Whole Foods Case Study

Topics: Brand, Oat, Avena Pages: 3 (709 words) Published: February 8, 2012
Whole Foods
Case Study

Whole Foods
Case Study
Introduction Problem Statement  Supporting Facts
Whole Foods is an organic grocery chain that was founded in 1980. Since the origination the companies motto has been Whole Foods, Whole People, Whole Planet. This motto encompasses their mission to provide the purest quality of food, employ the best team, and continue to be involved in the communities they are a part of through philanthropic involvement. (Gamble & Thompson, 2010) Problem Statement

How did Whole Foods purchase of the Wild Oat’s brand negatively impact their company objectives, core values, and profit margin? Supporting Facts
2007- Acquisition of Wild Oat’s; largest competitor
Store count increased by 109
oAcross 23 states
o15 new metropolitan areas
o5 new states
35 stores sold immediately following the acquisition
Overall purchase cost $700 million -$166 million= $534 million total purchase cost •$137 million debt inherited from purchase of Wild Oat’s •9 Wild Oat’s stores closed down
7 Wild Oat’s shut down/relocated
oDid not fit in line with brand strategy or real estate strategy (Gamble & Thompson, 2010) 


Brand Image
High Quality
Customer Service
Demographic Based Location
Company MottoWeaknesses
Price point perception
Over expensive products
Low value to some customers
Customer loyalty
Debt due to acquisition
Private Label Expansion
Brand Perception
Low turnover threat from farmers
Low spend per trip due to high prices
Increase in competition
(Gamble & Thompson, 2010) 

Analysis Conclusions & Alternative Solutions
Whole Foods managed to be a sustainable and self-sufficient company from the time of its founding in 1980, up until the time of its acquisition of Wild Oats. While the company did manage ot overcome the challenges and losses of the acquisition, they would have been better off for having not made the deal. The case clearly...
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