Whole Foods1. What are the chief elements of the strategy that Whole Foods Market is pursuing?
I found the following elements as the key strategy of Whole Foods:-
* To have the best store locations and have big store sizes: Some of the features of stores are premium retail sites with high traffic, improved visibility, good parking. facility higher sales/sq foot,
* Inorganic & Organic growth strategy : Acquisitions of Wild Oats and other stores in different and new geographic markets
* Attracting broader customer base: By keeping higher percentage of perishable products
* Selling premium products at premium prices: The company earns better while following this strategy. Besides that company is following its strategy to serve the growing niche market. According to survey, 27% of respondents indicated they consumed higher organic foods than last year
* Good shopping experience with variety of premium products:
* Decentralized decision making and empowered employees:
2. Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry?
Yes, these strategies are very well working in context of conditions in the natural and organic food segments because of the following reasons.
* Higher bargaining power with suppliers enable the company to better prepare themselves with enough inventory and at a cheap price
* Taking advantage of the up tide in the growing consciousness among consumers to consume organic food. Thus, the right location of the stores (in the upscale metros) would capture the right customers who can afford premium products offered at Whole Foods
* Attracting broader customer base, giving them good variety of products and good shopping experience would retain customers for long time
* Decentralized decisions and empowered employees would helps in smooth functioning of operation with faster action being taken in different stores depending on the...