Whole Foods Strategy
Prior to the recession of 2008, Whole Foods’ strategy focused on Growth, Store Location, Product Line, and Pricing. After going public in 1991, Whole Foods implemented a Growth strategy that included opening new stores and acquiring smaller chains in attractive markets. Store Location strategy involved finding locations in affluent, urban areas. High traffic shopping destinations and prime real estate spots were part of this Location strategy. The strongest strategic element Whole Foods adopted was its Product Line. Whole Foods specialized in a huge selection of organic and natural foods not found in traditional grocers. Pricing strategy for Whole Foods aimed to be competitive. A majority of its private label foods were considered value-priced. Higher prices on other items did not seem to deter Whole Foods’ customer base from shopping there. Once the recession took hold of the economy in 2008, Whole Foods modified its strategy. Whole Foods began to aggressively market its value-priced items in the store with signs, aisle end caps, and offered a flier with coupons and advertisements for sales. Whole Foods didn’t stop there; it implemented a new Expense strategy, cutting costs wherever it could. Whole Foods also began to focus more on a Merchandising strategy. Each store’s layout was specifically tailored to be pleasing to all customers. Whole Foods Strategy Matches Up
Whole Foods strategy is very well matched to the current market. Consumers today are looking for retailers who carry a wide variety of organic and natural products. Whole Foods meets this consumer demand. John Mackey
I think John Mackey has an excellent strategic vision for Whole Foods. Whole Foods meets a need that most big box retailers don’t. Consumers are obviously pleased with the strategy as well, as evidenced by their willingness to pay higher prices for the quality they desire. I like the company’s vision statement. The mission statement does a good...
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