Case 14 Whole Foods Essay
Whole Foods is a retailer that specializes in organic foods and it has done an excellent job of determining its target market and how to position itself. Instead of going head to head with large food retailers such as Wal-Mart, Whole Foods has found a niche market that works perfectly for itself. This niche market is one that prides itself on being health conscious and environmentally responsible and Whole Foods has done a great job of positioning itself in the same way through its environmentally safe actions and its use of the local community to stock its stores. However, as Whole Foods grows and expands, a person has to wonder if the company will be able to maintain this same position or will have to make …show more content…
With respect to Whole Foods’ targeting and positioning strategies, what challenges will the company face in the future as it continues to grow and expand?
As Whole Foods continues to grow and expand, it will face numerous challenges to its targeting and positioning strategies. One of those challenges is its distribution network. Currently, Whole Foods distribution is localized, but as it continues to grow, it may have to develop a more centralized distribution strategy. The company wants to avoid a supply chain distribution network, but it cannot expect to expand the company and still keep a localized distribution network. As the company opens more stores, the local network may not be able to keep up with the growth and Whole Foods will be forced to come up with a more centralized strategy.
A second challenge the company could face is maintaining the culture of the company. Part of the appeal of Whole Foods is the company’s unique culture which includes the treatment of its employees to the charitable acts that the company takes part in. As Whole Foods continues to grow, it will also see an increase in its expense, which could affect how it operates. For instance, the company currently pays 100 percent of its employees’ health-care premiums and places a cap on salaries of its highest-paid team members. However, as the company grows and hire more employees, it may not able to continue these