Essay on Mt 460 Whole Foods Analysis

886 Words Jul 3rd, 2013 4 Pages
Whole Foods Analysis

Introduction
Whole Foods Markets is a grocery store chain that specializes in natural and organic foods. The company prides itself on delivering the highest quality of natural and organic foods to their customers. With the help of some smart acquisitions, Whole Foods has grown to become the largest natural and organic food chain in the United States. The company credits their success to staying true to their mission statement and their original formula.
Synopsis of the situation
Whole Foods has been around for over 30 years. During this time, the landscape of the market has changes immensely. The company’s founder John Mackey has some big decisions ahead of him. With the changing economy and a more competitive
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farmers grow organic foods, we could be facing a shortage of our natural food supplies. The demand of the product and the scarcity of its availability will eventually drive the costs of those goods through the roof. It is not just bad for the consumers, it will also be bad for the retailers; especially those who only deal in this market.
Alternative solutions
One alternate solution for Whole Foods would be for them to diversify. They could start carrying regular products like a traditional grocery store. Look at some of the regular stores that began selling natural and organic foods. Costco and Sam’s Club have become competition since they have incorporated organic food sections within their current stores (Harasta, Hoffman, 2007. They are doing both natural and regular foods. This shows Whole Foods that selling both is a viable option.

Selected Solution of the problem
The solution that I have selected for this issue is for Whole Foods to contract with organic farmers. If they enter into a long term contact, they will be guaranteed that they still have their food supply and the costs will be locked in. This would be a win-win for the chain and the farms. Whole Foods is large enough to be the only customer for a farm. By creating their own source of supply, Whole Foods will surely remain anchored as the leader in the natural and organic foods.
Implementation
Implementing this process should not be difficult. Whole Foods will have to raise the current prices

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