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Whole Foods Case Study

Essay by   •  April 18, 2017  •  Case Study  •  659 Words (3 Pages)  •  1,114 Views

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Whole foods

Whole foods is the world leading natural and organic company.

  1. What about related products?

The Whole Foods Market has a unique mission, deems it important the strict quality standards. The Company is highly selective about what they sell. The products are supplied from local or international supply so you get great promotions of merchants. The product categories are as follows: produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, specialty (beer, wine and cheese), whole body (nutritional supplements, vitamins, body care, and educational products such as books), floral, pet products, household products. The company its ‘heavy emphasis on perishable foods is designed to appeal to both natural foods and gourmet shoppers.

  1. What of the general environment segments and which factors therein are most relevant to WFM? 

The first WFM opened in 1980 in Austin, since then the company has more than 172 stores in the United States, Canada and the United Kingdom. The company determines the location of the business peculiarly way, that takes into account the places 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.

  1. In which industry does WFM compete and what are the dominant characteristics of this industry?

WFM compete in the food industry, more exactly in the natural and organic one. ‘Natural’ refers to food that is free of growth hormones or antibiotics, and ‘certificated organic’ food conforms to the standards as defined by the US Department of Agriculture in October 2002.

  1. Is this an attractive industry in which to compete (Porter)?

In the past, the industry was attractive to compete because at the time of Whole Foods’ inception, there was almost no competition, with less than six other natural food stores in the United States. Today, the organic foods industry is a highly competitive industry.

  1. What factors are critical to the success of WFM?

Factors which are critical to the success of WFM are: the set-up of the grocery, the quality of products from the regional and national suppliers, the locations of the stores and the supply of organic foods, availability of quality natural and organic products, the employee and customer relations.

  1. What are WFM’s tangible and intangible resources?

The WFM focuses on revenue and providing job security to its workforce to lay the foundation for future growth. The company decided that the profit can not go in favor of quality to satisfy shareholders. The success is determined by customer satisfaction. The company also donates 5 per cent of its after-tax profits to non-profit organization. In the period 2000-2004, the company has achieved tremendous growth.

  1. WFM’s SWOT

Strengths

Weaknesses

  • High quality
  • Premium prices
  • Fresh and organic products
  • Limited number of suppliers
  • Huge selection
  • Large perishable inventory
  • Positive employee environment
  • Decentralized marketing
  • Wide product line

  • Reputation

  • Excellent customer service

Opportunities

Threats

  • Advertise more
  • Bad economy
  • Work more with local farmers
  • Conventional grocery stores with natural sections
  • Discounts and offering
  • Low spend per trip due to higher prices
  • Increasing attractiveness of health food industry
  • Supermarkets introducing organic products

  1. How should WFM deal with the anticipated shortages of natural and organic products in the future?

Investing in the development of sustainable agriculture, in educating people on healthy food and exploit new locations where raw materials are rich.

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