Whole Foods Analysis
http://www.oppapers.com/essays/Whole-Foods-Case/128446 The five core values of the company expresses what they feel is special about their company. The values are; selling the highest quality natural and organic products available, satisfying and delighting their customers, team member happiness and excellence, creating wealth through profits and growth, and caring about their communities and their environment. The five forces, suppliers, potential new entrants, buyers, rivals, and substitutes all affected the company. Suppliers of organic food seem to be very limited. In 2004, less than 1 percent of U.S. farmland was certified organic, but is expected to increase in the next couple of years. Whole Foods was having a hard time finding organic beef and chicken suppliers big enough to supply all of their stores. Another force, potential new entrants, was affecting the company. Most supermarkets were starting to stock a growing number of natural and organic food items. Customers were increasingly buying organic foods and beverages for the freshness, the avoidance of pesticides, and health and nutrition. Customers believe that natural and organic foods were better for their health. The only substitutes for organic foods were the processed foods normally purchased in the supermarkets, but customers were trying to get away from them. Whole Foods rivals included, local, regional, and national supermarkets, along with specialty grocery stores and health and natural food stores. The company's two biggest competitors in the organic food segment were Wild Oats Markets and Fresh Market. Wild Oats was probably the biggest competition, because they lowered their prices to increase their store traffic and raise the average purchase. One of the biggest driving force was the growing preference for the differentiated product instead of the commodity product. Consumers were increasingly demanding to buy natural and organic foods rather than processed foods. These foods were...
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