WHOLE FOOD MARKET

Competitive Forces and SWOT Analysis on Whole Foods Market

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Competitive Forces and SWOT Analysis on Whole Foods Market

Introduction

The Whole Food Market has enjoyed a formidable position in the edible food sector. The Whole Foods Market has practiced its core values of providing standardized food to their customers not only locally but also on the global scale. This philosophy is particularly evident in the mission of the company, Standardized food for all. In this paper, market's marketing strategies are discussed focusing on the marketing strategy and persisting trends in the market, which has seen a tremendous growth in contemporary times due to the presence of potential competitors, striving to make their mark in the ever-growing industry. A rate of double-digit growth simply means that there are not enough edible farms and organically raised animals in the United States to meet demand (Abell, 2008). The result is a tremendous pressure to increase supply, which in many cases is leading to questionable practices.

Despite the confusion of the consumer and the economic downturn, health continues to influence food purchases by consumers in the U.S. However, taste is king for consumers regardless of the benefits of a health product. Food manufacturers cannot compromise on taste when developing healthier versions of existing products or when they introduce new. This pressure has forced the whole food companies, such as Vestey Foods to reconsider their options and get back to focus on the quality of the product. Organic foods with high fiber rate are becoming more popular these days. More importantly, Whole Food Market should be aware of the false marketing campaigns, which are now becoming a usual trend for competitors to make money. Fashion for the “naturalness” has formed a global market of biological products as early as 1990, and today edible label on a product familiar to Americans (Ansoff, 2005). As for Britain, experts differ in their assessment of prospects of development of the edible food market.

Porter's Five Forces

Suppliers of raw materials (laboratory specializing in edible food) have a reduced because of industry concentration and the effect of group size organic foods. They realize, indeed, many commands and eligible for preferential tariffs or put pressure on suppliers in terms of quality, deadlines, innovation. In these crunching times, other potential players have tended to “sell out” products (Borch, 2006). This non-compliance of the tariff policy of the company can result in a drastic selection among its distributor firms, keeping only the most serious of them.

Bargaining power of customers

The main customers are distributor groups of whole food market (edible stores and healthy food, department stores, chain stores, and hypermarkets), and end consumers through distribution systems, the clean and internet shops. It may be noted that retailers such as department stores or large chain of perfume stores have bargaining power increasingly significant as they represent a showcase for the brands (advertising at point of sale, events). They link more and more brands. Thus, distributors can take advantage of their power to obtain more favorable ...