. Since a year ago. the Central Hid fvlall has begun strategising on having more stores selling affordable healthy food. organically grown food products and health supplements. As consumers are now more health-conscious. the online market and direct setting are also lump'mg on the bandwagon. Thus. the market has become very saturated and competitive. HGSB' s products are no longer unique in the eyes of even their used-to-be loyal customers. Hisham desperately needs to take action quickly to survive in the trying situation of increasing competition. In addition to the pandemic Covid-'IS. the quarantine exercises have also inspired Hisham to review the existing strategy He decides to shift the business's focus by narrowing the target market to these potential customers who are health conscious and nancially capable but staying at home as they lacks of mobility and access to transportation. The proposed strategy entails Hisham to provide home delivery services for orders of the health foods and supplements. To undertake the new strategy. he plans to close his store in Futraiaya and work from home instead. He also plans to outsource the delivery service to a reliable food delivery company such as SrabyFocd and PandaFood. Nevertheless. Sarah. the nancial controller of HOSE does not think Hisham's plan would be feasible. Moreover. HOSE is curently undergoing the decline stage share the demands for health and organic products have been affected by competition significantly. Central Hill Mall recent strategy has posed threats to HOSE. Sarah believes that to remain competitive in the market. HCISS needs to seek a new strategy to eiminate unnecessary costs and improve productivity. Like other companies. Sarah foresees that HOSE would also require sound turnaround strategies such as asset and cost surgery. selective product and market pruning. and piecemeal productivity improvements to boost business growth. a. Identify the business-level strategy used by HOSE and its strategic target market. explaining how competitive advantage is gained using the strategy. {5 marks}