Whole Food Markets Case
Case Analysis – Whole Foods Market
Comfy Shoes Don Meador, Mike Britton, Paige Phillips, Andrew Howery
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Introduction: By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and organic foods supermarkets.” Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. Whole Food’s stated mission statement was to “promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available.” Situational Analysis
a. Firm Analysis (Internal Strengths and Weaknesses) (Based on Appendix A). i. Current strategy and strategic position in industry: Whole Food’s strategy since 2002 has been to open its own large stores, 50,000 square feet and larger, rather than acquiring small chain stores ranging from 5,000- 20,000 square feet. The driving concept behind their merchandising strategy was to create and “inviting and interactive store atmosphere that turned shopping for food into a fun, pleasurable experience.” Whole Food’s wanted customers to think of the store as a “third place” outside of home and work, where they could relax as well as interact with others in a colorful environment.
Financials Analysis: After reading the case and reporting the financial numbers the profit margins from year 2005 have been decreasing each year. The costs of goods sold are on the rise over the past three years and debt over the past three years has risen dramatically to all time highs. Compared to the competitors Whole Foods Market has extremely low revenues and also low EPS. (www.hoovers.com) Assessment of Marketing: In 2005 sales were 1.3 million and rose to 1.7 million in 2007 showing for a increase in sales over the three year time period. As stated in the financial analysis the profit margins have been decreasing each year. According to yahoo
Comfy Shoes Don Meador, Mike Britton, Paige Phillips, Andrew Howery
I.
II.
Introduction: By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and organic foods supermarkets.” Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. Whole Food’s stated mission statement was to “promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available.” Situational Analysis
a. Firm Analysis (Internal Strengths and Weaknesses) (Based on Appendix A). i. Current strategy and strategic position in industry: Whole Food’s strategy since 2002 has been to open its own large stores, 50,000 square feet and larger, rather than acquiring small chain stores ranging from 5,000- 20,000 square feet. The driving concept behind their merchandising strategy was to create and “inviting and interactive store atmosphere that turned shopping for food into a fun, pleasurable experience.” Whole Food’s wanted customers to think of the store as a “third place” outside of home and work, where they could relax as well as interact with others in a colorful environment.
Financials Analysis: After reading the case and reporting the financial numbers the profit margins from year 2005 have been decreasing each year. The costs of goods sold are on the rise over the past three years and debt over the past three years has risen dramatically to all time highs. Compared to the competitors Whole Foods Market has extremely low revenues and also low EPS. (www.hoovers.com) Assessment of Marketing: In 2005 sales were 1.3 million and rose to 1.7 million in 2007 showing for a increase in sales over the three year time period. As stated in the financial analysis the profit margins have been decreasing each year. According to yahoo