Analysis of CPM: Whole Foods CPM shows a small marginal difference between them and their competitors Trader Joe’s and Wegman’s. Competing on price, quality, variety, and brand will enable the company to increase sales and become more competitive than Trader Joe’s and Wegman’s. Shopping at Whole Foods has declined by 19% and with the acquisition of Wild Oats, their long-term debt increased significantly. When compared to Trader Joe’s shoppers who spend 38 dollars per customer and Safeway whose shoppers spend 45 dollars per shopper, Whole Foods comes in lower with shoppers spending on average 28 dollars per customer. Whole Foods goal should consist of closing stores that are not profitable and reduce
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If the US Market fails, Whole Foods can suffer a major impact economically.
• Although Whole Foods distinguished themselves from the competition by delivering great service and having a large inventory of organic foods, their prices are higher than their competitors.
• Whole Foods have a limited network of suppliers who are farmers located near their stores. If the farmers whom they perform business have and increase in cultivating or suffer an impact from weather conditions, this could cause an increase in prices resulting in consumers paying higher prices for goods.
Analysis of (IFE): Consequently, the average total weighted score is 2.49. Compared to other companies in the supermarket industry, Whole Foods average total weight falls below average. With fierce competition from other supermarkets, Whole Foods is faced with a need to remain competitive. After acquiring Wild Oats supermarkets, Whole Foods later closed some of those stores, decreasing their long-term debt. Due to Whole Foods over expansion in the market, their focus should pertain to closing stores that are not profitable and using technology to efficiently distribute goods reducing costs. Increasing advertising and offering incentives such as buy one get one free offers will increase traffic in their stores. Retain employees by offering competitive pay in benefits along …show more content…
REDUCE OPERATING COSTS Offer a long-term contract with farmers to reduce costs. In 2016, its store operating costs were $4,554,000 and the cost of goods was 10.31 billion. In particular, their sales for that year was 15.72 billion. Lowering their operating costs, distribution costs, and cost of goods will help them to compete with their competitors such as Wal-Mart and Trader Joe’s.
4. STRATEGIC ACQUISITIONS AND JOINT VENTURES Whole Foods is dependent mainly on the US Market. Opening new stores and investing in any new joint ventures could prove detrimental to the company, especially with their long-term debt being significantly high. Whole Foods should negotiate with their local farmers on reducing costs, and creating a guaranteed delivery clause to benefit the organization on meeting the demands of consumers while reducing overhead costs and expenses for the company.
5. CLOSE STORES THAT ARE NOT PROFITABLE Stores that are not profitable should be closed and Whole Foods primary focus should be to pay off its long-term
If the US Market fails, Whole Foods can suffer a major impact economically.
• Although Whole Foods distinguished themselves from the competition by delivering great service and having a large inventory of organic foods, their prices are higher than their competitors.
• Whole Foods have a limited network of suppliers who are farmers located near their stores. If the farmers whom they perform business have and increase in cultivating or suffer an impact from weather conditions, this could cause an increase in prices resulting in consumers paying higher prices for goods.
Analysis of (IFE): Consequently, the average total weighted score is 2.49. Compared to other companies in the supermarket industry, Whole Foods average total weight falls below average. With fierce competition from other supermarkets, Whole Foods is faced with a need to remain competitive. After acquiring Wild Oats supermarkets, Whole Foods later closed some of those stores, decreasing their long-term debt. Due to Whole Foods over expansion in the market, their focus should pertain to closing stores that are not profitable and using technology to efficiently distribute goods reducing costs. Increasing advertising and offering incentives such as buy one get one free offers will increase traffic in their stores. Retain employees by offering competitive pay in benefits along …show more content…
REDUCE OPERATING COSTS Offer a long-term contract with farmers to reduce costs. In 2016, its store operating costs were $4,554,000 and the cost of goods was 10.31 billion. In particular, their sales for that year was 15.72 billion. Lowering their operating costs, distribution costs, and cost of goods will help them to compete with their competitors such as Wal-Mart and Trader Joe’s.
4. STRATEGIC ACQUISITIONS AND JOINT VENTURES Whole Foods is dependent mainly on the US Market. Opening new stores and investing in any new joint ventures could prove detrimental to the company, especially with their long-term debt being significantly high. Whole Foods should negotiate with their local farmers on reducing costs, and creating a guaranteed delivery clause to benefit the organization on meeting the demands of consumers while reducing overhead costs and expenses for the company.
5. CLOSE STORES THAT ARE NOT PROFITABLE Stores that are not profitable should be closed and Whole Foods primary focus should be to pay off its long-term