An Analysis of the Business Strategy of Whole Foods

Whole foods strategy consists of high margins on premium and natural foods. They also offer a wide variety of prepared foods for affluent buyers. Managers are given freedom to stock their stores based on local tastes. Mackey also opposed the idea of unions because of their parasitic existence.

Stiff competition within the industry would be one of the key threats that Whole Foods will face. Strong competitors, coupled with grocery stores that have incorporated natural food sections into the stores, have made it more challenging for Whole Foods to maintain its pole position in the market. As the market for organic foods expands rapidly, mainstream supermarkets are also competing for a slice of the pie. Strict government regulations and the lack of prime locations have made it more

Whole Foods is a retailer that specializes in organic foods and it has done an excellent job of determining its target market and how to position itself. Instead of going head to head with large food retailers such as Wal-Mart, Whole Foods has found a niche market that works perfectly for itself. This niche market is one that prides itself on being health conscious and environmentally responsible and Whole Foods has done a great job of positioning itself in the same way through its environmentally safe actions and its use of the local community to stock its stores. However, as Whole Foods grows and expands, a person has to wonder if the company will be able to maintain this same position or will have to make

Whole Foods has employed much fewer resources in both advertising and marketing than its competitor supermarkets . Whole Foods has begun endeavors to cabinet its affordability through in-store guides, but this must reach audiences outside of the stores.

They constantly innovate the value chain by engaging employees to find way to drive cost downs. • They pursue a comprehensive social responsibility strategy like animal protection, environmental sustainability, … • They also gain a strong customer base that shows extreme brand loyalty to Whole Foods. It is strong enough that word-of-mouth advertising is actually sufficient to keep their customer base growing. Does the company have a winning strategy?

Whole Foods had dominated the US organic food market until 2015. Other company such as Costco and Walmart which have mass number of products, all began to step a foot into natural organic foods segment at very competitive prices thanks to their nature. The industry has became very competitive.

Based on Whole Foods’ key strategic elements the company has a generic competitive strategy that is a focused differentiation strategy. Whole Foods’ strategic elements are based on the company’s core values and is used as a guide for the company. One of their key strategies is their product line. Whole Foods made it their mission to provide fresh fruits, vegetable, baked goods, seafood, and other foods to consumers. Each product has to meet the company’s high-quality standard.

The business level strategy that Whole Foods Market utilizes is differentiation strategy. Whole Foods is focused on selling natural and organic foods. The intention is that customers will value the high quality of the organic food and eventually pay a high price. Also, WFM nurtures customer loyalty by providing unique products. For example, Whole Foods features “foods that are free of artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats.” (7) Also, Whole Foods has implemented animal welfare standards. The animals are not treated with antibiotics when preventing diseases and infections or when developing their growth. Additionally, to demonstrated customers that they care for the farm animals they developed a 5 Step Animal

Whole Foods has incorporated the strategy to become the top food retailer that sells the healthiest foods that are both natural and organic. The company’s strategy classified as differentiation strategy, where they attract specific market consumers and supplying the store with products that satisfy customers’ preferences and tastes. To make this possible, Whole Foods uses numerous elements for their strategy so that they can accomplish everything from the products they sell, expanding store locations, prices, marketing, and growth.

The firm’s ability to produce quality organic foods acts as the strategy for limiting adverse competition from its opponents. Furthermore, Whole Foods Market has significantly exploited the product part of the marketing mix, which has positioned it as the sole producer of the best and quality organic foods in the US; therefore, building a strong identity. The concept behind this is to create a consumer experience of “more than just food,” by establishing a talking store, which exceeds a typical supermarket. The third strength is good employer reputation, where the company is dedicated to forming a long and healthy relationship with their team members.

Whole Foods main product is organic, healthy food. Their target market is people who want to eat healthy, people who are active, vegetarians, and people with special diets. Their competition is another organic food store, Trader Joe’s. However, their main competition is regular grocery stores, like Kroger, who offer organic food at a lower cost. They are different from their competition because their products are pure, healthy, top-of-the line and environmentally friendly. Their products are fresh and have no artificial preservatives. They offer their own store brand name called, 365 which is less

Whole Foods’ market strategy is built upon their fundamental differentiation from conventional supermarkets. We strive to meet our strategy by working under the motto of Whole Food, Whole People, Whole Planet. At Whole Foods we use a focused differentiation strategy to offer unique products to our customers in a narrowed market. We focus on selling high quality organic and healthy foods that our customers can feel comfortable eating at a higher price. Whole Foods’ competitors include Kroger, Trader Joe’s, and Fresh Market. These three competitors operate under different strategies to set themselves apart in the grocery market. Kroger operates under the cost leadership strategy. They set the floor price in the market that still allows them

Whole Foods was the first large grocery chain to market healthy and organic as the stores main selling strategy. Whole Foods being the first to do this, has lead in many ways to them being the strongest in the market. The more established offer some of this but at Whole Foods it’s the main selling point.

Whole Foods Market began in 1970 as a local supermarket. Over the past 31 years, Whole Foods Market has grown from a single store in Austin, Texas, to becoming one of the worldwide leaders in providing consumers with natural and organic foods. They have grown to over 300 stores in both North America and the United Kingdom. (Whole Foods Market, Inc., 2011) This report examines the chief elements of the strategy that Whole Foods Market has put into place. Also, it uses past financial data to provide an assessment of the condition of the company going forward. Those assessments include recommendations of future actions, along with concerns I have about the way the company is currently operating and some difficulties that may be on the way.

The rising popularity of natural and organic foods has led to the success of Whole Foods Market. This $15.4 billion company has found its niche as “America’s Healthiest Grocery Store”. They provide a one of a kind shopping experience with knowledgeable and friendly employees, as well as the freshest and highest quality products available.