...SWOT Analysis As Whole Foods Market, we pride ourselves on providing fresh organic food to our consumers. One of our major strengths is that we have a large emphasis on perishable fresh food, which provides a competitive advantage over some other popular grocery chains, such as Kroger and Wegmans2, whose primary focus is on prepackaged products1. Another strength for our company is that we have the highest sales per square foot in the supermarket industry3, while still keeping our prices competitive. We continue to attract a variety of people, trying to reach different market segments. However with all the success our company has had we do have several weaknesses. One major weakness for Whole Foods Market is that we have a very small international presence at the moment, with only seven stores in Canada and Six in the UK1. The sales from Whole Foods stores outside the United States only contribute 3% to the total revenue on our comapany1. Since we do no have much experience with opening stores internationally this could potentially be a problem when we plan to expand to China. In order to understand the Chinese market Whole Foods Market has analyzed the external factors of the environment. We discovered three opportunities for Whole Foods Market in China. One major opportunity is that there is a growing concern for food safety in China (Appendix Brynn). The standards for food safety vary greatly between provinces; and there have been many recent recalls on food in this country...
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...Whole Foods Market, Inc. (Whole Foods Market or 'the company') is a natural and organic foods supermarket chain that operates through several wholly owned subsidiaries. The company's supermarkets are located in the US, Canada and the UK. It is headquartered in Austin, Texas and employs 64,200 people, of which 13,300 are part-time employees and 2,700 are temporary employees. The company recorded revenues of $10,107.8 million during the financial year ended September 2011 (FY2011), an increase of 12.2% over FY2010. The operating profit of the company was $547.6 million in FY2011, an increase of 25% over FY2010. The net profit was $342.6 million in FY2011, an increase of 42.5% over FY2010. Strengths Whole Foods Market is the world’s leading retailer of natural and organic foods and America’s first national “Certified Organic” grocer. The company is the 10th largest food retailer overall. This is an attractive company to work for as Whole Foods has been named by Fortune Magazine as one of the “100 Best Companies to Work For” in the U.S. for 15 consecutive years. Whole Foods has a strong focus on creating the right size for their stores. The company is focused on the right sized store for each location. Since FY2008, the company has downsized 20 leases by an average of 13,000 square feet each. They reduced approximately 1.4 million square feet from its development pipeline, downsizing 20 leases for stores in development and terminating an additional 22 leases...
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...Whole Foods Case Analysis 1. (a) Whole Foods operates in the organic, or natural and specialty foods retail industry. Leading the industry, Whole Foods Market is the world's most successful natural foods grocery chain. Having recently acquired one of its main competitors, Wild Oats Market, Whole Foods currently competes with two other large grocery chainsKroger and Trader Joe's. The company also acquired Amrion, a company specializing in nutraceuticals (natural supplements with pharmaceutical-type benefits), creating considerable competition with General Nutrition Centers (GNC) nutritional supplements and dietary products. Additional competition is taking place in traditional grocery stores incorporating some organic products on to their shelves. 1. (b) The attractiveness of this industry and its potential for profit are functions of Michael Porter's five competitive forces model: barriers to entry, bargaining power of both suppliers and buyers, the threat of substitute products, and the depth of competition among rival companies. Barriers to Entry Currently, Whole Foods has no significant barriers to entry. Americans are becoming more food and health conscious and Whole Foods is catering to this demand by becoming the premier outlet for all-natural, organic food products, while creating a unique, cohesive brand. The company is growing a loyal customer base, and is offering the majority of its products at competitive prices. With more than 300 stores located in the US,...
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...Whole food Market in the Kenosha area would be a great addition to the local economy. This food store brings core values that align with the city of Kenosha values to “Chart a Better Course”. Healthy eating is the better course for everyone’s lives. Whole Foods could give the community the highest quality of natural and organic foods. Whole Foods does give back to the local community by supporting the local shelters and food banks. The company also allows local farmer a chance to become suppliers for the local area stores. Whole Foods have a unique niche market by putting a priority on what product it sells, the pricing of each items, how to communicate to the customers and promote health lives, and it is stores are located in places...
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...| Whole Foods Market | Case Study Analysis #1 | | Britney Brumfield | 3/2/2014 | | Whole Foods Market was found in 1980 and has progressed from a local super market found in Texas, into the globes largest provider of natural and organic foods with over 270 stores worldwide. The rapid growth and success of Whole Foods is due to having “remained a uniquely mission driven company highly selective about what we sell, dedicated to our core values and stringent quality standards and committed to sustainable agriculture” as stated by the companies CEO John Mackey. Whole Foods states its purpose as a corporation is helping support the health, well-being, and healing of people, team members, and business organizations in general, and the planet. This is Made known by the company motto “Whole Foods, Whole People, and Whole Planet” (Whole Foods). (Fig.1) Whole Foods Market Motto (Fig.1) Whole Foods | Whole People | Whole Planet | * Highest quality * Least processed * Most flavorful * Natural foods NoArtificial: * Additives * Sweeteners * Colorings * Preservatives | People are their companyPassionate employeesMotivated employees | -Whole Planet Foundation-support food banks -Sponsor neighborhood events -Donate to local non-profit groups-Support of organic farming and sustainable agriculture | (Fig.2) Whole Foods Market’s Core Value | Selling the highest quality natural and organic products | Satisfying and delighting costumers | Team...
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...Running head: COMPETITIVE FORCES AND SWOT ANALYSIS Competitive Forces and SWOT Analysis Assignment #2 Whole Foods Market Strayer University BUS599016VA016-1116-001 Strategic Management July 17, 2011 Abstract This paper examines the business strategy of Whole Foods Market. The paper will also examine the competitive environment and significant threats to Whole Foods Market’s competitive advantage. The company’s competitive strategy and the impact of the trends in organic foods will also be discussed. Competitive Forces and SWOT Analysis Assignment #2 Whole Foods Market In 1980 Whole Foods Market started out as one small store in Austin, Texas. Today there are more than three hundred stores in North America and the United Kingdom. Whole Foods Market is a mission oriented company (http://www.wholefoodsmarket.com/company/). They speak of their mission in terms of Whole Foods-Whole People-Whole Planet. Whole Foods they search for the finest natural and organic foods available. Their mission is to find the highest quality, least processed natural foods. They search for foods without artificial additives, sweeteners, colorings, and preservatives. Whole People they are a people company. They are passionate about healthy good and a healthy planet. They create a respectful workplace where people are treated fairly and are motivated to succeed. Whole Planet they are committed to take care of the world. They support organic farming and sustainable...
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...Whole Foods memorandum to: business Policy subject: Whole Foods Case Analysis ------------------------------------------------- date: [ 9/2/2012 ] INTRODUCTION The following is a situational analysis of Whole Foods. I will be explaining the company’s background, current situation, SWOT analysis, key issues and alternatives and my recommendations for the company. CURRENT SITUATION In 1980, Whole Foods Market evolved from a local supermarket that sold natural and health foods in Austin, Texas, into the world’s largest chain of natural and organic foods supermarket. In 2009, the company has sales revenue of $8 billion and in 2010, had 289 stores in the United States, Canada and Great Britain. Over the past 32 years, Whole Foods has become the leader in organic and natural foods throughout the United States, helping the people of the United States become more aware of their food habits.. John Mackey, co-founder and CEO, believed that marketing high quality natural and organic foods to more and more customers in more and more communities would help spread the word that our diets are very important to way we live, allowing people to see how they can enjoy a long, healthy and pleasurable life. Mackey states that he wants Whole Foods to become an international brand synonymous with carrying the highest quality natural and organic foods available and being the best food retailer in every community in which Whole Foods stores were located. He wants Whole Foods to set...
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...Whole Foods Market Assignment #2 Competitive Forces and SWOT Analysis. Latrice Taylor Strayer University • Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. According to the USDA(United States department of Agriculture) Organic foods now occupuy a prominent shelf in the produce and dairy aisle of most mainstream U.S food retailers. The marketing boom has pushed retail sales of organic foods up to $21.1 billion in 2008 from $3.6 billion in 1997. The U.S. organic-industry growth is evident in an expanding number of retailers selling a wider variety of foods, the development of private-label product lines by many supermarkets supermarkets, and the widespread introduction of new products. A broader range of consumers has been buying more varieties of organic food. Organic handlers, who purchase products from farmers and often supply them to retailers, sell more organic products to conventional retailers and club stores than ever before. Only one segment has not kept pace—organic farms have struggled at times to produce sufficient supply to keep up with the rapid growth in demand, leading to periodic shortages of organic products.(USDA.Gov pg 3). As a result of the quick rise in the organic food industry Whole Foods found a selling nitch and advanced in the market of organic food sales. They opened up a chain of grocery stores that represented oorganic food sales and healthier living as a whole Whole Foods' growth...
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...f Unit 5 Whole Foods Case Study Analysis Kaplan University School of Business and Management MT460 Management Policy and Strategy Author: Devin Thomas Professor: Dr. Thigpen Date: January 17, 2012 Introduction Whole Foods Markets is a food market that prides itself on providing its customers with the highest quality of natural and organic foods. Through the acquisition of a number of other companies, whole Foods have grown to become the largest natural food supermarket in the United States. Staying true to their mission statement and original ideals is the formula the company credits their success to. Synopsis of the Situation Founder John Mackey may not have dreamed that the one Whole Foods market store he helped to create back in 1980 would grow to become the leading supermarket in the natural foods industry. Whole Foods has come a long way since the first store opened in Austin, Texas over 30 years ago: subsequently, so has the organic food industry in its entirety. Expansion of the natural foods industry has brought with it increased demand for organic food and new competition. With such demand on the rise, supply has now become a concern for Whole Foods. Key Issues Only 3 percent of US farmers grow organic products. US shoppers spent 45 billion dollars on natural and organic products in 2004. (Harasta, Hoffman, 2007). The growing organic foods industry has created major competitors like Trader Joes that offers high quality products at low...
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...Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. Whole Foods is the world’s largest supermarket retail chain of natural and organic foods. This supermarket wanted higher quality, less processed, more flavor and preserved natural products. As the leader in natural and organic foods, Whole Foods looked for consumers that were concerned about what they were eating, their eating patterns and their health and wellness. John Mackey, CEO of Whole Foods has a vision that he doesn’t want to become just an international brand with natural and organic foods, but to be the best retailer in every community (Thompson, Strickland, & Gamble, 2010). Whole Foods company motto is “Whole Foods, Whole People, Whole Planet,” (Thompson, Strickland, & Gamble, 2010), this purpose is to help support health, well-being, and healing of both people-customers, team members, and business organizations and the plant. (Thompson, Strickland, & Gamble, 2010) The demand and trends for natural and organic is increasing with more people wanting to live longer, healthier, and more pleasurable lives. In 2000, the United States Department of Agriculture (USDA) reported more organic food was sold to supermarkets than the 14,500 natural food stores (Thompson, Strickland, & Gamble 2010). Congress passed the Organic Foods Production Act (OFPA) in 1990, to develop the standards and organically produced agricultural products to assure consumers...
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...Case Study: Whole Food’s SWOT Strengths: • The store Whole Food’s has a passion for food and high standards for quality products. It’s a store that guarantees 100 percent satisfaction on all items purchased. • Size of their store and the competitive advantage that comes along with having a large store that caters to customers. There are very few natural food stores that are large. As a result, this was a strength for Whole Foods. • Their ability to cater to customers and adapt to their surroundings. Each Whole Food’s store had a customized layout, which fit the particular site and building. This enabled them to showcase particular products for their target market. • Incentives for employees: This allowed them to create shareholder value. Weaknesses: • Cost: The cost of organic and whole foods can be very expensive. • Store size: Though marketable, this can also been a weakness to the company. With size comes a larger upkeep, employee base, and high quantity of product. • Limited quantity offered: Though they are a specialty store that offers a healthy alternative, with the size of the store it is a necessity for them at some point to expand their product and customer base. Opportunities: • Increasing the awareness of the health/organic food industry. • Growth through acquisition. • Continuing to further enhance their brand and image (community service and marketing). This will allow them to become more profitable in the future, while also expanding their reach...
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...Date: To: 26 January 2011 Mr. John Mackey, CEO Whole Foods Market , SVP Corporate Strategy Group Interim Strategic Analysis From: RE: In response to our conversation on January 19, I have prepared a strategic analysis to assess the current competitive position of Whole Foods Market in the retail grocery and organic food industries. As you are aware, the US food industry is intensely competitive with firms ranging from corner store shops up through national retail chains. In recent years, there has been an increased focus on healthy living as characterized by exercise, mental wellness, and eating healthy and organic food. In addition, concerns over food safety, particularly the use of pesticides and other chemicals, has gained media attention and caused some consumers to shift their purchase habits toward organic and natural products.1 If the government implements stricter food production policy, Whole Foods should expect an additional increase in sales. Lastly, a growing awareness of the food supply chain sustainability from the producer to the retail store has also attracted some customers to our stores. Whole Foods enjoys as loyal customer base because of our unique position as a national organic food retailer. We have seen an increase in middle aged and older customers shopping at our stores, in line with the aging US population. These customers tend to have higher discretionary spending and can afford to pay the premium price for organic groceries. On the other...
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...Andryce Zurich Date: 12/31/2015 Internal Analysis and Long-Term Objectives Company Name: Whole Foods Market Topic of the Week: Internal Analysis and Long-Term Objectives Synopsis of the Situation Whole Foods Market is the world’s leading company in natural and organic food sales. Their growth and success is due to being highly selective about what they sell, they are also dedicated to high quality standards and their core values. They are also the first American grocer to be a nationally certified organic and ranked 284th in Fortune 500 (Pearce & Robinson, 2013). Whole Foods is struggling to maintain its edge over today’s competition, many of their competitors can purchase more product and sell it for less. Due to the rising awareness of healthier eating and farmers producing more organic and natural products Whole Foods finds itself in a precarious position. The position would be the fierce competition from big box retailers such as Wal*Mart, target, Costco, and the standard grocery stores. These competitors have the ability to order larger quantities at a lower cost giving them the ability to offer the natural or organic products at a lower price (Pearce & Robinson, 2013). Alternative Solutions 1. Increase brand awareness, image, and loyalty through advertising and public relations. The advantage of this is to promote the Whole Foods brand, and to increase their overall general sales by bringing in new customers. 2. Open smaller stores with just...
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...WHOLE FOODS Questions: 1. What about related products? The products that offers Whole Foods are natural and organic food offering customers a wide variety of products. This means food that is free of growth hormones or antibiotics and food conforms to the standards as defined by the U.S Department of Agriculture in October 2002. Product categories at Whole Foods include: produce, seafood, grocery, meat and poultry, bakery, prepared foods and Catering, Speciality( Beer, Wine and Cheese), Whole Body (nutritional suplements, vitamins, body care, and educational products such as books), floral, pet products and householdsd products. 2. What of the general environment segments and which factors therein are most relevant to WFM? To WFM one of the most relevant could be about population because in the last years, consumers have made a gradual move toward the use of fresher, healthier foods in their everydays diets. There are a segment that prefer expend more money in gourmet shops with a high quality in their products. But low prices and convenience continue to be the dominant factors driving consumers to supermarkets today. That is other factors the competitive environment, unless Whole Food Market was one of the first natural an organic products shop, when it open only were another 6 shops like this in USA in the next years a lot of grocery are flourishing. As well the supermarkets and shops are introducing new products to sell similar to the WFM...
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...Strategic Choice and Evaluation United Natural Foods, Inc (UNFI) “is the leading U.S. independent national distributor of natural, organic, specialty foods and related products, including: nutritional supplements, personal care items, and organic produce” (UNFI, 2012, para. 1). UNFI started out as Mountain People’s Warehouse in 1976, when people started becoming interested in natural product. In 1996, Mountain People’s Warehouse and Cornucopia Natural Foods merged and formed United Natural Foods, Inc. Today the company employs 6,900 individuals throughout the United States and Canada. This paper is going to evaluate the best value discipline, generic and grand strategies, and the recommended strategy UNFI should implement in the organization. Best Value Discipline Value disciplines are strategies that center on delivering customer value through operational excellence, customer intimacy, and product leadership (Pearce & Robinson, 2011). Operational Excellence Operational excellence is the approach to the production and delivery of products and services. Using this approach the organization leads the industry in price and convenience by focusing on lean and efficient operations. Organizations using this approach work hard to minimize costs by reducing overhead costs, eliminating unneeded production steps, reducing transaction costs, and optimizing business processes (Pearce & Robinson, 2011). To implement this strategy organizations generally restructure their delivery processes...
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