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Company Strategy: Whole Foods On The Surface, Essay

Company Strategy: Whole Foods On the surface, Whole Foods has a unique, almost counterintuitive philosophy. Rather than stressing value and volume in terms of food sales, it instead offers more expensive organic and specialty goods. However, its niche marketing strategy has proven to be extremely lucrative. Whole Foods is an interesting case study as a company in the manner in which it has simultaneously capitalized upon popular trends in food without trying to be 'all things to all people.' In 2013, the company had same-store sales growth of 7.5%. It has rapidly expanded: "the company's growth strategy is to seek new locations for its stores in highly populated, often urban, areas. Each store averages around 38,000 square feet, and about 30% of the company's stores were acquired, meaning that they were other health-food stores that were bought out and re-branded as Whole Foods" (Frankel 2013).

Whole Foods' vision and mission statement affirms its commitment to organic produce, sustainable practices (including recycling) and minimizing waste. Its website proclaims: "We believe that companies, like individuals, must assume their share of responsibility as tenants of Planet Earth" (Our mission and culture, 2013, Whole Foods). It has also pledged to support community organizations such as food banks and contributes 5% of its total net profits to not-for-profit...

The company boasts of the generous benefits it offers employees and a team-based approach which awards collective displays of excellence. Quality and respect for employees, according to Whole Foods, is in keeping with its vision.
Whole Food has clearly defined standards for all of the foods that it sells that are very different from the average retailer. Not only is all of its food organic; it also only sells cruelty-free meat, and dairy and sustainable seafood. It has a long list of artificial substances like aspartame and BPAs which are banned from its shelves, and will not stock a product that contains them, even if the product is popular. Once again, this may sound counterintuitive to making a profit, but this is keeping with Whole Foods' desire to protect its brand.

If Whole Foods does not show integrity, there is no reason for consumers to pay premium prices to shop at the store. Many stores are cheaper than Whole Foods (one reason it is nicknamed 'Whole Paycheck') and more stores (including Wal-Mart) are carrying organic items. However, its extensive gourmet, organic prepared items combined with the belief that all of the products on the…

Sources used in this document:
References

Brown, Joshua. (2013). What Whole Foods learned from the recession. The Reformed Broker.

Retrieved: http://www.thereformedbroker.com/2012/08/12/what-whole-foods-learned-from-the-recession/

Dennis, Brady. (2013). Whole Foods executive explains strategy behind labeling genetically modified foods. St. Louis Dispatch. Retrieved:

http://www.stltoday.com/business/local/whole-foods-executive-explains-strategy-behind-labeling-genetically-modified-foods/article_7d2c6059-5159-5d63-b716-04ccf1b7b85a.html
http://beta.fool.com/kwmatt82/2013/01/30/whole-foods-best-growth-yet-come/22955/
http://www.huffingtonpost.com/2013/01/17/obamacare-could-mean-more-competition-for-whole-foods_n_2498507.html
http://www.wholefoodsmarket.com/careers/our-mission-and-culture
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