Assessing Whole Foods Industry Competitors (Rivalry)
Whole Foods faces significant competition both at the local level in served U.S. markets and globally from Carrefour, Tesco and Wal-Mart. In addition the mergers and acquisitions of competitors are leading to regional competitors gaining critical mass, with Wegman's and Winn Dixie being two examples. As a result of these factors the rating for this factor is high.
Pressure from Substitute Products
Whole Foods is facing moderate competition from health food stores, traditional supermarkets, and supercenters. The pressure from substitute products is therefore considered medium.
Bargaining Power of Buyers
Buyers have more options with every new health food store, launch of new providers of healthy-based foods and health-related products. Competitors are concentrating on price, convenience, evangelism of healthy foods and healthy living and lifestyle changes many consumers globally are looking for (Stuart, 68, 69). As a result, this factor is rated as high.
Bargaining Power of Suppliers
As the demand for organic foods is one of the highest growth areas of grocery stores and food retailing, the entire supply chain of organic products often has more demand for their products than they have products to fulfill all potential orders (Ebenkamp, 14). From local growers, independent and family farmers, food brokers and Co-ops, the supply chain for natural foods is still vastly underdeveloped. This translates into a high rating for this specific factor.
Strategy Discussion & Recommendations
From this analysis it is evident at Whole Foods excels at launching new stores, and needs to continue this approach to growth, in conjunction with acquisitions of companies that selectively fit with their business model. Using the internal metric of growing at 10-15% (Ebenkamp, 14) which is achievable given the company's existing organizational processes, systems and structure, the company needs to align their strategies to accomplish this level of growth in 2009 and 2010.
Second, Whole Foods needs to create coordinate campaigns that provide rapid access to new geographic markets and also focus on their unique value proposition to attract new consumers as well. As While Foods excels at partnerships, they need to consider regionalized...
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
True, the company has a highly cohesive ethic, regarding the environmentally friendly and ethically produced nature of its products. However, one problem that a supermarket chain will inevitably run across is that different areas of the nation have different tastes. This is why allowing self-governance is so important on a store-by-store basis for this chain. A Whole Foods in New York City might have more convenience vegan food, for
As more stores are offering organic strawberries, the student might decide to shop elsewhere. The shortage of time for many consumers may also reduce foot traffic at Whole Foods: consumers who used to stop at Whole Foods for specialty items but do the bulk of their shopping at a mainstream supermarket may eliminate their trip to Whole Foods, if they are working longer hours to make more money. Time-pressed
Entrepreneurial Approach M1 - Discussion I have always thought entrepreneurship is just about starting a business. However, it is interesting to learn that entrepreneurship is more of a mindset or a behavioural tendency as opposed to just pursuing a business idea. It is a way of thinking characterised by the desire to create or exploit opportunities, take risks, to be innovative, and to grow. This mindset applies to not only individuals,
Whole Foods Market The term whole food entails organic and natural food that gives customers opportunity to have ample range of products. Natural food refers to type of foods that are not having antibiotics or growth hormones. Organic are food that match to the standards that was defined in October 2002 by the U.S. Agriculture Department. Whole Foods Market became the leading retailer of organic and natural food in the world,
Rest Case study There is no such thing Q1.The origin of slavery can be traced back to late 1600's in Jamestown in Virginia. In early 1600's the Virginia Company came to America and established the colony of Virginia. In the process of establishing the colony the English settlers also brought with them Portuguese and Dutch traders to help in the establishment of the colony. The English settlers had previously failed in
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