CaseNotes 02 WholeFoods
Teaching Note: Whole Foods Market: 2010 How to Grow in an Increasingly Competitive Market?
Synopsis of Case
This case outlines Whole Foods’ competitive approach to dominating natural and organic food sales. Focal points in the case are the emphasis on quality and innovation, specified target groups, the Whole Foods shopping experience, and differentiation other than price. Listed on the S & P 500 and Fortune 500 companies, Whole Foods successes are due in part to its mission to provide high quality food, ethical business practices, motivational, and respectful work environment. Locating stores where 40% of residents have a college degree and in highly populated metropolitan areas and requiring foods to be fresh, safe, organic, and reflective of a healthy lifestyle has played a role in a well established Whole Foods brand image. Increased competitive aspects, however, have triggered Whole Foods to examine the need for new direction and ways to stimulate and sustain growth in the industry.
Teaching Objectives
The main teaching objectives of this case are:
1. To discuss the steps necessary in planning strategy
2. To utilize the competitive forces model to identify opportunities and threats.
3. To look at sources and durability of competitive advantage.
4. To discuss how functional level strategy can be used for competitive advantage.
5. To discuss the role of competitive positioning in choosing a business model strategy.
6. To determine the basis for generic level strategies.
7. To recognize and discuss factors contributing to market growth and their impact on strategy.
The case works best when positioned towards the beginning of a strategic management course. It is very useful for illustrating the material related to the impacts of competition on strategic decision making. The case can also be used to discuss factors that impact the choice of business models. The case works particularly well when teaching the strategic actions necessary for increased growth.
Synopsis of Case
This case outlines Whole Foods’ competitive approach to dominating natural and organic food sales. Focal points in the case are the emphasis on quality and innovation, specified target groups, the Whole Foods shopping experience, and differentiation other than price. Listed on the S & P 500 and Fortune 500 companies, Whole Foods successes are due in part to its mission to provide high quality food, ethical business practices, motivational, and respectful work environment. Locating stores where 40% of residents have a college degree and in highly populated metropolitan areas and requiring foods to be fresh, safe, organic, and reflective of a healthy lifestyle has played a role in a well established Whole Foods brand image. Increased competitive aspects, however, have triggered Whole Foods to examine the need for new direction and ways to stimulate and sustain growth in the industry.
Teaching Objectives
The main teaching objectives of this case are:
1. To discuss the steps necessary in planning strategy
2. To utilize the competitive forces model to identify opportunities and threats.
3. To look at sources and durability of competitive advantage.
4. To discuss how functional level strategy can be used for competitive advantage.
5. To discuss the role of competitive positioning in choosing a business model strategy.
6. To determine the basis for generic level strategies.
7. To recognize and discuss factors contributing to market growth and their impact on strategy.
The case works best when positioned towards the beginning of a strategic management course. It is very useful for illustrating the material related to the impacts of competition on strategic decision making. The case can also be used to discuss factors that impact the choice of business models. The case works particularly well when teaching the strategic actions necessary for increased growth.