Whole Foods Case Analysis
Situational Analysis –
Strengths: High quality-price point Brand-Non union-Customer satisfaction /service-Growth/profit-Processess-Innovative-Differentiating factors-Management-Employee oriented-Internet creating organic foods educated customers. Weaknesses: Dept-High inventory cost-Price point-Narrow Target customers Base-Declining net income-Fast expansion-Low cash reserves-lack of innovation-High staff costs-High health care for employees-Limited add and marketing-Wild acquisitions –Unionization-Lower market share-commodity Opportunities: International expansion-Increasing demand for products-Becoming and staying as top leading organic producer-Expanding private label-partner with new customer portals-Consumers against big box stores- Partner with new customer portals. Threats: Competition-Stability and recession- Sameness experience-Diseases tied to organics- Became too big and fancy for customers-No more stores to acquire chains-food recall-contamination-Lower ad budget- .
Problem Statement ––
Whole Food faces new treat of competition and the challenge of an outdated growth model.
Critical Issues –
(Segmentation strategy) Target audience for Whole foods?
Price sensitive or Health sensitive, Quality ,Selection
A) Cost of inventory
B) Out leveraged by competitions buying power
C) Competition is increasing
Alternative Solutions (15 pts.) –.
A. Maintain and Keep up with mission statement and core values.(keep growing) B. Sell Whole Foods.
C. Maintain current differentiation strategy because they are leading the market. D. Decrease employee costs.
E. Focus on international markets since Souring USA economy hurt sales. F. Open Smaller stores and increase marketing.
5. Solution (10 pts.) –
Open Smaller Stores and increase marketing. They are under the industry average. There is room for improvement.
6. Summary of...