Whole Foods Market Case Analysis Essay

1760 Words Oct 15th, 2010 8 Pages
WHOLE FOODS MARKET, 2005: WILL THERE BE ENOUGH ORGANIC FOOD TO SATISFY THE GROWING DEMAND?

Introduction

Whole Foods Market has developed into the world’s largest retail chain of organic foods supermarkets. Their fast growth success is mainly due to being high selective core values. The company employs more than 32000 workers and also with an average size of store of approximately 3000 square metres.

Analysis

General environment

Economic

An affluent Organization for Economic Co-operation and Development (OECD) is a good whole foods market. The production of organic foods is challenged for the growing demand. With the rising trend of fitness and health consciousness, Whole Foods Market has growth rapidly.

Global

In
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There are the existing of Internet Grocers, Local Farmers’ Market, Supermarkets, Convenience stores, Fast food and Restaurant chains, Wholesale Clubs, Mass Merchandisers and Super Centres.

Threat of substitute product

No substitute products for Organic foods and this represent a low threat. Essentially the industry has to emphasize on the substitution of the organic food brand.

Threat of new entrant

There are a few new entrants, which are Trader Joe’s company and Wild Oats Market. This two are the new entrant in this industry however this represents a moderate threat as for the Trader Joe’s company, it has no service department and it has limited space of store, as compared to Whole Foods Market. Secondly, as for Wild Oats Market, the founder was lack of experience in this industry and they was emphasizing on the learning of the employees which does not bring too much advantages to the company.

Is this an attractive industry?

In general, the organic food/ natural food industry is a very attractive industry. Consumer is always being encompassed by the efforts of promotion of green mission, to be healthy and they want to leads a healthy lifestyle. All these are basically just pushing people to go natural in their choices of product.

Competitor analysis

Initially there were no competitors in the industry. However, today, the growth of the industry of organic foods is increasing rapidly. The others competitors are Trader Joe’s company

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