...Target, Publix, and Wal-Mart are the most obvious and known rivalry for Kroger. Some of these contenders force a lot of test to Kroger, for example, their greatest rival Wal-Mart, which is right now considered the most grounded retail organization in the U.S. (Supply, 2009).There are likewise consumer related issues encountered by a considerable decent amount of these partners, similar to low levels of consumer dependability. Components like this add to an abnormal state of rivalry for Kroger inside the business, particularly when consumers choose other options, such as...
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...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 increase in demand year after year. This is due to increase in healthier eating pattern by the populace as a result of education...
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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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...RUNNING HEAD: 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...
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...look at the changing trends of grocery retailers, profitability and strategic position. Included is a PESTEL analysis and Porter’s Five Forces model for a closer look at Kroger and the industry. Competition is a big threat and since Rodney McMullen became CEO of The Kroger Company in January 2014 the company has rapidly gained market share and is currently second only to Wal-Mart (United States Department of Agriculture, 2014). With recent strategic acquisitions Kroger is better positioned to sustain their level of growth. There are several problem areas that Kroger will need to stay on top of and plan for how to combat those areas. We will provide a couple recommendations on the strategic direction that will most benefit and sustain competitive advantage for The Kroger Company. Introduction The Kroger Company was established in 1883 by a man named Barney Kroger who opened the first store in Cincinnati, Ohio. Since the opening of that store, Kroger has been an innovative leader in the grocery industry. With annual sales exceeding $108 billion it is one of the world’s largest retailers. Kroger can boast the following firsts: ● 1st to establish bakeries ● 1st to sell meat and groceries under one roof ● 1st grocery chain to routinely monitor product quality and scientifically test foods ● 1st to test an electronic scanner ● 1st grocer to formalize consumer research Kroger also manufactures food and has 37 food processing facilities. These products are 26% of the total...
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...of organic foods has continued to increase. Sales rose from $1.8 billion in 2000 to $6.5 billion in 2007 (Thompson, Strickland & Gamble, 2009, p. C-11). Trends that can negatively impact Whole Foods Market are “through a loss of sales, reduction in margin from competitive price changes, or greater operating costs such as marketing” (Annual Report, 2009). The major trend that affected Whole Foods Market was mainstream supermarkets, such as Safeway, Kroger and Publix, expanding its grocery selection to include organic products (Thompson, Strickland & Gamble, 2009, p. C-5). Prior to the introduction of organic foods, it was rare to shop at a local Safeway or Kroger to purchase these items. In addition, some stores have introduced their own private label of organic products. It is now not uncommon to walk into one of these supermarkets and find an aisle or section dedicated to organic products. The impact this could have on supermarkets that specialized in organic foods, such as Whole Foods Market, is a loss of customers and profits. Mainstream supermarkets currently provide everyday items that customers shop for on a regular basis. For those customers that purchase organic foods, these mainstream supermarkets have now become a one-stop-shop. Convenience can be a very attractive factor to customers....
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...Andrew Wash GBA 490-321 Written Case 1 February 12, 2014 Table of Contents Issue #1 ……………………………………………………………………………… 2 Issue #2 ……………………………………………………………………………… 3 Issue #3 ……………………………………………………………………………… 4 Recommendation ……………………………………………………………………. 5 Dominant Economic Characteristics ………………………………………………... 7 PESTEL Analysis …………………………………………………………………… 8 Five Forces Analysis ……………………………………………………………….. 10 Drivers of Change in the Industry …………………………………………………... 12 Current Strategy …………………………………………………………………….. 13 Competitor Analysis ………………………………………………………………... 15 SWOT Analysis …………………………………………………………………….. 17 Financial Analysis ………………………………………………………………….. 19 Issue #1 Trader Joe’s first problem is that information is occasionally leaked regarding the identity of their private label suppliers. Trader Joe’s thrives off keeping the identity of their suppliers a secret to all consumers and media in order to maintain the integrity of their products. Since 80 percent of the products sold at Trader Joe’s are private label, the identity of the supplier is not known because the product is sold under the Trader Joe’s brand name. Information leaks regarding Trader Joe’s suppliers could damage their brand image because it could cause Trader Joe’s to lose its charm to consumers and because it could make other companies wary of supplying their goods. First, information leaks could cause Trader Joe’s to lose its charm in the eyes of the consumer. There were news reports spread within...
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... 1. Supermarket Industry Analysis In 2013, the traditional supermarket industry is unattractive because of: a) Existence of powerful substitutes in the form of large discount retailers (Wal-Mart, Target), warehouse clubs (Costco, Sam’s Club, BJ’s, and pharmacy chains (CVS, Walgreen’s) that have increased emphasis on grocery sales. * Because increased traffic leads to increased sales of higher margin items in retail stores, there is growing attractiveness for retail stores to enter grocery industry * Retail leaders such as Wal-Mart and Target run highly efficient operations. Coupled with a large volume sale philosophy, both are able to take market share from traditional supermarkets through significant price cuts. As such traditional supermarket share has dropped in last year from 67% to 51% with the growth of retailers participating in grocery sales * Lack of differentiation across products and brands gives consumers a high degree of bargaining power because they incur little to no switching costs between rival competitors and brands (see below) and because of the growth of substitutes. Customers who want to do all their shopping both retail and grocery supplies either in small volume purchases or in bulk have many options to choose from (Wal-Mart vs Schnuck’s vs CVS vs Costco) b) Strong competitors across all segments of supermarkets, which can be broken down into traditional, premium, and discount stores, * The supermarket industry...
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...Whole Foods Markets: An Economic Buoy in a Sea of Uncertainty Whole Foods Markets: An Economic Buoy in a Sea of Uncertainty There are many economic factors affecting business today. This is no less apparent in the case of Whole Foods Market Inc (WFM); a leading retailer specializing in natural and organic foods. The economic, social, legal, technological, and competitive forces that affect other companies more directly affect a retailer with high visibility and a niche market such as WFM, yet the firm shows continued performance over competitors and increased profits for shareholders. WFM continues to navigate the market showing gains in profit, a dedication to the consumer, and competitive advantages that allow them to remain a strong competitor in a new and high growth market. WFM shows continual growth in a time of financial instability for many consumers and businesses. The growth plans of WFM have allowed the company to expand extensively over the last 33 years. The New York Times (2013) states, “As of September 25, 2011 Whole Foods Market operated 311 stores in the United States, Canada, and the United Kingdom” (Company Information). WFM has a strong history of growth that continues to be a basis of the company’s strategic plan. Current plans include the opening of 1000 stores in the United States in the coming years. This extensive growth plan can only be supported with a strong economic backing and the support of consumer spending. WFM has shown that they currently...
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...intensified compensation in the supermarket industry. In practice, the effective of a right strategy depends on the ability to outperform the business or gain a competitive advantage. This can only be achieved by having a proper mechanism to monitor, evaluate and control the strategies that have been selected. The globalized forces and marketing stimulus, customer’ behavior is now shaped towards having a planned weekly or monthly shopping from supermarket. This would be real opportunity for supermarket lie STO supermarket which provides more than one stop shopping for customers to save their valuable time spent on shopping from different supermarkets or corner shops. The political instability in male emphasizes more on saving their items. However, STO super mart practicing the concept of customer’s orientation in every service customer. As both macro and micro environment is very dynamic, the strategies need to be continuously revised based on it in ordered to succeed. Some of the strategies such as introduction of price checker and self-checkout system need to monitored and controlled well when compared to other strategies II. About STO Super Market People’s Choice Supermart was established in July 1991, with the intention of providing an inexpensive mode of shopping by introducing the concept of Supermarket for the first time in the Maldives. Supermart is located at the ground floor of STO trade Centre. Supermart is the largest supermarket in the Maldives and holds a variety...
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...1 History & Global Presence Walmart, which is considered the largest international discount retail chain, was founded by a man named Sam Walton. He first opened a store by the name of “Walton’s 5 & 10” in 1950. When the store became successful he wanted to go bigger which prompted him to open the first Walmart in 1962 in Rogers, Arkansas. Walton wanted to have a store which offered low prices and still quality products. A lot of people doubted him and didn’t think he’d be too successful. They thought his low prices wouldn’t gain him enough profit to stay afloat. By 1967, only 5 years after opening the first Wal-mart, Walton owned 24 stores. The company went public in 1970 and by 1988 it was the most profitable retailer in the US. In March of 1992 Walton was awarded with the Presidential Medal of freedom by President George H. W. Bush. The Presidential Medal of Freedom is the highest civilian award of the United States and it recognizes “exceptional meritorious service.” (infoplease.com) Not even a full month afterwards, Walton passed away on April 5, 1992 of cancer. His oldest son then took over as chairman of the the corporate board of directors. In 2000 Wal-mart.com was founded for US Customers to be able to buy products online. Wal-mart now operates stores in all 50 US States and Puerto Rico. Walmart now has Supercenters, discount stores and neighborhood markets which all vary in size. When finding out so much information about Sam Walton and the history of Walmart I...
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...The Saw Brewery “Crazy Owl” Full of Life, Full of Fun The Saw Brewery 999 Heritage Overlook Kennesaw, Georgia. 30188 1-800-SAW-BREW sawbrewery@gmail.com Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities. Table of Contents 1. 2. Executive Summary .................................................................................................... 1 Situation Analysis ....................................................................................................... 2 2.1. Internal Analysis ................................................................................................. 2 2.1.1. The Company................................................................................................ 2 2.1.1.1. Mission ....
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...Walgreens: Strategic Evolution 1 America’s largest drugstore chain, Walgreens, had 8,210 locations by 2011, including 7,761 drugstores. Almost 75 percent of Americans lived within five miles of a Walgreens pharmacy, and more than 6 million customers were served each day. Walgreens issued more than 800 million prescriptions annually, representing 20 percent of the U.S. market. Its online business, Walgreens.com, had almost 17 million visitors per month. Walgreens’ strategy had evolved for more than a century in business. By 2012, the company faced a number of major strategic questions, including international expansion and a changing health care environment. History of Pharmacy2 People have been trying to create remedies for illnesses and ailments since the beginning of time, but most historians credit Babylon with the first organized apothecary. This was followed by the Romans, who created a system of pathology and therapy that became standards for Western medicine for more than 1,000 years. For the most part, though, pharmacy remained a sketchy and shadowy business for centuries, practiced by (among others) witch doctors and alchemists. Advances in medicine and the Renaissance era led to more structured and scientific approaches. In 1240, German Emperor Frederick II issued a proclamation establishing the practice of pharmacy along three tenets: (1) separation of the pharmaceutical profession from the medical profession; (2) official supervision (regulation) of pharmacy; and...
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...An Integrated Approach to Strategy Running Case Featuring Wal-Mart Wal-Mart’s Competitive Advantage (Chapter 1) ● Working Conditions at Wal-Mart (Chapter 2) ● Wal-Mart’s Bargaining Power over Suppliers (Chapter 3) ● Human Resource Strategy and Productivity at Wal-Mart (Chapter 4) ● How Wal-Mart Became a Cost Leader (Chapter 5) ● Wal-Mart’s Global Expansion (Chapter 6) ● WalMart Internally Ventures a New Kind of Retail Store (Chapter 8) ● Sam Walton’s Approach to Implementing Wal-Mart’s Strategy (Chapter 9) Strategy in Action Features A Strategic Shift at Microsoft (Chapter 1) ● The Agency Problem at Tyco (Chapter 2) ● Circumventing Entry Barriers into the Soft Drink Industry (Chapter 3) ● Learning Effects in Cardiac Surgery (Chapter 4) ● How to Make Money in the Vacuum Tube Business (Chapter 5) ● The Evolution of Strategy at Procter & Gamble (Chapter 6) ● Diversification at 3M: Leveraging Technology (Chapter 7) ● News Corp’s Successful Acquisition Strategy (Chapter 8) ● How to Flatten and Decentralize Structure (Chapter 9) Practicing Strategic Management Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating...
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...An Integrated Approach to Strategy Running Case Featuring Wal-Mart Wal-Mart’s Competitive Advantage (Chapter 1) ● Working Conditions at Wal-Mart (Chapter 2) ● Wal-Mart’s Bargaining Power over Suppliers (Chapter 3) ● Human Resource Strategy and Productivity at Wal-Mart (Chapter 4) ● How Wal-Mart Became a Cost Leader (Chapter 5) ● Wal-Mart’s Global Expansion (Chapter 6) ● WalMart Internally Ventures a New Kind of Retail Store (Chapter 8) ● Sam Walton’s Approach to Implementing Wal-Mart’s Strategy (Chapter 9) Strategy in Action Features A Strategic Shift at Microsoft (Chapter 1) ● The Agency Problem at Tyco (Chapter 2) ● Circumventing Entry Barriers into the Soft Drink Industry (Chapter 3) ● Learning Effects in Cardiac Surgery (Chapter 4) ● How to Make Money in the Vacuum Tube Business (Chapter 5) ● The Evolution of Strategy at Procter & Gamble (Chapter 6) ● Diversification at 3M: Leveraging Technology (Chapter 7) ● News Corp’s Successful Acquisition Strategy (Chapter 8) ● How to Flatten and Decentralize Structure (Chapter 9) Practicing Strategic Management Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating...
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