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

Internal Analysis - SWOT Internal External Strengths Leader in natural and organic food retailing Staff is passionate in promoting organic food Scale store size depending on location Weaknesses Premium price Targets small niche of shoppers Low international diversification high concentration in U.S. market 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

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

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

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

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

Competitors Analysis Company/CompetitorCovered RegionNumber of storesStrategy Whole FoodsU.S. Canada United Kingdom ~350Whole store with high quality organics KrogerUSManyOrganic is only a section of the store. Trader Joe’sUS350Lower quality Sprout8 regions160Less variety, low price Central MarketTexas9similar

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

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

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