Marketing Analysis : Whole Foods Market Essay

1023 Words Dec 11th, 2015 null Page
Industry Analysis
Whole Foods Market is in the Supermarket or grocery store industry. The industry can be considered as a part of the retail industry due to the operation and overall revenue each business receives. The industry’s main source of production includes produce, dairy products, and frozen foods.
Porter’s five forces analysis for the Supermarket industry is used by Whole Foods Market to build an analysis of the level of competition throughout the industry. Each of the five forces have a different effect on the company from low to high.
Threat of New Entry
The threat of new entry competitors is low in the industry. It is hard for new businesses to make any successful strategy in the industry due to high costs in the industry. Whole Foods is safely in the top 50 business in the industry, but the 50 largest companies in the industry generate approximately 70% of the revenue throughout. (Grocery Stores & Supermarkets, N.D.). This leaves very little for the new companies to work with.
Buyer Power
Buyer power in the industry is moderate to high. Major facts that increase buyer power is the loyalty of consumers. Loyalty can be poor due to competitive pricing and consistent price changing. Also, Customers tend to shop different stores for better pricing on certain items.
The economic standings also has an impact on the industry. The economic condition, however, has less of an impact on the industry over others because food is a necessity. An example of the economy…

Related Documents