A common way to assess the strength and weaknesses of a company is a SWOT analysis. A breakdown of the Strengths, Weaknesses, Opportunities and Threats. In doing the following we can properly assess the best way to fix a company’s problems or maintain its hold in the market place.
Wholefoods as a company has a lot going for it however being a niche market it has quite a few things working against it. The fact that organic products are not subsidized by the US governments means that many farmers are not as keen to grow them, resulting in less crops and a slower grow time. While the demand for organic food is ever increasing, the supply has yet to catch up, making the produce available come at a steep price. Wholefoods has made a name for itself as an all organic food store, however in doing so they have boxed themselves into a niche market, which they can’t seem to get out of. This niche market also leaves little room for growth
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Quite the opposite in fact, they have ever increasing competition from other organic grocery stores and in-store organic brands of larger grocery stores (such as Stop & Shop or Dave’s). Due to the success of Wholefoods many stores are mimicking the style and layout of the store, trying to evoke the more pleasurable shopping experience that Wholefoods evokes. Many customers who used to go to Wholefoods for the relaxing experience that came with it can now go to more pocket book friendly prices at other stores, especially due to the current economic situation in which the US finds itself. More and more people are spending less money and organic foods are seen as a luxury that can easily be dropped in attempt to tighten the purse strings during the leaner times that come with a recession. In addition, Wholefoods have no way to prepare for possible changes in local and federal government regarding organic food, which could make or break the industry, Wholefoods first and