Medifast/Optivia SWOT Analysis 2022 – A Complete Guide!

Medifast SWOT Analysis

Medifast is an American-based company that deals in nutrition and weight loss. It has its headquarters in Baltimore, Maryland. It manufactures, distributes, and sells its weight loss products and other related products through its websites, telemarketing, multi-level marketing, and through its franchises.

A SWOT analysis is a critical tool that Medifast needs to evaluate its standing in the market. SWOT analysis gives critical insights into both the internal market as well as the external market. With these insights, the brand can better prepare to make the most of its internal capabilities to be effective in making the most of the external environment. Here is Medifast’s SWOT analysis

Medifast – At a Glance

Founders Evan Spiegel, Bobby Murphy, and Reggie Brown
Chief Executive Officer (C.E.O.)Daniel R. Chard
HeadquartersBaltimore, Maryland, United States
Year Founded1980
Revenues (FY 2020)934.8 million USD
Key Products/ServicesMedifast is a provider of clinically proven, portion-controlled weight-loss programs.
Key CompetitorsNewell Brands, Nutrisystem, Landec, and The Nature’s Bounty.

Strengths of Mediafast

Strong product

Losing weight is tough. In the age where humanity has a huge interest in cutting down weight and keeping fit, and in an edge where many of the advertised solutions do not yield any meaningful result, Medifast offers a strong solution that stands above the rest.

Medifast is a solution for dieters who have not found satisfactory results from traditional healthy meal plans and those considering surgery to achieve weight loss. The solution comprises a simple weight loss plan that is made up of five meal replacement items in addition to one meal per day. The solution also includes options for finding support through support groups and from coaches.

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Strong Growth

Medifast has a positive outlook for the future; the brand is poised for growth. Analysts attribute this strong growth to the strength obtained from its OPTAVIA life solution and the coaching support system. Additionally, the brand’s focus on capacity expansion, technological advancements and strategic growth initiatives are factors that boosted the growth.

Strong revenue growth

It is evident that the strong growth of the brand has pushed up its revenues of the brand. In 2021, the brand announced a 63% increase in revenues.

Strong customer support

A select number Medifast/Optivia’s have the option of one-on-one coaching with users of their plans. These coaches come from a wide range of backgrounds offering varied experiences to help users lose weight. Some of them have used the Medifast/Optivia’s plan and therefore know the ins and outs of the program and would make for a great encouragement for those desiring to lose weight.

Additionally, Medifast/Optivia’s get to access support from their nutrition support team which is made up of registered dietitians, and behavioral health specialists among others. This helps make the whole journey of weight loss an easier one.

Weaknesses of Mediafast


Medifast/Optivia’s charges are higher than what the majority of the industry players charge. The brand charges $400 per month while other brands in the industry charge a much more favorable fee. For instance, Weight Watchers (WW) starts its charges at $6.92 per week which makes it $27.68 per month. Noom charges $59 per month, $99 for two months, or $129 for four months; Nutrisystems on other hand starts at $300 per month for the lowest plan.

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Optivia’s weight loss plan is restrictive to only Medifast/Optivia’s brand processed foods. Users can only lose weight based on the strict adherence to Medifast/Optivia’s plan. Once a user stops using Medifast/Optivia’s plan and products, there are chances that the user may gain weight once they resume their usual diet.

Reservations concerning calories

Analysts have observed that Medifast/Optivia’s plan encourages users to consume many of their calories through Medifast/Optivia’s “fueling”. This includes cookies, bars, shakes, cereals, puddings, and soups. This level of calorie intake won’t set up users to healthy habits once they quit using Medifast/Optivia’s plan.

Opportunities of Mediafast

Further market penetration

From the brand’s costing strategy, the brand has catered for the premium market segment. Given economic times are hard, and there are many who may not afford this monthly payment, Medifast/Optivia has a huge opportunity in the underserved ‘economic’ sensitive segment. While the margins in this segment could be little, the volumes would be huge and therefore bring about the huge growth in revenues.

Threats of Mediafast

Stiff competition

With the growth in demand for weight loss services, many companies have ventured into the weight loss space. With such a huge entrance into the industry, every player is keen on expanding their market share.  These competitors include Noom, Newell Brands, Nutrisystem, Landec and The Nature’s Bounty among others threaten to take over Medifast’s market share.

If in any way the competitor’s strategy proves to be effective, then Medifast’s share of the market is diminished. Medifast needs to consider effective strategies that will raise barriers to entry so that it is able to guard its market share.

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Technological advancements

Technological innovation is at the center of all groundbreaking innovations. It is these novel innovations that brought about businesses into being. In the past, technological innovations have rendered some businesses redundant.

Technology is not a preserve of any individual company, every company is at liberty to make the most of technological innovation to their advantage. If any other company comes up with revolutionary innovation, then Medifast may be rendered redundant.


Medifast is a strong product that prides itself in the ability to succeed where others have failed. It serves those who have not been able to achieve weight loss through traditional dietary means and even those seeking to cut weight through surgery.

Medifast’s price strategy is perceived to be costly, the brand may want to consider segmenting their markets and target the ‘economic’ segments of the market. Additionally, the brand needs to strengthen its innovative strategy to help differentiate the brand and raise barriers to entry and ward off competition.

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