Whole Foods Market

Published: 2021-06-29 06:55:59
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Category: Business

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By 2005, Whole Foods Market had evolved into the "world's largest retail chain of natural and organic foods supermarkets." Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. Whole Food's stated mission statement was to "promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available."

At the same time, Whole foods market was experiencing scarce resources in the organic produces and prime locations for their next business expansion. In this case study, firstly, it will analyze external and internal environments, competitor and five forces of this industry. Then, it will move on to the analyses of capabilities and core competencies of Whole Foods Market. Lastly, it will provide recommended strategies for Whole Foods Market to achieve its target: to reach US$10 billion in revenue with 300-plus stores by 2010 without sacrificing quality ad its current reputation.

External Analysis

In October 2002, the US Department of Agriculture defined the standards of 'certificated organic' food, which gave the Whole Foods Market a legal opportunity to start its new business. At that time, Whole Foods Market was an early entrant into the organic food market and it has used its early mover advantage to solidify its position and continue its steady growth. (Opportunity)

Admittedly, potential threat exists as well. For instance, if new laws require the reformulation of certain products to meet tougher standards, the supply of these products may be constrained. Any significant disruption in the supply of quality natural and organic products could have a material impact on its overall sales and cost of goods. (Threat)

Firstly, Whole Foods Market commit to sustainable agriculture. They believe in a virtuous circle entwining the food chain, human beings and Mother Earth. Furthermore, the company defines its philosophy as following: Whole Foods Market's vision of a sustainable future means business will harness human and material resources without devaluating the integrity of the individual or the planet's ecosystem. The opinions above are strengths, and can help Whole Foods Market building its social and business reputation. (Strength)

Then, with a growing percentage of women working outside of the home, the traditional role of home-cooked meals, prepared from scratch, has waned. So sales of ready-to-eat meals have grown significantly, and the consumer awareness of the need for the one stop shopping experience has increased as well. This provides an opportunity for Whole Foods Market to develop a new increasing point to its sales. (Opportunity)

 European expansion provides enormous potential growth because of the large population, and WF holds a more sophisticated organic-foods market. (Opportunity and strength)
 WF targets locations where 40 per cent or more of the residents have a college degree, as they are more likely to be aware and supportive of nutritional issues. (Weakness)

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