Whole Foods

[Name of the institute]Whole Foods

Introduction

Whole Foods Market is the largest U.S. supermarket chain of natural and organic foods. With the help of a number of wholly owned subsidiaries Whole Food conducts its operations. The company has 159 stores in the United States, 7 stores in the UK and 2 in Canada. It is headquartered in Austin, Texas and employs 64,200 people. The company recorded revenues of $10,107.8 million during the financial year ended September 2011 (FY2011); an increase of 12.2% over FY2010.The operating profit of the company was $547.6 million in FY2011, an increase of 25% over FY2010 (Whole Foods, 2011). With this increasing profit the organization has strong opportunities to expand its business but at the same time there are certain factors that can limit such opportunities for the brand. So, it is essential to perform the SWOT analysis so that it clears the picture to form a strategy. The aim and objective of this paper is also to discuss SWOT analysis and competitive analysis.

Discussion

The SWOT analysis is an important tool of strategic management and also the basis of many marketing strategies. The following part of the paper presents SWOT analysis of Whole food:

SWOT Analysis

Strengths

Weakness

Strong brand image

Sound liquidity position

Broad product offering

Focused growth strategy

Strong focus on the right sizing of the stores

Product recalls affect brand image

Weak international operations

Increasing rental expenses

Opportunities

Threats

Specialist businesses

Increasing demand for organic products

Increasing popularity of private labels will

improve margins

Trends support increased demand for food products

Intense and cut throat competition in the market

Threat of online shopping

Intense competition may have an adverse

effect on profitability

Stringent regulations impose additional liability

Discussion about SWOT Analysis

The above analysis of the SWOT reveals a number of positive points that can hel0p Whole Foods in expanding its business at the same time there are certain weak points within the organization as well as threat from the external environment that can come in the way of Whole Food.

The broad range of the products that are offered by Whole Food is a strong pint of the organization. The products that are offered by the organization includes seafood, grocery items, products of poultry and meat, bakery items, catering services, prepared food, specialty food such as beer, wine, cheese, tea and coffee, various nutritional supplements, vitamins, products of body or personal care, various educational product such as books and materials, floral items, household products and pet products. Such a vast range of products offer a number of choices to the customers (Horovitz, 2010). But, what give edge and superiority to Whole foods from the competitors is their organic food offerings and its service of catering food in which the customers have the option to purchase made to order food. Customers prefer to buy fresh food as compared from Whole Food as compared to other brands that offer packaged food. Moreover, the established brand name and brand image can also be considered as one of the most important strength of the organization. As a result of the continuous provision of the organic food Whole Food has established the reputation among ...