Whole Foods Market:

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In the past, Whole Foods was a successful venture and highly regarded as the primary destination for locally-grown organic foods. It was a small store that had mostly college-aged people or hippies as customers. This image of a small store environment that focused on providing food from local growers has drastically changed. Now, Whole Foods stores are much bigger, have more variety, and attempt to target a large market of organic consumers. Despite its tremendous growth across the country and into the U.K., the chain struggles with its share price.

In this strategic management analysis, we will discuss both the external and internal environment as it relates to Whole Foods. These areas directly affect the profitability and positioning of the company, especially in regards to its strategies and our recommended strategies for improvement. This includes an industry analysis, the industry forces that affect Whole Foods, value chain analysis, and VRIO framework including its core competencies, resources, and capabilities.

We will also evaluate its current performances and the strategies they are enacting currently to improve its profitability which include:

-Bigger and More Stores
-Provide Goods from Local Farmers
-Broad Target Market

Following this evaluation, we will propose these recommended strategies to build upon its strong reputation and past successes:

-Go Smaller
-Focus on Marketing to Well-educated Upper-Middle Class
-Ally with Up-scale Grocers in its Geographical Markets
-Exit Strategy – Whole Foods Brand Name

We feel that this strategic analysis and recommendations will improve the profitability of Whole Foods. The background analysis lays the foundation for successful strategies that we have observed in the company as well as our own recommended strategies that we believe the company should enact.

This project was conducted with the help and guidance of Dr. Quoc Van Qien Pham of the Pacific Lutheran University School of...
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