Threat of New Entry:
Beginning a food business of any kind is difficult. This is one possible plus for Whole Foods. There is a great deal of red tape about sanitation and hygiene, when dealing with food preparation and sales. The requirements and regulations regarding organic products are even more onerous.
SWOT
Strengths
Whole Foods is a long-standing and trusted brand name in organic produce. Consumers who believe in the organic movement have long trusted Whole Foods to provide high-quality products. Additionally, Whole Foods is not simply a 'crunchy' health food store: it has highly exclusive lines of international products, wines, cheeses, and bath and body products. For customers who are vegan or vegetarian, have children with allergies or harbor other issues that require them to carefully watch their food ingredients and intake, Whole Foods is trusted for fair labeling.
Whole Foods also makes ethics a part of its brand image, something its competitors do not engage in: For example its 'starred' rating of animal husbandry, to ensure that animals raised for consumption are treated in an ethical fashion, is unique. And its stores are attractive places to eat in as well as shop. Even its employees are enthusiastic about the company's mission to make the world a better place through food.
Weaknesses
'Whole paycheck.' This sums up Whole Foods greatest perceived weakness in a nutshell -- the company is seen as expensive and catering to the affluent that have the luxury of putting their consciences before their wallets. Additionally, for customers who are organically-focused, there are many cheaper substitutes without the price sticker of Whole Foods. Because it is exclusively organic, customers cannot pick and choose what they want to buy. For many customers, going organic is not an all-or-nothing prospect -- instead they must prioritize. For example, a mother...
The analysis of the weaknesses and threats are based on an analysis of the companies' filings with the Securities and Exchange Commission (SEC), specifically their annual reports, 10Qs and periodic filings of business activity. Table 2: While Foods SWOT Analysis Strengths: Continued revenue growth despite a challenging economy Well-executed growth strategy domestically in the U.S. And globally Strong growth in brand equity and value as a trusted advisor in organic foods Strength in acquiring and
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