My chosen organization, Trader Joe’s, has not taken part in diversification. Once again, I have chosen their competitor, Whole Foods, for this assignment.
The organic supermarket chain Whole Foods has diversified with a related business strategy by launching a new chain of branded stores in the United States under the branded name “365”, which will be geared to millennial shoppers. The 365 store concept is an internal development approach, as they embark on promoting their new, lower-priced brand to appeal to a larger group of shoppers who are looking for a quality product, at a price they can afford. The new stores will supplement, not replace the original Whole Foods Market. The organic market has become very competitive; therefore, Whole Foods is branching out to remain competitive with their rivals. The new stores all have digital signs, scanners to scan prices, and digital scales to print out price tags for a faster shopping experience (Schlosser, 2016). As stated in our textbook, “internal development is appealing to a business as the parent company already has in-house most of the resources and capabilities it needs to piece together a new …show more content…
Co-CEO John Mackey said, "We're very happy with the initial start of the first couple of stores. We're very happy with the way it came out. We think we've created a very successful new business model, which we're going to expand rapidly. And we'll have more information about that next quarter" (Bowman, 2016). Based on social media responses, consumers have been impressed (Moskowitz, 2016). It is still too early to determine if this venture into smaller, lower priced stores will be successful, but total sales increased to a record $3.7 billion for the third quarter ending July 2, 2106 (Whole Foods Market Reports Third Quarter Results, 2016). The company expects to report sales growth in the fourth fiscal quarter which ended September
The organic supermarket chain Whole Foods has diversified with a related business strategy by launching a new chain of branded stores in the United States under the branded name “365”, which will be geared to millennial shoppers. The 365 store concept is an internal development approach, as they embark on promoting their new, lower-priced brand to appeal to a larger group of shoppers who are looking for a quality product, at a price they can afford. The new stores will supplement, not replace the original Whole Foods Market. The organic market has become very competitive; therefore, Whole Foods is branching out to remain competitive with their rivals. The new stores all have digital signs, scanners to scan prices, and digital scales to print out price tags for a faster shopping experience (Schlosser, 2016). As stated in our textbook, “internal development is appealing to a business as the parent company already has in-house most of the resources and capabilities it needs to piece together a new …show more content…
Co-CEO John Mackey said, "We're very happy with the initial start of the first couple of stores. We're very happy with the way it came out. We think we've created a very successful new business model, which we're going to expand rapidly. And we'll have more information about that next quarter" (Bowman, 2016). Based on social media responses, consumers have been impressed (Moskowitz, 2016). It is still too early to determine if this venture into smaller, lower priced stores will be successful, but total sales increased to a record $3.7 billion for the third quarter ending July 2, 2106 (Whole Foods Market Reports Third Quarter Results, 2016). The company expects to report sales growth in the fourth fiscal quarter which ended September