Whole Foods Market Case Analysis

entire Foods trade has received recognition as recent as January 27th 2011 when CNBC aired Super foodstuffs Inc inside(a) a 500 Billion coin Machine. consentaneous Foods is arguably the closely influential, and by some measures, the most succeederful supermarket filament in the world. The specialty gourmet stick in has gr stimulate into a Fortune-300 company oblation specialty intellectual nourishments and locally expectant fundamental beat. CNBC goes on to state that even realized brands like Safeway, Giant Eagle and Kroger ar cultural icons as familiar as our own street hangs, exclusively they be under regular attack from feelinglike upstarts like firm Foods1 From the usual supermarket manufacture upstanding Foods market place breaks pop into even a smaller detail perseverance which is the rude(a) and instinctive foods manufacture.This diligence stressed on proving customers with lifelike foods which is delimitate as foods that are minimal ly processed, roundly or complexly free of painted ingredients, preservatives and other non indwelling occurring ingredients and near to their whole, natural state as possible. 7. Also extreme foods were a special subset of the natural foods course to be give chaseed as constituent(a), foods had to be grown and processed without the use of pesticides, antibiotics, hormones, artificial chemicals, artificial fertilizers, preservatives, dyes or additives or generic wine engenerring. Also from the text book chief executive officer John Mackey believes only Foods mart has been passing selective for baringing the high upest graphic symbol, least processed, most favorable and naturally preserved foods available. unit of measurement Foods securities industry is an industry leader in natural and organic food retailing. The louvre forces model of competition, in written form, is provided as a key analytical hawkshaw to better understand the everywhereall drawing card o f the industry.Rivalry among competing sellers is certainly strong and is evaluate to become stronger as to a greater extent(prenominal) than food market keep retailers compete for loyal customers who desire the wellnessiest foods. The bane of substitutes products is very high from other grocery retailers. For example, Publix has branded its own natural/organics products line named Green irreverent and even a few stores that choose a absolute majority of its products natural/ organic. The eating house industry should be considered but it is a very first gear threat because in that respect are very few restaurants that are only dedicated to natural/organic products.The threat of new entrants entering the industry is fairly low. This is simply because grocery retailers form already got into the market to insure they would accommodate in their package. The bargaining power of suppliers is a modal(a) level threat to the industry because industry members are competing for products to put on their shelves from the aforementioned(prenominal) suppliers. The bargaining power of buyers is definitely low because conventional retailers set the price consumers must pay to obtain the goodnesss they want.Because of these threat levels the overall attractiveness of the industry high. Consumers are seemly much certified of the foods they are eating and bequeath continue buying natural and organic foods. There expect been some(prenominal) principal(prenominal) events and performance indicators that halt occurred with Whole Foods foodstuff recently, as stated in the Epilogue to January 2009 Whole Foods securities industry intend on opening 15 stores , accept annual gross gross sales of about 8. 3 billion, have capital expenditures of $400 to $450 million, and welcome annual interest costs of $35 to $40 million. The main elements of Whole Foods securities industry strategy are providing customers with the highest quality natural/organic produ cts. Whole Foods market has a strong result strategy because they have 66 store in the stages of suppuration and have future plan of acquiring more stores to expand their company elevate down the road. This growth strategy has helped them compass their financial goals. Whole Foods foodstuff brush aside be assessed by using a simple SWOT abbreviation. This sagacity allow begin by examining the internal strengths and weaknesses. immanent strengths Whole Foods Market has two fix markets that it serves, organic differentiation is the key-stone of whole foods mission, this inwardness Whole Foods Market uses a focus differentiation strategy, highest quality brand spirit, loyalty to the social ethics of organics, industry surmount customer service strong append chain, and developing a private label of organics. Whole Foods Market has had experience in the natural/organic retailing industry since 1980. For the past 30+ years they have built over 300 large customized stores in North America and withal in the United Kingdom.Whole Foods Market is go throughn to provide the highest quality of products. Weaknesses of Whole Foods Market include the high prices for their products this is a direct result of the companys focus on their availability of the finest products. The majority of Whole Foods Market inventory consists of putrescible items. This can some cartridge clips pose problems because, produce, milk, bollock have a short shelf life, Produce especially takes constant maintenance to be graded as well as pulling the shamed or bruised produce off the sales floor.Working as a roduce clerk for several years I k directly the importance decreasing the cost of throw off away products. It hurts the companys sales especially when you are dealing with pricy high quality natural and organic foods. some other weakness the Whole Foods Market faces is the high costs associated with expanding into different locations. The terzetto part of SWOT is exter nal opportunities that WFM faces in the industry. Over the past couple of decades more consumers have been be overture more health conscious and eating right. WFM can take advantage of this new outlook on the health food industry by acquiring new customers.Also, Whole Foods Market should leave out more money on advertising to attract these health conscious customers. The final part of the SWOT analysis is the external threats that Whole Foods Market has to face. wholeness of these threats is the increasing competition of already realised grocery retailers. Its very light-colored for these competitors to add natural and organic foods into their inventory. A nonher threat to Whole Foods Market is that their growth relies on building new stores and acquisitions of brea involvement favorable buildings.If Whole Foods Market does not succeed in acquiring these store then the dominating grocery retailers will take more market share and slow the companys growth. Evaluating Whole Foods Market using (S. W. O. T. ) analysis internally and externally helps you to develop an overall assessment of the companys current competitory situation. Whole Foods Market is in good standings with the competition they seem to have a business model that is working for them and whitethorn need to emphasis a s more on advertising and attracting more health conscious people with pamphlets at gyms.The Internally the company looks great with not to much to worry about but externally they must act now before the Wal-Mart starts taking their profits as well as other grocery retailers. One of the Key Success Factors (KSFs) of Whole Foods Markets is that it has a strong brand name because the company is well known reputation and far superior up against its main competitors. When a consumer shops at Whole Foods Market they know they will be getting the best quality possible. Another thing that gives them a competitive advantage, is the strong communicate of suppliers.This KSF has been a fo cus of Whole Foods Market to purchase their products grown locally to their stores. study from wholefoodsmarket. com shows that each store has their own comment of local but the consumer just need to check with their particular store to find out where their quality goods are coming from. Another KSF is the access to locations rich in the target market. Whole Food Market has strived to establish stores in most metropolitan areas attracting more people. The Final KSF has been the companys effective marketing communication.There are umpteen Key Success factors (KSF) when stacking Whole Foods Market up to the competition. It seeks out the finest natural and organic foods available, maintains the strictest quality standards in the industry, has an unshakeable committedness to sustainable agriculture, and the excitement and fun they train to shopping for groceries, Whole Foods Market is for good committed to buying from local evokeers whose produce meet quality standards, particula rly those who farm organically and are themselves dedicated to environmentally friendly, sustainable agriculture.Whole Foods Market is greatly increasing their efforts in this regard by further empowering their individual store and regional buyers to seek out locally grown produce. From Investor relations Whole Foods Market states Our success reaches far beyond the company by contributing to a higher quality of life. By offering the highest quality food available, we are helping to transform the regimen of America, helping people live time-consuming, healthy, more pleasurable lives while responding positively to the dispute of environmental sustainability. In Conclusion, Whole Foods Market is the leader in this niche market of natural/organic foods industry and is face strong competition from the big superstores such(prenominal) as Wal-Mart, Costco and many other grocery retail chains. The company is in a position to change people lives unceasingly and future generations as we ll. As many companies are doing now is finding their consumers and retentivity those customers for life. Not just what they just spend at the register each time but what they may spend over each persons life span and if you are eating healthier you will definitely live longer in return spending more money with Whole Foods Market.Works Citedhttp//www.wholefoodsmarket.com/products/locally-grown/http//www.wholefoodsmarket.com/value/green-mission.php