[how to compete in a highly competitive market]
What steps has Whole Foods taken in appropriately planning strategy? Assuming Whole Foods must develop a new business model, how should they go about this?
The steps that whole food uses in order to achieve its strategy "providing both natural and organic food offering to customers at a wide variety of products and premium prices and aiming at having a sustainable future for the coming generations and at the same timing valuing human creativity, diversity and individual choice." includes: Providing high quality goods that are minimally processed to customers and high profits to investors. Striving to become the leading retailer store of the worlds by Merging and acquisition of similar stores in the industry. Whole foods trying to fulfill their vision of sustainable future and improving standard of living across the whole industry by leading through example. Engaging in ethical business practices.
Providing motivational, respectable work environment.
Carefully setting up stores that matches the demand of the local community. Opining stores according to demographic factors such as opening in areas where 40% or more of the residents have college degrees since they are more aware of nutritional issues.
Due to the high increase of competition Whole Food can develop a new business model by:
Studying the main competitors of Whole Food and how they are succeeding in their business. Increasing the target market due to the increase of awareness and demand of natural products. Tring to having a well-planned supply chain to decrease our costs. Increasing their products offerings in order to become more flexible. Trying to increase the sales of each store instead of opening new stores.
What opportunities and threats can be identified through examining Whole Foods in the context of the external environment?
Since restaurants lost 50% of their customers due to the recession whole foods saw this as an opportunity to tap into the pre-maid meals sector. They sold pre-maid meals to people on the go. This increases their sales and raised their stock The increase of awareness in the importance of implementing healthy living style and eating healthy can be seen as an opportunity to whole foods The upcoming of the green movement and environmentally friendly products due to the recent awareness of how processed food could be harmful not only on human beings but also on the ecosystem. The increase of the demand on prepared food because of the fast moving world. Self-image and “looking fit” has increased tremendously over the years, whole food can therefore make use of such a trend and attract new customers.
The major threats of whole food has been the entering of already well set successful grocery stores such as Wal-Mart, Costco, Trades Joe’s etc. since such a stores has a wider variety of products, this give them a competitive edge because they are more flexible than whole food. Due to the economic recession, the expenditure income of consumers is low. All natural foods are considered expensive The inflexibility of acquiring new stores as a result of the anti-trust laws. A growing demand in organic natural products brings new competitors to the market
Who are the whole food competitors? Identify the strengths and weaknesses of the whole food and its major competitors?
1- High quality products
2- High ethical business conduct
3- Location based on demographic factors
4- Stores are carefully set up to fit the demand of the local community 5- High social responsibility
1- Limited targeted market: people who are health conscious and care about organic food. Trades Joe’s
1- Premium natural and organic foods with lower prices
2- Wide expansion across the states.
No service department
Low average store size...
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