Whole Foods Market Case Analysis

Topics: Organic food, Whole foods, Whole Foods Market Pages: 9 (1768 words) Published: October 5, 2010


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.


General environment


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.


In United Kingdom and North America, there are more than 270 stores of Whole Foods Market. Due to the huge amount of stores, the business of Whole Foods Market has gradually increased in global trade. When there is an increase in global trade, the business will then gained opportunity to expand its business into new niche and the standards of food are then not varying. On the other hand, China emerged as superpower which is one of the countries in the world that has tremendous economic power and this also help to enhance the business.

Political/ Legal

As for Japan, United States, and also the European Union, the standards of ‘Organic’ are affirmed by legislation and regulation. However, this may not exist in other countries.


The representative of Whole Foods Market would be on the National Organic Standards Board. It concerns more about health conscious, the education of health awareness of the consumer and also the sustainable agriculture.


The store of Whole Foods Market is located in a neighbourhood each where 40 per cent of the consumer has a college degree. In addition, this ensures that the consumer will have further knowledge about nutrition. On the other hand, the baby boomer generation would also be one of the factors that lead to the growth of Whole Foods Market. On the other hand, the urban singles, whose are having extra disposable income also present an opportunity for the growth of Whole Food Market.


Whole foods Market applied business processes and green mission on the business. As for business processes, Whole Foods Market uses website and paperless ordering system to enhance the business in the industry. Furthermore, under green mission, the company uses wind power, power monitors as well as solar and biomass in uplifting the business.


The market of organic food in global market brings in big opportunity to the business. The size of the store hinders the customers, the prices are high, and also the local grocers increased the alternatives of the organic foods are belongs to the business threats.

Industry analysis


Whole Foods market industry carries both organic and natural food products and it emphasized on health conscious and helped to develop standardization of organic foods and more humane treatment of animals. The company vision is to maintain a sustainable future which means they want the next generation to live with values human diversity, creativity and personal preference.

Bargaining power of suppliers

As the bargaining power of Whole Foods Market is greater, it would then be able to threaten the existing suppliers who have less market alternatives. The amount of suppliers of organic foods would also be the challenges of the suppliers. Furthermore, the variation of manufacturers could also judge the loyalty of the suppliers.

Bargaining power of buyers

The dominance buyer of this industry would be Wal-Mart because it provides low cost products and it is a great choice for people who are not willing to pay a premium price for foods. The grocery market was insensitive towards the conditions of the economic. For instances, the competition between Whole Foods...

Bibliography: Hanson, D., Dowling, P. J., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2008). Strategic Management Competitiveness & Globalisation (3rd ed.). South–Western college, Cengage Learning Australia.
Robert, S. K., David, P. N., & Edward, A. B. (2008). Developing the Strategy: Vision, Value Gaps, and Analysis. Havard Business School Publishing.
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