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Whole Foods Pest

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Submitted By mziemann
Words 272
Pages 2
PEST
Political
Economic
Social
Technological

Porter’s 5 Forces:
Threat of new entrants:
- High. Organic chains will see impacts if regular grocers pick up on the organic food segment. Mass market offerings with wider market reach (Kroger, Walmart) will drive those consumers closer to home and Whole Foods will see decline
Rivalry amongst competition:
- Hi: no sub for organic
Threat of Substitutes:
- Low. Until supermarkets start carrying full lines of organic products. No substitute for organic—just the brand name and the price. Most organic chains are small scale (20k sq ft or less).
-
Barg power of Suppliers:
- High. Most organic offerings come from a few major organic farms in California. Most independent small-scale farmers don’t have the bargaining power to affect their supply pricing and the big chains, being so few of them but providing so much, have more power.
Barg power of buyers:
- Low to moderate. They do have the option of walking and going to supermarkets

Strengths: - The quality of food - The ‘experience’ of the customer - Branding and image - The location of great store for market targeting - Loyal customer base - Corporate culture and store
Weaknesses:
- High in prices (Whole paycheck) - Restricted or narrow target market - Lack of international operations - Company relies on word-of mouth advertising
Opportunities:
- The expansion of food selection - The expansion of private label brand (perhaps links with huge chain for generic distribution) - Enlarge its marketing investment about the advantages of health conscious.
Threats:
- The economy downturn would decrease the disposable income and the needs of luxury goods would be reduced. - The market competition and also the intrusions - Slack of rules and regulations on organic

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