Question No. 1
What are the chief elements of the strategy that Whole Foods Market is pursuing? Use Strategy Diamond to explain this part.
• Product: The company has a broad range of products including Natural and organic items
like beverages, snacks, frozen items, Meat and poultry, Dairy Products, Fresh Sea food, baked products, coffees, cheese and different supplements, etc
• Market Segment: Health Conscious People of many ages and ethnic group
Technology: Biodiesel Fuel for its Distribution Fleet Vehicles, Green power technology to reduce energy consumption
• Geographically 3 countries
1. United states
3. Great Britain
Internal development and Acquisition:
Expansion of Company occurred initially by internal development. They Opened larger new stores and reallocated smaller old stores to bigger sites. Whole Foods preferred to locate stores in busy shopping spots and premier real estate sites. They usually did analysis of education levels, population density, income levels, sales projection and many other factors before they locate a store. Besides, parking space was a very important factor to sales of a supermarket, especially for Whole Foods that attracted higher income earners.
Company also acquired many small owner managed chain that were desirable for it but its biggest acquisition was the purchase of its biggest competitor, Wild Oats Market, in 2007
Differentiation achieved Through:[pic]
• High Quality natural and Organic product
• Customer Service
• Health Care coverage
• Environmental friendly (Go Green) approach
• Social responsibility
• Store Designs and environment
• Efficient team members
Whole food market grew very fast and entered into new big cities and even new states.
Whole Food market gets return by charging premium prices due to unmatchable product quality and customer services. People are willing to pay premium prices because they believe that they are doing something good and food is healthier.
Question No. 2
Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry?
Yes, the strategy is well matched to recent development and conditions in the natural and organic foods segment of the food retailing industry; it focuses on supplying healthiest products to the consumers and its meeting its goal by never compromising on quality. Their strategy of expansion and opening of new stores is matched with the arising demands of the customers as they are getting more aware of healthy life styles by getting the labeling standards of USDA that makes customer more educated about merits of various organic products. More over by looking at the certified organic farms in 2005 and in 2006, farmers are becoming more interested and attracted in organic farming. In order to be differentiated Whole food has skilled and efficient workforce and attractive colorful designs of stores, environmental friendly operations and various facilities and social well being that are required to meet the need of standards set by USDA. Question No. 3
Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like or dislike about the company's motto "Whole Foods, Whole People, Whole Planet"? Do the motto and the principles underlying it (exhibit 1) really matter at this company or are they just nice words and cosmetic window dressing? Explain.
Yes John Mackey has a good strategic vision for becoming globally renown. His Vision (Whole Food ,Whole people and Whole planet) is not bounded to be the best natural and organic food provider rather being wider it allows to explore new arenas in order to be the best retailer in the location that it consider desirable. For...
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