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Whole Foods Market Analysis

Whole Foods Market Analysis. Background. Organic/Natural Food Retailer First stored opened in 1980 in Austin, TX Rapid expansion through opening new stores and acquisitions Explosive Growth Started to expand internationally http://www.youtube.com/watch?v=Vagc5qqm1_o.

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Whole Foods Market Analysis

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  1. Whole Foods Market Analysis

  2. Background • Organic/Natural Food Retailer • First stored opened in 1980 in Austin, TX • Rapid expansion through opening new stores and acquisitions • Explosive Growth • Started to expand internationally http://www.youtube.com/watch?v=Vagc5qqm1_o

  3. Internal Analysis - SWOT • Weaknesses • Premium price • Targets small niche of shoppers • Low international diversification • high concentration in U.S. market • Strengths • Leader in natural and organic food retailing • Staff is passionate in promoting organic food • Scale store size depending on location Internal • Opportunities • Natural/Organic food retailing is a growing segment • Many international markets where can expand to • Provide classes that promote healthy eating • Accepts locally farmed foods • Threats • Increased competition from other grocers • Growing gas price • Increased food cost • Economic downturn External

  4. Internal Analysis – Primary Activities • Inbound Logistics: • Several distribution centers • Operations • Each store department is run by one reliable team member • Reduce waste • Invest in customer relations • Outbound Logistics • Transportation • Material Handling • Packaging

  5. Internal Analysis – Primary Activities • Marketing and Sales • Focus on brand loyalty • Innovative Advertising • Focus on pesticide/hormone free and benefits to the earth • Service • Staff is well trained and knowledgeable • Team based environment

  6. Internal Analysis – Support Activities • Firm Structure • Company has 12 geographic division which has their own president • Advantage • Disadvantage • Human Resource Management - Great Company to work for • Support team happiness • Screening and training • Above average pay • Employee encouragement for promotion

  7. Internal Analysis – Support Activities • Technology Development • Renewable energy generation machine • Procurement • Suppliers: Each region pick their own supply chain • Whole Trade Guarantee • #3 on EPA’s Top 25 Green Power Partner • Completely eliminated plastic bags

  8. Competitors Analysis

  9. Recommendations • Create lower cost strategy • Private labels (like Kroger) • Decrease upstream supply cost • Increase market share • Price sensitive and health-organic market. • Market looking for less expensive dining option

  10. Recommendations • Increase the brand awareness, image, and loyalty • concentrated on determining store sizes and locations • Short-term implementation • hold radio station promotions • Use billboard ads to grow the name • Long-term implementation Launch national advertising promotions

  11. Questions?

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