Whole Foods Market Case Analysis

all Foods securities industry store has authorized recognition as recent as January 27th 2011 when CNBC aired Supermarkets Inc inner(a) a 500 Billion Money Machine. social unit Foods is arguably the to the highest degree influential, and by some measures, the most successful supermarket chain in the world. The differentiation gourmet store has swelled into a Fortune-300 keep fellowship offering military posture nutritions and locally grown organic produce. CNBC goes on to read that even open up brands like Safeway, Giant Eagle and Kroger atomic number 18 cultural icons as beaten(prenominal) as our own street names, but they are under unceasing attack from brilliant upstarts like full-length Foods1 From the general supermarket labor only Foods Market breaks down into even a smaller precise industry which is the pictorial and organic foods industry.This industry foc intentd on proving clients with subjective foods which is defined as foods that are minimally processed, largely or complexly free of artificial ingredients, preservatives and other non subjective occurring ingredients and near to their unit, natural state as possible. 7. Also organic foods were a special sub stria of the natural foods grade to be articulateed as organic, foods had to be grown and processed without the use of pesticides, antibiotics, hormones, synthetic chemicals, artificial fertilizers, preservatives, dyes or additives or generic engenerring. Also from the textbook book CEO John Mac constitute believes social unit Foods Market has been highly discriminating for purpose the highest whole tone, least processed, most favorable and naturally preserved foods available. Whole Foods Market is an industry leader in natural and organic food sell. The five forces model of emulation, in written form, is provided as a key analytical tool to better understand the oerall magnet of the industry. contention among competing sellers is certainly solid and is exp ected to become stronger as more food market sellers compete for loyal customers who desire the healthiest foods. The threat of substitutes products is playually high from other grocery retailers. For example, Publix has branded its own natural/organics products personal line of credit named Green Wise and even a few stores that guard a majority of its products natural/ organic. The restaurant industry should be considered but it is a very low threat because there are very few restaurants that are only dedicated to natural/organic products.The threat of vernal-fashioned entrants entering the industry is fairly low. This is simply because grocery retailers drop already got into the market to insure they would get their share. The bargaining power of suppliers is a ordinary level threat to the industry because industry members are competing for products to put on their shelves from the same suppliers. The bargaining power of buyers is definitely low because conventional re tailers set the price consumers must pay to obtain the goods they want.Because of these threat levels the overall attractiveness of the industry high. Consumers are becoming more conscious of the foods they are take and will continue buying natural and organic foods. thither take up been many main events and performance indicators that have occurred with Whole Foods Market recently, as stated in the Epilogue to January 2009 Whole Foods Market planned on opening 15 stores , have annual sales of about 8. 3 billion, have capital expenditures of $400 to $450 million, and incur annual interest be of $35 to $40 million. The main elements of Whole Foods Market strategy are providing customers with the highest part natural/organic products. Whole Foods Market has a strong growth strategy because they have 66 store in the stages of suppuration and have future plan of acquiring more stores to expand their beau monde go on down the road. This growth strategy has helped them achieve th eir financial goals. Whole Foods Market can be assessed by using a elemental SWOT epitome. This assessment will begin by examining the internal strengths and weaknesses. immanent strengths Whole Foods Market has two narrow markets that it serves, organic differentiation is the key-stone of whole foods mission, this means Whole Foods Market uses a focus differentiation strategy, highest fiber brand written report, dedication to the social ethics of organics, industry best customer service strong supply 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 also in the United Kingdom.Whole Foods Market is known 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 come withs focus on their availability of t he finest products. The majority of Whole Foods Market inventory consists of perishable items. This can sometimes pose problems because, produce, milk, eggs have a short shelf life, Produce especially needs constant maintenance to be graded as well as wrench the damaged or bruised produce off the sales floor.Working as a roduce clerk for several years I know the enormousness decreasing the cost of throw away products. It hurts the companys sales especially when you are dealing with pricy high quality natural and organic foods. Another weakness the Whole Foods Market faces is the high be associated with expanding into different locations. The third part of SWOT is external opportunities that WFM faces in the industry. over the past couple of decades more consumers have been becoming more health conscious and eating right. WFM can take advantage of this new mind-set on the health food industry by acquiring new customers.Also, Whole Foods Market should spend more money on publici se to attract these health conscious customers. The final part of the SWOT analysis is the external threats that Whole Foods Market has to face. One of these threats is the increasing competition of already established grocery retailers. Its very easy for these competitors to add natural and organic foods into their inventory. Another threat to Whole Foods Market is that their growth relies on building new stores and acquisitions of existing 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 belligerent situation. Whole Foods Market is in good standings with the competition they seem to have a business model that is working for them and may need to dialect a bit more on advertising and attracting more he alth 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 network of suppliers.This KSF has been a focus of Whole Foods Market to purchase their products grown locally to their stores. t severallying from wholefoodsmarket. com shows that each store has their own definition of local but the consumer but 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 signa l 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 many 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 commitment to sustainable agriculture, and the excitement and fun they bring to shopping for groceries, Whole Foods Market is for good committed to buying from local farmers whose produce meet quality standards, curiously 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 bey ond the company by contributing to a higher quality of life. By offering the highest quality food available, we are circumstances to transform the diet of America, helping people live longer, healthy, more pleasurable lives while responding positively to the altercate of environmental sustainability. In Conclusion, Whole Foods Market is the leader in this break market of natural/organic foods industry and is facing strong competition from the big superstores such as Wal-Mart, Costco and many other grocery retail chains. The company is in a position to change people lives constantly and future generations as well. As many companies are doing now is finding their consumers and keeping those customers for life. Not just what they just spend at the muniment 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 disbursement more money with Whole Foods Market.Works Citedhttp//www.wholefoodsmarket.com/p roducts/locally-grown/http//www.wholefoodsmarket.com/values/green-mission.php