Whole Foods Market in 2010: Vision, Core Values, and Strategy
Case 1: Whole Foods Market in 2010: Vision, Core Values, and Strategy
1. What are the chief elements of the strategy that Whole Foods Market is pursuing?
Whole Foods uses the competitive advantage of having 100% organic products and the highest quality of natural products. Whole Foods uses growth strategy of expanding a combination of opening its own new stores and also acquiring small, owner-managed chains located in desirable markets. Another use of strategy is their location of stores. The company had a set number of stores each year. Their product line strategy guaranteed 100% satisfaction on all items purchased and too live up to their core values. For pricing, Whole Foods products and offerings were “value-priced”. The prices are normally higher than conventional supermarkets.
2. Is Whole Foods’ strategy well matched to market conditions in the food retailing industry (one of the criteria for a winning strategy discussed in Chapter 1)?
Whole Foods does not pass the fit test in the food retailing industry because other supermarkets dominate the industry and have the potential to have more success in a down economy. Whole Foods does have a sustainable competitive advantage in the industry that is becoming a preferred way of life. This company has the option of producing a superior performance, but it may not be for more than a brief period. As far as the performance test, Whole Foods does have financial strength and maintains competitive strength. Their strategy does produce good company performance.
3. Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like/dislike about the company’s mission/vision ―Whole
Foods, Whole People, Whole Planet‖ that is set forth in case Exhibit 1? Do the mission/vision and the core values underlying it (case Exhibit 3) really matter at this company or are they just nice words and cosmetic window dressing? Explain.
John Mackey has a great strategic vision for Whole
1. What are the chief elements of the strategy that Whole Foods Market is pursuing?
Whole Foods uses the competitive advantage of having 100% organic products and the highest quality of natural products. Whole Foods uses growth strategy of expanding a combination of opening its own new stores and also acquiring small, owner-managed chains located in desirable markets. Another use of strategy is their location of stores. The company had a set number of stores each year. Their product line strategy guaranteed 100% satisfaction on all items purchased and too live up to their core values. For pricing, Whole Foods products and offerings were “value-priced”. The prices are normally higher than conventional supermarkets.
2. Is Whole Foods’ strategy well matched to market conditions in the food retailing industry (one of the criteria for a winning strategy discussed in Chapter 1)?
Whole Foods does not pass the fit test in the food retailing industry because other supermarkets dominate the industry and have the potential to have more success in a down economy. Whole Foods does have a sustainable competitive advantage in the industry that is becoming a preferred way of life. This company has the option of producing a superior performance, but it may not be for more than a brief period. As far as the performance test, Whole Foods does have financial strength and maintains competitive strength. Their strategy does produce good company performance.
3. Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like/dislike about the company’s mission/vision ―Whole
Foods, Whole People, Whole Planet‖ that is set forth in case Exhibit 1? Do the mission/vision and the core values underlying it (case Exhibit 3) really matter at this company or are they just nice words and cosmetic window dressing? Explain.
John Mackey has a great strategic vision for Whole