...COMPETITIVE FORCES AND SWOT ANALYSIS Competitive Forces and SWOT Analysis Teresa Hamlett BUS 599 Strayer University Dr. Russell Handlon January 22, 2012 Competitive Forces and SWOT Analysis Got organic? Concerns for healthier foods have led to consumers purchasing alternative foods. Consumers have found solace with organic foods. Organic foods are considered to be like natural foods. These foods do not contain any harmful processing agents or ingredients or chemicals and pesticides. Whole Foods Market is a producer and seller of organic foods. The trends associated with retailing of organic foods have impacted those of Whole Foods Market. Other supermarkets who are now selling organic foods have created a competitive environment in which Whole Foods Market must vie with. A SWOT analysis will reveal the key strengths, weaknesses, opportunities, and threats Whole Foods Market must face. A further analysis of these will be useful in Whole Foods Market maintaining a competitive advantage in the marketplace. Organic Food Trends “According to the USDA, 2000 was the first year in which more organic food was sold in conventional U.S. supermarkets than in the nation’s 14,500 natural foods stores (Thompson 2009, Pg. C-4).” Supermarkets have stocked more organic foods over the last decade and have even setup sections that only have organic foods in those sections. As consumers are becoming more health conscious, worried about what is in their foods, and concerned about...
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...Running head: COMPETITIVE FORCES AND SWOT ANALYSIS Competitive Forces and SWOT Analysis Assignment #2 Whole Foods Market Strayer University BUS599016VA016-1116-001 Strategic Management July 17, 2011 Abstract This paper examines the business strategy of Whole Foods Market. The paper will also examine the competitive environment and significant threats to Whole Foods Market’s competitive advantage. The company’s competitive strategy and the impact of the trends in organic foods will also be discussed. Competitive Forces and SWOT Analysis Assignment #2 Whole Foods Market In 1980 Whole Foods Market started out as one small store in Austin, Texas. Today there are more than three hundred stores in North America and the United Kingdom. Whole Foods Market is a mission oriented company (http://www.wholefoodsmarket.com/company/). They speak of their mission in terms of Whole Foods-Whole People-Whole Planet. Whole Foods they search for the finest natural and organic foods available. Their mission is to find the highest quality, least processed natural foods. They search for foods without artificial additives, sweeteners, colorings, and preservatives. Whole People they are a people company. They are passionate about healthy good and a healthy planet. They create a respectful workplace where people are treated fairly and are motivated to succeed. Whole Planet they are committed to take care of the world. They support organic farming and sustainable...
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...Whole Foods Market Assignment #2 Competitive Forces and SWOT Analysis. Latrice Taylor Strayer University • Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. According to the USDA(United States department of Agriculture) Organic foods now occupuy a prominent shelf in the produce and dairy aisle of most mainstream U.S food retailers. The marketing boom has pushed retail sales of organic foods up to $21.1 billion in 2008 from $3.6 billion in 1997. The U.S. organic-industry growth is evident in an expanding number of retailers selling a wider variety of foods, the development of private-label product lines by many supermarkets supermarkets, and the widespread introduction of new products. A broader range of consumers has been buying more varieties of organic food. Organic handlers, who purchase products from farmers and often supply them to retailers, sell more organic products to conventional retailers and club stores than ever before. Only one segment has not kept pace—organic farms have struggled at times to produce sufficient supply to keep up with the rapid growth in demand, leading to periodic shortages of organic products.(USDA.Gov pg 3). As a result of the quick rise in the organic food industry Whole Foods found a selling nitch and advanced in the market of organic food sales. They opened up a chain of grocery stores that represented oorganic food sales and healthier living as a whole Whole Foods' growth...
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...Whole Foods Market: A Financial Analysis Throughout the course of time, changes have and will continue to occur in nearly every aspect of life. From the improvements in technology, to the evolution of the automobile, as well as everywhere in between, change is simply a part of everyday life. Perhaps one of the imminent changes upon society today is the food and drink intake of the world in general, but specifically the American people. Some grocery and supermarket companies such as Whole Foods Market have embraced this change with open arms and in turn built reputable, profitable companies. These companies are built around the general premise that natural and organics are better products for human beings to consume. It has become a new way of thinking throughout the United States with both producers and consumers reaping the benefits. The health consequences obviously affect the consumer, while the producers – i.e. Whole Foods Market – seek to better enhance the lives of the consumer while at same time creating financial stability for shareholders and stakeholders alike. The question for the future remains: is this just a fad or the latest trend, or will Whole Foods Market be able to retain its financial prowess for years to come? As a recent SWOT analysis indicates (“Whole Foods Market, Inc.,” 2010), “Whole Foods Market is a natural and organic foods supermarket chain that operates through several wholly owned subsidiaries” and “offers a broad and differentiated...
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...Addition Group Assignment April 17, 2007 How the EU is Changing the European Market By Page 2 of 9 Q.1.) Relate this story to the concept of SWOT analysis. Can you find any examples of leverage, problems, constraints, and vulnerabilities? Government officials envision the EU as a single market, an area without internal frontiers in which the free movement of goods, person, services, and capital is assured. This is a tall order in the current European Market as huge benefits are plentiful for some and lacking for others. The countries that are members of the EU house an regulatory environment with which local and multinational firms operate. What is the cost of the current situation for the European Union? The EU is one of the world’s biggest investors in promoting economic and social growth to the European markets. The European Union considers Foreign Direct Investment (FDI) as one of the key solutions to promoting development, economic and social growth to the European Markets. It is within the scope of framework that the EU follows a pro-development approach of long-term investments that will generate stable employment and growth for the European marketplace. The European banking industry has been slow in converting into a modern means of investment opportunities and lacks standardization of banking rules and regulations such as Germany. The German banking system slows the economy...
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...Whole Foods Case Analysis 1. (a) Whole Foods operates in the organic, or natural and specialty foods retail industry. Leading the industry, Whole Foods Market is the world's most successful natural foods grocery chain. Having recently acquired one of its main competitors, Wild Oats Market, Whole Foods currently competes with two other large grocery chainsKroger and Trader Joe's. The company also acquired Amrion, a company specializing in nutraceuticals (natural supplements with pharmaceutical-type benefits), creating considerable competition with General Nutrition Centers (GNC) nutritional supplements and dietary products. Additional competition is taking place in traditional grocery stores incorporating some organic products on to their shelves. 1. (b) The attractiveness of this industry and its potential for profit are functions of Michael Porter's five competitive forces model: barriers to entry, bargaining power of both suppliers and buyers, the threat of substitute products, and the depth of competition among rival companies. Barriers to Entry Currently, Whole Foods has no significant barriers to entry. Americans are becoming more food and health conscious and Whole Foods is catering to this demand by becoming the premier outlet for all-natural, organic food products, while creating a unique, cohesive brand. The company is growing a loyal customer base, and is offering the majority of its products at competitive prices. With more than 300 stores located in the US,...
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...Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market Organic Foods now occupy prominent shelf space in the produce and diary aisles of most mainstream U.S food retailers. Retail sales of organic foods have increased from $3.6 billion in 1997 to $21.1 billion in 2008. Whole Foods Market which is the world’s largest retail chain of natural and organic foods was founded in 1980. The company has stores in the U.S, Canada, and Great Britain with sales of $12 billion for year ending 2010. Among the trends impacting in the retailing of organic foods is the inclusion of organic products by mainstream supermarkets such as Wal-Mart, Kroger, Publix, Safeway and Save-a-Lot. In addition, stores such as Harris Teeter have introduced their own private-label brands of organics. The impact of this trend on the operations of Whole Foods is loss of customers and profit. As demand for organic foods increased, mainstream supermarkets would continue to expand their offering and selections. (Thompson, Strickland, & Gamble, 2009) Most of these supermarkets will leverage on their wide network of stores dotted all over the United States. Wal-Mart and Krogger had 2,297 and 2,477 stores respectively, as against 188 stores by Whole Foods for year ending 2006. Customers will therefore be attracted to the mainstream stores due to convenience and the fact that they have now become one-stop-shops. Secondly, retailing of organic products is experiencing...
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...SWOT Analysis. 1. Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. The trend for organic foods have been growing since the 1990s. Many Americans were trying to eat healthier and doing things to help them live longer. More and more foods were starting to be grown using pesticides and injected with hormones. Since the way food were being developed changed many Americans did not think it was healthy consuming additives to develop the foods. The demand for organic foods and products were increasing every year. Many people changed to organic foods and products to avoid the use of pesticides, freshness, health and nutrition, and genetically modified foods. Consumers also believed they were better for them but there is not scientific study proving that they are healthier. Farmers saw the demand for organic food and beverages growing over the years and they wanted to get in on the action. Many farmers started developing only organic farms. They saw that consumers were willing to pay more money for the organically developed foods. Larger companies even started offering and producing organic product such as organic ketchup, organically grown coffee, and organic chicken products. The companies wanted to also cash in on the new growing demand of the organic foods and beverages. 2. Evaluate the competitive environment of the firm: Apply Porter’s model and analyze each factor relative to the company. Whole foods developed...
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...Whole Foods an Organic Food Mogul 1. Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. There has been a major trend change in the retailing of organic foods. Those trends not only affect Whole Foods Market but the organic food industry as well. In an article written by the Good Food World Staff, they listed 14 trends that the organic industry and Whole Foods Market should lookout for. Listed are just a few that would have a serious impact on Whole Foods Market. • The Economy: with the economy slowing and the job market showing very little promise consumers are still wanting a healthier lifestyle. Low-income families have also joined in on a healthier lifestyle and learn to budget by saving money and using coupons. Although organics are here to stay consumers are wondering were the next dollar will come from. The natural /organic companies that can stay afloat will countinue to do well. • Social Networking: in the world of marketing word of mouth is one method of getting information out quickly. Internet tools such as Facebook and Twitter can help build social networks for the organic markets growth. They give insight on what other companies are selling and at what price. Social networking can also help with brading of certain products. • Organic and Climate Change: all to often society blames global warming for every thing. But there are many other factors that come into play like greenhouse gas emission. However...
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...having the costs associated with retail locations. • FreshDirect’s state of the art warehouse with 12 separate temperature zones, ensuring each piece of food it kept at its optimal temperature. • Expert staff providing excellent customer service. • Efficient supply chain with the elimination of the middle man. • Unique industry business model. • Superior website. • 5 star food quality rating system. • Extremely high standards for cleanliness, health & safety. Weaknesses • The majority sale in perishable items with very few options for un-perishables. • Constant changes in senior management. • Limited number of brands and sizes of packaged goods. • Expensive start-up costs. • The focus on only certain New York zip codes, with no market expansion strategy. • The dependence on only one main competitive advantage in the sale of perishables. • The use of multiple non-environmentally safe cardboard boxes in the packaging of delivered foods. Opportunities • Using their reputable brand name expansion of their business to other places locally and nationally. • International expansion. • Additional movement into the delivery of a variety of un-perishable items. • Environmentally safe packaging and delivery methods. • Strategic merger with other global grocery retailers. Threats • Competitors such as Whole Foods and Joe Traders moving into the FreshDirect neighbourhood. • Other online grocers such as YourGrocer delivering bulk to customers’ homes. • The increased...
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...B. PESTEL analysis The political factor: There is a new government policy called “manger-bouger” which aims at prompting the youth to have a healthier way of life doing sports and having a balanced diet. The economical factor: The economic crisis has affected almost every industry in the world. Consumers find themselves with less money in their pocket. But the frozen food market is based on quite low and affordable products for all consumers so the risk that consumers find cheaper alternatives to eat is not that high. The levels in the industry sales should keep steady. Nevertheless, the aspects of the economy that is most affecting the frozen food industry is the huge price increase of raw material since 2010. Distributors will have to reflect on their price this rise in order to keep their margin. The social factor: The “traditional” family scheme with the wife cooking for her husband and kids is disappearing because women are most of the time working as well. Women have therefore less time to cook but more and more men are cooking for the whole family. But more generally, people don’t spend so much time on preparing the food anymore. Yet, French hedonism on food is still a custom. Indeed, French consumers are very demanding for quality and diversity even if they do not have time to cook. Besides, because of a lower budget and of a need to eat fast working people tend to eat at the office where kitchen are provided. Technological factor: There is...
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...Sample Market Analysis Market Analysis Customers Family Farmers Choice has developed a database of present customer who buy on a regular basis and customers who have bought only occasionally as the opportunity presents itself, such as at farmers markets. Customer demographics show the current customers are in an income range of $45,000 or more, two income families, professional occupations, concerned about the environment and located primarily in urban areas. Research also shows these customers are Internet users and willing to order product from our business via the Internet. Research conducted by Farmers Choice has verified that there is a market segment large enough to justify the investment in the processing facility. Further, the premium these consumers are willing to pay will allow the shipment of products to nearly all geographic locations in the country. Focus groups, market surveys and product demonstrations at several locations were used to develop demographic profiles of each promising location so that zip codes could be used to easily identify future markets when expansion is deemed appropriate. (Note: Results of the surveys can be provided if additional information is desired.) A significant number of consumers are concerned about where their meat products are coming from and how these products are processed. The company will market directly to that group. Since they are highly informed consumers, however, a major task will be to establish credibility...
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...Company Analysis: Whole Foods Market Introduction Whole Foods Market is American supermarket chains headquartered in Austin, Texas. Today, the company is the world’s leader in selling natural and organic foods and has more than 360 stores in the North America and the United Kingdom (Whole Foods, Inc. 1). As a company, they seek the finest goods available, while maintaining the most faithful quality of natural and organic food items. In essence, they have an impeccable commitment to sustainable agriculture. Their motto is “Whole Foods, Whole People, Whole Planet” (Whole Foods Declaration). The company markets food products and dietary supplements along with body care items, articles of clothing, educational books and household items which include furniture, carpets, lighting, etc (Whole Foods, Inc 1). Some of their specialty items are meat, fish, cheeses, wine, vitamins, vegetables, fruits, prepared meals, animal nutrition products (Whole Foods, Inc 1). The company has an overall good reputation when it comes to customer’s health and diet. With the expansion of the Whole Foods Market, organic food is becoming more popular in families’ kitchens across the globe. One might wonder what contributes to Whole Food Markets nationwide success. As a whole, ethics, social responsibility, sustainability, competitive advantage, technology and innovation are some of the contributing factors to Whole Food Market’s success. Application of Chapter Concepts Ethics One of the factors that...
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...INTRODUCTION TO FONTERRA BRANDS LANKA (Pvt) Ltd Fonterra is the world's foremost exporter of dairy products, in authority for over and above a third of worldwide dairy trade and one of the topmost six dairy establishments in the world by turnover. Their international supply chain stretches commencingfarmhouses all over New Zealand to customers and buyers in above 140 countries. About 10,485 New Zealand dairy farmers, representing approximately 96 per cent of all dairy farmers in the country, accommodatingly own Fonterra. These farmers supply over 14 billion litres of milk respectively each and every year. 'New Zealand’s pastured-based farmhouses are the start of Fonterra’s supply chain, which encompasses to consumers in 140 countries and into customers’household needs in Australasia, Asia, Africa and the Middle East, and Latin America.' As a willing organization, Fonterra is maintained and organized by the people who make advantages from Fonterra’s services. Cooperative members share similarly in the earnings of the business. In order to be a Fonterra stakeholder, farmers have to supply milk to the establishment in New Zealand. Fonterra shareholders can earn one share for each kilogram of milk solids they supply to the co-operative, with the allowance of ainadequate number of shareholders providing milk under contract preparations. As a co-operative, Fonterra distributes practically all its revenue to shareholders in the form of expenditure. This encompasses a farm gate milk...
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...Whole Foods Market Strategic Management Table of Contents Introduction…………………………………………………………………….…….p. 3 Trends in the Organic Foods and the Impact on Whole Foods…………………........p. 3 Application of Porter’s 5 Forces Model………..…………………………….............p. 4 Most Significant Environmental Threat and Whole Foods Combat ………………...p. 6 SWOT Analysis….…………………………………………..………………........…p. 7 Sustaining Competitive Advantage...…………………………………...….………..p. 8 Summary….………………………………………………………….………..…….p. 8 References.…………………………………………………………..……………....p. 10 Whole Foods Market Introduction John Mackey cofounder and Chief Executive Officer (CEO) founded Whole Foods in 1980 with the purpose of providing organic foods to the grocery shopping public. This started a movement over the next 30 years that has brought organic foods to the common shoppers in many markets around the U.S. that had only been previously serviced by smaller health food stores or by their local grocery chain. The success of Whole Foods moving forward will be how they can succeed and maintain their profitability when unemployment remains high and Americans have less disposable income. This essay will look at several factors of Whole Foods, including latest trends, the competitive environment in the grocery industry, environmental threats, SWOT analysis of the business operations and strengths that must be leveraged to maintain a competitive advantage. Trends in the Organic Foods...
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