STRATEGIC REVIEW WHOLE FOOD'S MARKET

STRATEGIC REVIEW WHOLE FOOD'S MARKET

Introduction

Whole Foods Markets is basically an organic grocery store which is operating in several countries and in its stores is in hundreds. Whole Foods Market is the unique business of organic and natural grocery. It is very attractive for those people who are health conscious. In just small span of time the idea of Whole Foods Markets became so popular in and the business has reached its peak that is why it is predicted that there is probability that the business may see a marginal decline (wholefoodsmarket.com).

Whole Foods Market, Inc. is a US based firm, established in 1980. It is a public limited company listed in NASDAQ. The headquarter of Whole Foods Market; Inc. is located in Austin, Texas. The core business of the firm is to provide the organic and natural products to the customers. Whole Foods Market, Inc. primary focus is on the perishable food products. The firm is also operating in the Canada and UK.

Case Analysis

Strategy

The whole Foods Market practiced different strategies in its business. The main objective of the business is to promote the organic and natural food products rather than artificial food products because the natural and organic products are good for health. So the motive of the promotion of the organic food is for the well-being of the people and the quality of food they eat. The Whole Foods Market use the differentiation strategy. The company also derives many competitive advantages through this strategy because the uniqueness they have is itself a competitive advantage. The associates who are working for Whole Foods are knowledgeable. The variety of product offer by the store is another competitive advantage for the company (Hamstra, 2008).

Unlike Wal-Mart and other grocery stores which offers low price. The whole food Market does not offer low price, it is basically charges higher price from its customers but it provides the quality natural food to its customers, which is good for the health. The target market of the Whole Foods Market is the niche market. The core reason for the high prices is the high cost of goods sold. The cost of growing and marketing natural and organic food products is higher than the cost of the traditionally cultivated food products. It is approximately 25% to 75 % expensive than the traditional food products. The Whole Food Markets employed visible value efforts that positively enhanced the company's price image in the eyes of its target markets.

Michael Porter has researched and found that the strength of the company ultimately lies in either the cost leadership or in the differentiation. Porter's three generic strategies are; the cost leadership, differentiation and the focus Hinkin & Tracey (2010).

Cost Leadership

In cost leadership strategy the firm desire for superior profits through lower cost. If a firm is following the cost leadership strategy then it has to low down the cost of the products it is selling. In cost leadership strategy the company attracts the customers by offering them ...