Whole Foods Strategy
The company I will be presenting is Whole Foods, case number seven. Whole Foods is a supermarket chain based in Austin, Texas which emphasizes natural and organic products. As of September 2009[update], the company operates 302 stores: 291 stores in 38 U.S. states and the District of Columbia; six stores in Canada; and five stores in the United Kingdom.
External assessment: There are over one hundred thousand grocery stores in the United States, with a wide variety of types. Stores range from very small neighborhood stores, to huge two hundred thousand square foot stores. Currently, the only major competitor to Whole Foods is Trader Joe 's. As of 2008, they had roughly 300 stores in twenty five states are still growing. Most of their stores are located in California and the upper east coast, and some single stores spread out across the United States. Trader Joes usually has lower prices than Whole Foods, but their stores are generally smaller in size and in selection. Another supermarket that is new to the industry, but growing at a rapid pace is a Wegmans. With over 70 stores in the New York area, this store had 4.8 billion dollars in sales in 2008. Wegmans is consistently rated near the top of Fortunes annual list of the 100 best companies to work for.
With the organic foods market growing at such a fast pace, new stores, small and large are always popping up. A couple examples include the Fresh Market chain which has 86 stores in 17 states, and the Central Markets which have 8 stores in Texas. In addition to the unique, organic centered grocery stores, companies such as Walmart, with over 100 billion dollars in sales, compete for the same customers that Whole Foods does. Kroger and Safeway round out the list of the highest grossing grocery stores in the country. Due to the economic downturn, Whole Foods has tried to lower some of its pricing to compete with all of the other growing stores in the market.
SWOT:
Strengths:
Despite the
External assessment: There are over one hundred thousand grocery stores in the United States, with a wide variety of types. Stores range from very small neighborhood stores, to huge two hundred thousand square foot stores. Currently, the only major competitor to Whole Foods is Trader Joe 's. As of 2008, they had roughly 300 stores in twenty five states are still growing. Most of their stores are located in California and the upper east coast, and some single stores spread out across the United States. Trader Joes usually has lower prices than Whole Foods, but their stores are generally smaller in size and in selection. Another supermarket that is new to the industry, but growing at a rapid pace is a Wegmans. With over 70 stores in the New York area, this store had 4.8 billion dollars in sales in 2008. Wegmans is consistently rated near the top of Fortunes annual list of the 100 best companies to work for.
With the organic foods market growing at such a fast pace, new stores, small and large are always popping up. A couple examples include the Fresh Market chain which has 86 stores in 17 states, and the Central Markets which have 8 stores in Texas. In addition to the unique, organic centered grocery stores, companies such as Walmart, with over 100 billion dollars in sales, compete for the same customers that Whole Foods does. Kroger and Safeway round out the list of the highest grossing grocery stores in the country. Due to the economic downturn, Whole Foods has tried to lower some of its pricing to compete with all of the other growing stores in the market.
SWOT:
Strengths:
Despite the