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 …show more content…
Consumers today are looking for retailers who carry a wide variety of organic and natural products. Whole Foods meets this consumer demand.
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 job of conveying what Whole Foods is all about.
Core …show more content…
Whole Foods “walks the talk” when it comes to fulfilling its core values. Whole Foods has extremely high standards when it comes to choosing its suppliers and products. Whole Foods has strict standards which are adhered to when it comes to the ingredients used in the products it sells; no artificial colors, flavors, preservatives or chemicals are found in the products at Whole Foods. Whole Foods also contributes to local communities by donating a percentage of its earnings to charities and non-profit organizations. Whole Foods’ core values have definitely contributed to its success. Whole Foods boasts a very low employee turnover rate; one much lower than traditional big box grocers. Whole Foods offers competitive benefits packages for its employees and promotes from within the company. Employees seem very satisfied with working for Whole Foods, which is a major contributor to its success. The high quality of products offered and the relationship with its suppliers has also been a major success factor. Whole Foods actually works with the farmers and suppliers, often times extending loans so that its high quality standards can continue to be met.
Whole Foods financial performance seems to be on an upward trend after suffering from the recession in 2008. Earnings per share increased in 2009. No dividends were declared in 2009, however, shareholders are likely willing to