Whole Foods has been doing an amazing job keeping up with their financial performance and customer demands. The more customers who demand their business the more locations they open. This in return gives Whole Foods more revenue as each year passes. Whole Foods report its annual fiscal years on a 52 week basis. Whole Foods expectation for 2016 are 3-5% growth in sales.
(Exhibit 2) In additional, the stores plan to attract a younger generation of customers by incorporating a tech environment. The 365 stores have iPads all over the store that customers can use to order to go food items or scan product labels to read reviews. (2) Another important thing is that 365 stores will be smaller than Whole Foods stores. It is estimated that 365 stores will “be about 30,000 square feet compared with 45,000 square feet for Whole Foods Market.”
Trader Joe’s, a specialty store, and Whole Foods Market, an upscale grocery store, are in the running as well. Whole Foods focuses on natural and organic products, and Trader Joe’s provides unique product selection and other quality products, as well as a unique customer experience. Fortunately, H-E-B has maintained a strong position in the industry, but they must continue to prioritize their pricing, quality, and customer experience, ensuring they meet their consumer needs to stay afloat in the vastly changing industry. H-E-B’s current strategy consists of many aspects that focus on customers, innovation, and the community. These components have allowed H-E-B to remain in the competitive position it has in the market.
The CEO of Whole Foods, John Mackey is committed to the ethical treatment of their customers, employees, and the environment. Whole foods not only focus on their financial success but also emphasize a ‘multifaceted’ value creation. Mr. Mackey believed that by valuing employees, customers, suppliers, shareholders, and the environment, it would lead to a consistent growth in profits (Cheretis & Mujitaba, 2014). Whole foods take on the Philanthropic responsibility by taking a global approach to be a good corporate citizen (Kreitner & Kinicki, 2013).
We have Analyze each competitor’s Sales, Assets, Market Share, Employees, Market Value etc. are relative threats to Whole Food Market. After analyzing the above critical success factors, on the average, Kroger Company is in the best company and first position overall. Kroger Company is leading position in all critical success factors of Sales, Assets, Market Share, Employees, Market Value, Especially market share is 4 times more than other companies. Whole Foods Market is the second position, compare the market share with the same-phase competitors. Whole Foods Market’s sales and market value and so on are all more and better developed.
In this article we learn about Whole Foods’ responses to an increasingly competitive market. As more firms joined the healthy grocery store market with relatively low prices, Whole Foods found itself unable to compete. It had difficulty lowering its own prices and so sales fell. Then they made a large mistake of overcharging customers for incorrect weight on their produce items; this also contributed to the fall in sales. Now they have announced that they are cutting 1,500 employees to save financial resources for opening their new chain “365” which will sell healthy food for low prices, and to increase technology investment.
They truly appear to have a solid vision that when properly executed will start with the employees and have an effect on the communities that they are present in (Kreitner, R., & Kinicki, A., 2013). Whole Foods is simply are not only focused on their profitability, but also having a heroic impact on everyone they interact with, thus resulting in a ripple effect
Whole Foods strengths are in line with the company’s mission statement and core values. They used their slogan of “Whole Foods, Whole People, and Whole Planet” to form their core strengths. Many of Whole Foods strengths focused on people, the environment, and providing consumers the best quality that they could provide. Weaknesses such as high prices and low outside advertising can put the company at risk of consumers deciding to go to other grocers that provide organic products if they become satisfied with that substitute. With location Whole Foods is still expanding into more markets, so that weakness will continue to shrink as the company expands.
Another choice for Whole Foods is to check what their main competitors are offering and offer something better than that. They should also implement similar strategies as their competitors. For example, the company can
The grocery industry between 2011-2016 had an annual growth rate of 1.4 % and total revenue of $602 billion in the United States (Industry, 2016). Consequently, “the structure of food retail has fundamentally changed in the past two decades, via the rise and proliferation of supercenter stores” (Volpe, 2014, pg. 325). Supercenter stores are very large facilities that have a full line supermarket and multiple merchandise located within their stores (Hanner, Hosken, Olsen, & Smith, 2015). In fact, the largest supercenter in the United States is Wal-Mart. As a result, Wal-Mart made $482.1 billion for their 2016 fiscal year (About Us, n.d.).
New marketing, pricing strategy to meet or beat competition in the U.S. market for intensive growth. 4. New product development offered to gain more customers and revenue. Selected Solution So far Whole Foods has gained the success with the rising popularity of natural and organic foods primarily in the U.S. market. After conducting a SWOT analysis (found in the appendix), it appears an expansion into global markets where a high presence of consumers like in the European markets will provide an enormous potential growth due to the large population holding
The new Amazon owned Whole Foods now proves a legitimate threat to supermarkets, a threat supermarkets never face
The firm 's basic strategy for success and Key factors that have contributed to attaining its competitive position. Whole Foods basic strategy included the following core competence. They wanted to only give their customers the highest quality products. They open up locations in profitable areas.
Whole Foods is part of the grocery industry which makes for a competitive market. Just like all other grocery markets, Whole Foods “offers produce, packaged goods, bulk, frozen, dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, body care, pet foods, grocery, and household goods” (Yahoo, 2009). To set itself apart from all other grocery stores like Shoprite or even Walmart, Whole Foods is known for its expertise in selling natural and organic foods where about 45% of their exclusive brands are either “certified organic or “Non-GMO Project Verified” (Flanagan, 2015). In 2014, Progressive Grocer declared Whole Foods as “the largest natural and organic foods supermarket in the U.S., the 5th largest public food retailer, and the 10th largest
In all Trader Joe’s is one of the leading super markets in the U.S., but after careful analysis of their operations I believe there are opportunities that are currently being ignored by the company. The company doesn’t need to act on all the recommendations that I made, however it would be in their best interest to do so. Not only would the company grow at a faster pace, but it will make strides in areas that haven’t been occupied before. Despite these current pitfalls, Trader Joe’s still is a popular option in their
