Whole Food Market Analysis: Whole Foods Market
Whole Foods Market Analysis
Gloria Rios
Management 521
April 17, 20102
Randy Schumacher
Abstract
As a mutual fund manager I will be deciding whether to invest in Whole Foods Market, a Fortune 500 Company. The growth rate from 1991 to 2011 is 26%, with a remarkable consistency from year to year. Their resilience is noted in their decision making processes which resulted in a successful recovery from the recession. The SWOT Analysis shows strengths in their growth strategy and expanding product line. Their flagship acquisition in London of 80,000 square feet in 2007 appears to be a major step in expanding outside the US. Sales have doubled since then and 66% of the British adults now consume organic food and drinks. Their weakness …show more content…
Future growth could be impacted. The increasing demand for organic foods and the new emerging life styles of the American public appear as great opportunities for Whole Foods Market. “According to industry estimates, the sales of organic food increased three fold since 2000 to exceed $28.6 billion in 2010” (Datamonitor, 2012 p. 7) With this increase in sales, the company is still the only chain catering and available to this market. They are continually expanding their product base to include such foods for customers with special dietary needs. The trend of the American family is moving towards eating at home and eating healthy. Competition in the food retailing market is intense. Currently, Whole Foods does not experience significant competition in the organic food, natural products, and vitamin supplement area. But, as the demand and desire grow, so will the competition. The threat of the retail, supermarket chain of succumbing to its competitors, or lagging behind in being innovative is always present. Regulation will increase as the market share increases. The FDA, FTC, CPSC, USDA and the EPA will become more stringent, which will increase the cost of …show more content…
PR Newswire US reports that “Whole Foods Market Named to “World’s Most Ethical Companies’ List. In response to this honor John Mackey speaks of the core values and” unique culture, growth and success.” “That success comes from making sure all our stakeholders-Team Members, customers, suppliers, shareholders, our communities and the environment-are part of our vision” (p. 2).
Fortune Magazine for the last 15 years has ranked Whole Foods as one of the “100 Best Companies to Work For” in America. (PR Newswire US, 2012, p. 3). Taking into consideration the employee discontent during the economic turn down, I believe the ranking outweighs measures taken to reduce costs through front line employees, as a temporary phenomenon.
Whole Foods Market has reduced its supply of some products such as fish in order to ensure the purity of product. They have investigated suppliers who claim to be providing one product when, in fact, they are selling an inferior replica. Their dedication to the customer and the product is a significant stakeholder
Gloria Rios
Management 521
April 17, 20102
Randy Schumacher
Abstract
As a mutual fund manager I will be deciding whether to invest in Whole Foods Market, a Fortune 500 Company. The growth rate from 1991 to 2011 is 26%, with a remarkable consistency from year to year. Their resilience is noted in their decision making processes which resulted in a successful recovery from the recession. The SWOT Analysis shows strengths in their growth strategy and expanding product line. Their flagship acquisition in London of 80,000 square feet in 2007 appears to be a major step in expanding outside the US. Sales have doubled since then and 66% of the British adults now consume organic food and drinks. Their weakness …show more content…
Future growth could be impacted. The increasing demand for organic foods and the new emerging life styles of the American public appear as great opportunities for Whole Foods Market. “According to industry estimates, the sales of organic food increased three fold since 2000 to exceed $28.6 billion in 2010” (Datamonitor, 2012 p. 7) With this increase in sales, the company is still the only chain catering and available to this market. They are continually expanding their product base to include such foods for customers with special dietary needs. The trend of the American family is moving towards eating at home and eating healthy. Competition in the food retailing market is intense. Currently, Whole Foods does not experience significant competition in the organic food, natural products, and vitamin supplement area. But, as the demand and desire grow, so will the competition. The threat of the retail, supermarket chain of succumbing to its competitors, or lagging behind in being innovative is always present. Regulation will increase as the market share increases. The FDA, FTC, CPSC, USDA and the EPA will become more stringent, which will increase the cost of …show more content…
PR Newswire US reports that “Whole Foods Market Named to “World’s Most Ethical Companies’ List. In response to this honor John Mackey speaks of the core values and” unique culture, growth and success.” “That success comes from making sure all our stakeholders-Team Members, customers, suppliers, shareholders, our communities and the environment-are part of our vision” (p. 2).
Fortune Magazine for the last 15 years has ranked Whole Foods as one of the “100 Best Companies to Work For” in America. (PR Newswire US, 2012, p. 3). Taking into consideration the employee discontent during the economic turn down, I believe the ranking outweighs measures taken to reduce costs through front line employees, as a temporary phenomenon.
Whole Foods Market has reduced its supply of some products such as fish in order to ensure the purity of product. They have investigated suppliers who claim to be providing one product when, in fact, they are selling an inferior replica. Their dedication to the customer and the product is a significant stakeholder