Essay about Related Diversification / Blue Ocean Strategy
1). Related diversification/ Blue Ocean Strategy:
• The growing health awareness has created a huge demand for organic restaurants which provide health food options to the health conscious people, willing to spend on healthy and nutritious food items, rather than eating fast food (especially for office goers looking for healthy lunch options).
• Whole Foods should create an organic restaurant chain, where they hire gourmet chefs to prepare tasty and healthy food in front of customers.
• None of their competitors have utilized this strategy so far.
• Seeking customers that prefer to “eat out” rather than making food at home gives Whole Foods the opportunity to capture consumers who are “busy” and cannot cook at home.
• Whole Foods increases the willingness to pay by providing healthy, tasty and fresh food alternatives to people who would otherwise eat burgers, pizzas and fries. The demand for organic foods increased by approximately 10% ($2.5 billions) between 2010 and 2011 and none of the restaurants have successfully tapped into this demand yet.
• Whole Foods decrease the cost of their products because they get the raw materials directly from their stores and do not have to look for other suppliers to be able to produce fresh food at low prices.
2). Boost e-commerce sector/ Online Stores:
• Increase online ordering with ad spaces on popular health/athletic websites like ESPN, Men’s Health, etc.
• Agreement with Google for search words like “online…