Whole Foods Case Study Essay

Through analyzing the Whole Foods Case Study you are able to determine that Industry has continued to grow its profitability at a slow rate, while the natural foods market continues to increase its profitability at an increasing rate. When you compare Whole Foods Market to the industry, you are able to see how Whole Foods has differentiated itself. Whole Foods Market has differentiated itself from the industry as a whole by putting its focus on the organic/natural foods sector. Whole Foods Market focuses on offering its organic/natural products to a more specific segment of consumers, unlike the rest of the industry that offers a more broad variety of differing products in order to obtain business from a much greater group of consumers.
Power of Suppliers When considering that there is a great amount of competition within the industry as well as a vast amount of suppliers to meet the demands of the supermarkets/groceries, you will notice that there is very little power that the suppliers have. This allows for the industry to see low levels of strain placed on their profitability when it comes to putting products as well as produce on the shelves. For the industry you have to take in consideration of the vast amount of suppliers available to …show more content…
The reason you see the ROS drop so dramatically from 2004 to 2005 was due to the many consolidations through bankruptcies and acquisitions as mentioned in the Case Study. Through the consolidations and so forth in 2004 80% of sales was accounted for from two suppliers. In only having two suppliers it gave them the power over Whole Foods Market, in return you see its ROS drop significantly over this one year period. The reason that you see the equity multiplier slowly decreasing is due to the fact that Whole Foods Market is financing less and less through debt, but more through