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 integrating companies into their overall business model
Weaknesses:
Slow Global Growth
Global Strategies Slow To React to Market Conditions
Difficulty managing retail costs globally
Lagging the industry in overall performance on a sales and profit-per-employee basis
Opportunities:
Continued growth in demand for organic products
Growth prospects look very positive in the UK
Continued acceptance of private label organic products
Celebrity chefs and celebrities increasingly endorsing organic food
Higher levels of concern and focus on health among millions of Americans, Canadian and British
Threats:
Quality problems in the supply chain
Very aggressive global competition
Economic conditions
Supply chain potentially could be purchased in part by mass merchandisers
SWOT Discussion
Despite a global economic recession, the company continues to grow and attract new customers, mainly because the value people are placing on being healthy has never been greater. Driven by the high costs of healthcare and the belief on the part of many consumers that the dollars they spend on groceries ought to go for the highest quality and most nutritious available, Whole Foods continues to experience revenue growth. The strengths of aligning their brand with a very high quality, healthy image of food has served the company well and will continue to attract new customers over time. This aspect of their strengths needs to be looked at from the standpoint of potentially acquiring key suppliers for the most common products, produce, fish and meats they sell. The company needs to grow more aggressively in the UK, where there is the potential for significant growth. In addition, the focus on how to create more efficient global operations needs to be looked at, as this area could be easily turned into strength for the company over time. There is also the need to align the brand with celebrity chefs and celebrities who have chosen to pursue organic...
This shift in the broader culture presents Whole Foods with an exceptional growth opportunity and chance to be the trusted advisor to this and future generations of consumers (MacDonald, Whellams, 2007). Overall, the company must also concentrate on supply chain management, execution and focus on keeping their value proposition highly differentiated and unique. If the company can accomplish all of these strategies in a coordinated and synchronized approach, it will continue to be successful. The growth in Europe is only beginning and getting all of these elements together into a concerted strategy will further differentiate and strengthen the company in those markets as well. The need for continually creating trust with loyal and new customers must pervade all strategies, as the greatest growth will occur when trust is earned and kept.
References
Bokaie, J.. (2008, July). Whole Foods eyes the everyday. Marketing,16.
Fabian Capitanio, Adele Coppola, & Stefano Pascucci. (2009). Indications for drivers of innovation in the food sector. British Food Journal, 111(8), 820-838.
Drichoutis, Andreas C., Panagiotis Lazaridis, and Rodolfo M. Nayga, Jr. (2006). Consumers' Use of Nutritional Labels: A Review of Research Studies and Issues. Academy of Marketing Science Review, 2006, 1.
GD Karagiannopoulos, N Georgopoulos, & K. Nikolopoulos. (2005). Fathoming Porter's five forces model in the internet era. Info: the Journal of Policy, Regulation and Strategy for Telecommunications, Information and Media, 7(6), 66-76.
Chris MacDonald, & Melissa Whellams. (2007). Corporate Decisions about Labelling Genetically Modified Foods. Journal of Business Ethics, 75(2), 181.
Michael C. Ottenbacher, & Robert J. Harrington. (2009). The product innovation process of quick-service restaurant chains. International Journal of Contemporary Hospitality Management, 21(5), 523-541.
Michael E. Porter. (2008, January). THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY. Harvard Business Review: Special HBS Centennial Issue, 86(1), 78-93.
Reder, M.. (2009). CEO Postings - Leveraging the Internet's Communications Potential While Managing the Message to Maintain Corporate Governance Interests in Information Security, Reputation and Compliance. DePaul Business & Commercial Law Journal, 7(2), 179.
Figure 1:
Porters' Five Forces Model
