BUS599 MOD01 Case: Whole Food Market Strategic Analysis

Whole Food Market Strategic Analysis
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Whole Food Market Strategic Analysis
A company with a vision that is grounded in sustainability always wins outlasts its competitors. Whole Foods Market (WFM) is an example of a company that always evolves and adapts to the new market changes. The company has thus been able to withstand even the hardest economic times while re-inventing itself. In the business environment, having a solid foundation that is reinforced by a clear vision, a purposeful mission, and unique values propagates a company to greater profits. WFM is made unique by its values as well as its quest to be the leading organic food company in not just the US but also in the other places that the business has branched to. The management of the enterprise understands the work and commitment that is required to propel the company to further greatness and success and has always worked to ensure that WFM is among the best if not the best in the food industry. The food industry is indeed complex, and only the companies that restructure and realign themselves can succeed. In this article, WFM’s strategic position and goals, competition and competitive environment as well as the company’s strengths, weaknesses, opportunities, and threats will be analyzed.
WFM’s motto is “Whole Foods, Whole People, Whole Planet.” The management of the company has managed to build the company around the above motto and clients have responded in kind. According to the company’s website, their “vision reaches far beyond being a food retailer. Our success in fulfilling our vision is measured by customer satisfaction, team member happiness and excellence, return on capital investment, improvement in the state of the environment and local and larger community support.” Earning the client’s beliefs as well as trust is indeed something that companies always look forward to and through its vision and motto, WFM has managed to not only attract new customers but also to reinforce the belief that the old ones had. The company sells itself as a caring partner in the food industry, and clients have identified with their culture.
WFM’s mission statement is not only something that helps to market the company but also gives them an edge over their competitors. The mission statement reads: “Whole Food Market is a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company. Quality is a state of mind at Whole Foods Market.” Every company strives to be a leader in whichever industry they are in, and WFM is not any different. However, how companies act or work sets them apart and determines who will be successful and who will always take scraps after the main dish has been served. By emphasizing on quality as well as a culture of excellence, WFM has managed to earn the trust and mark of an excellent partner in the food industry and thus set itself as an example from whom others copy.
The company’s values also set the bar higher for its competitors and build on WFM’s motto, vision, and mission. The company not only aims at delivering quality products to its customers but also satisfying them as well as promoting their health through food education. These values help to keep the company profitable but also a worthy partner to people’s lives. WFM is also involved in community support and development and prides itself as an environmental stewardess. These unique qualities and ideals have propelled the company to heights that were not anticipated. Every employer knows that everything good begins with their employees and team members and WFM proudly acknowledges this fact.
Goals dictate action, and at WFM, the company’s strategic goals have always been the driving force. Strategic goals target the entire organization and at WFM, they have been the foundation upon which the company has built itself. According to Thompson (2016), one of the strategic goals of the company is based on its quest to penetrate newer markets and to conquer the food industry. With its motto, it has become easier for WFM to expand to newer markets because of the reassuring nature of the slogan (Johnston, 2008). People relate to the slogan, and this has made it relatively easy for the company to spread to other places.
The second and third strategic goals are based on market development and product development. According to the company’s website, the company has been restructuring and changing its strategy and approach to the market as well as to its products. The company’s intensive growth strategy, as well as its move to distribute unique and high-quality products, has earned not only the company newer customers but also a place among the best in the food industry.
Competitors to Whole Foods and Market Company
Since its inception 1980, the company has faced fierce competition from similar organic foods retailers. However, the Whole Foods Market (WFM) stores have weathered the competition, and they are the largest retailer of natural organic foods in the US. This section describes WFM’s main competitors and their strategic opportunities and threats that validate why they are viable competitors to WFM.
Sprouts Farmers Market
The company has grown rapidly since its inception in 2002, and they have opened over 230 stores in the US alone. It is a great achievement when considering that the natural and organic food store was delving into a retail industry that was dominated by other companies by the tie of its establishment. The company has invested heavily in online presence to diversify their market and create a strong brand. Sprouts Famers Market (SFM) has through digital marketing gained a larger market share and significantly improved their income CITATION Ber14 \l 1033 (Berman, 2014). Their mainstream products are foods and therefore they have invested heavily in creating value for their money for their clientele by offering quality products at relatively competitive prices.
The company has also been creative to initiate additional and attractive services to their consumers which are geared at establishing loyalty and promoting their brand value. SFM has weekly, monthly deals, online coupons, shopping lists, recipes and other myriad special deals that are customer made according to the season and their consumer preferences. Such marketing strategies have been effective in gaining a larger market share and establishing consumer loyalty amidst stiff competition with its competitors. SFM has paired with Amazon in Arizona, a global leader in the online retail industry, to tap into its consumers and enable them to compete favorably against established retailers.
On the other hand, SFM has numerous threats that threaten their strategic vision in natural and organic foods industry. The company faces stiff competition from other retailers of organic foods. They are presently available in 8 states while one of their main competitor WFM is available in 42 states and even overseas in the UK. It will be difficult to penetrate in those markets previously dominated by its competitors. In a nutshell, SFM is a viable competitor to WFM considering the achievements they have attained in their short business operations years. Their growth in market share, asset base, the number of stores and the number of employees are clear indications that they form a formidable organic and natural foods powerhouse that poses stiff competition to other retailers like WFM.
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