The bargaining power of suppliers
Suppliers have a relatively high bargaining power. On a market like organic foods, suppliers are very important for companies' activity. In other words, they practically depend on their suppliers.
As a consequence, suppliers represent the most important environmental factor of influence for Whole Foods, and the same situation applies in the case of any organic foods company. This business consists mainly in the raw materials that the company uses to produce the goods it sells under this brand. The company's activity depends on the quality of the raw materials, and on any potential delays from suppliers. The prices negotiated with suppliers have a direct impact on the production costs, and on the end-user price.
SWOT Analysis
Strengths
The company's strong position on the market in ensured by the numerous strengths the company benefits from. First of all, the company is renowned by the quality of its products. This further creates competitive advantage in comparison with the company's competitors. The company benefits from a long tradition on the market, becoming one of the most prominent brands in the field, and granting the company the experience is required for managing a business in this industry. Another strong point is represented by the wide range of organic foods provided by Whole Foods. Also, the company is able to cover a large geographical area, which helps increase the number of customers, and increase their loyalty.
Weaknesses
The most important weakness of Whole Foods is represented by the high prices of its products. As mentioned above, the company sells premium products at premium prices. There are customer segments that find such prices unaffordable.
Also, the company's distribution system is not a flexible one, determining the company to lose ground in favor of certain competitors.
Opportunities
The organic foods market segment is in continuous development process, which means there is...
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