Analysis of Whole Foods Market: Observations, Opportunities, Recommendations, & Conclusions

Whole Foods Market’s opportunities are constructed around current competition and the global market. The firm’s current competition is the threat of low-cost competition firms such as Walmart and other organic and health food retailers that offer lower prices (Lawrence Gregory). The company can overcome the threat of low-cost competition by adjusting their pricing strategy. If the firm reduced its prices on their high-quality products it would not necessarily reduce the high-quality image of the firm’s products because of Whole Foods strong brand reputation (Pauline Meyer). Their strong brand reputation is the result of the company’s high quality standards. That being said, the Whole Foods Market should take the opportunity to capitalize their Whole Trade Guarantee, (Meyers) which also helps build the company’s image. This approach enables Whole Foods Market to match supply with the quality standards used in its stores (Meyer).

The firm’s biggest opportunity is to expand globally. The firm should build more new stores and expand overseas to address the threat of antitrust law in the U.S. (Meyer). Since there are free trade agreements in locations overseas, it gives the firm the opportunity to expand business globally (Meyer). Whole Foods needs to internationally expand to fuel growth and profitability (Gregory). When Whole Foods makes their steps towards global expansion they need to develop their operations through decentralized stocking. This means when handling inventory each global store needs to decide when and what to purchase from which suppliers, based on store performance and local market conditions. Already established Whole Foods stores use a team-based approach so employees can select their team members (Smithson). When scheduling long-term or short-term management schedules globally, the new firm’s facilities should also use a team-based approach so scheduling will be the most efficient for maximizing productivity in all team and individual operations.

The Whole Food’s Market also has a great opportunity to expand its supply chain but first they need to connect with more organic producers to help with the firm’s growth expansion. Whole Foods Markets main operations are found in the cities in the United States. Although, there are also firms located in Canada and the United Kingdom, the company lacks global expansion, which also makes the company more susceptible to economic changes in America. External economic factors in America include economic stability and higher employment rate (Meyer). Since the company’s supply chain depends highly on producers in developing countries the rising labor costs can create a threat for the firm. The rising labor costs can lead to higher selling prices and higher supply cost so Whole Foods needs to develop a strategy to minimize the potential issue (Meyer).

In conclusion, Whole Foods most important strength is their high quality standards, high quality products, and strong brand reputation, which allows them to have some power in the market place if they choose to utilize it globally. The firm’s most noticeable weakness can be seen as their limited locations on a global scale. This global limitation conflicts with the company’s potential growth because the firm is depending mainly on sales made in American. Whole Foods tries to accommodate their lack of global sales by creating an online application for their current stores to increase business efficiency, as well as make consumers shopping experience more convenient. Whole Foods prices are higher than most competitors, which forms a threat to the firm because of low-cost competition in the market. The firm is currently using a premium price strategy, but as stated previously, the firm has leverage to reduce their prices on its high-quality products without affect the brand image. The firm’s biggest opportunity is to focus on global expansion to reach full potential of growth and profitability. 

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