Trader Joe Case Study
- The economy downturn would decrease the disposable income and the needs of luxury goods would be reduced.
- The market competition and also the intrusions
- Slack of rules and regulations on organic foods
Current …show more content…
The strong concept behind their strategies was to establish an interactive store atmosphere which makes consumer enjoy shopping for food. In addition, they want to create a pleasurable experience of consumer. On the other hand, Whole Foods Market intent to make their customers to put Whole Foods Market as their ‘third home’ besides their real home and work, to relax themselves and also interact with others in the environment. As for the financial analysis of Whole Foods Market, according to the case study, the profit margins from the financial analysis have been decreased from the year of 2005. In the past three years, the debt of the Whole Foods Market has increased dramatically as the cost of goods sold is increasing too. In addition, Whole Foods Market has very low revenues as compared to the competitors. Whole Foods Market adopted differentiation strategy in their business. Organic foods basically belong to category which it cannot easily be substituted; however it can be presented in a different way which does by Whole Foods Market. Whole Foods Market stressed the importance on the quality of the foods, and also about their service that they offered to the customers. Besides that, it has also started their business to achieve international expansion by setting themselves in Canada for three years and it also developed another six stores in the United Kingdom. International expansion is