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Competitive Forces and SWOT Analysis 1

Study of Competitive Forces

And

SWOT Analysis

Mehmet F. Celik

Dr. Kim Anthony

Strategic Management, Bus 599

11.07.2010
Competitive Forces and SWOT Analysis 2

1. Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods

Market.

There are several trends in the retailing of organic foods market that impacted Whole Foods. They are
listed as follows:
• Congress passed the Organic foods production act in 1990.

• According to a leading trade publication for the industry, sales of natural products across all

retail and direct-to-consumer channels grew to approximately $68 billion in 2008, a 10%

increase over the prior year.

• 2003 all organic processors, exporters, importers, shippers and merchants had to document and

verify for that they were certified to grow, process or handle organic products carrying USDA’s

Organic Seal.

• 31 % of Organic food sales were sold by mainstream supermarkets

• 24% through leading natural Food Stores (Whole Foods, Wild Oats and Trader Joe’s)

• 22% through independent small store chains

• USDA established official standards for organically grown products in the U.S. overhauling and

regulating 43 state and other federal agencies for the labeling of organically grown products.

o Organic products that were processed had to be processed with 95% organic products.

o Products made with organic ingredients had to have at least 70% organic ingredients TO

BE WORDED ORGANIC, but could not display USDA certification.

o Other products with less than 70% ingredients COULD NOT WORD organic on

package.

2000 more organic foods were sold in conventional supermarkets than in over 14,500 natural food

stores. By 2002, most supermarkets expanded their selections of National and organic food products which

ranged from:

- Wine - Cereal - Pasta - Cheese

- Yogurts - vinegars -Potato chips - Beef


Competitive Forces and SWOT Analysis 3

- Chicken - Canned fruit - Canned Vegetables

Among the most popular items were fresh produce which included:

- Lettuces - Tomatoes - Carrots -Broccoli

- Cauliflower - Apples - Celery - Cucumbers

Meat, Dairy and Bread were the fastest growing organic categories sold. Whole foods did their own

survey of consumer preferences and 75% of the participants responded that the Number one barrier to their

purchase of organic products was the high prices charged by most retailers. 46.1% said that they didn’t

consume it because it wasn’t available to them where they lived and another 36.7% said that they were loyal to

non organic foods. Among the participants that purchased organic foods on a regular basis 75% said that they

purchase mostly Fruits and vegetables; 32% purchased Dairy beverages; 22.2% purchased Bead & Baked

goods; 24% purchased dairy items; 22.2% purchased packaged goods (Soup or Pasta); 22.2% purchased meat;

22.1% Snack Foods; 16.6% purchased Frozen Foods 12.2 purchased Prepared or Ready to Eat Meals and 3.2

% purchased Baby Food.

Currently the market for organic products in this country is 20% and growing. Depite the fierce

competition the price or organic products has remained high due to rising consumer demand. Once a niche

market, the several factors in the market have forced Organic products to become one of the fastest growing

segments of U.S. Foods sales. The factors driving the increase in demand for organic products are listed below:

• Healthy eating patterns

• Consumer concerns over purity and having pesticides in their foods

• Wellness and Health consciousness

• Soil and Water enthusiast growing beliefs that organic farming has positive environmental effects.

Although many large supermarkets chains stocked a wide selection of organic and natural food items,

only two chains in the U.S., Harris Teeter in the Southeast and Whole Foods Market had launched their own

private label brands

2. Evaluate the competitive environment of the firm: Apply Porter’s model and analyze each factor

relative to the company.


Competitive Forces and SWOT Analysis 4

Whole foods which ranked 24th in the market , had total revenues in 2006 were 5.6% only a fraction of

some of its largest competitors which included Wal-Mart, Kroger, Costco which sales were $209.9, 66.1 and

59.0 respectfully and held 9.4%, 7.8 and 4.3% of the total retail grocery sales in the market. But if ranked in

the Natural and Organic Foods market segment, Whole Foods is seen as the category leader for organic and

natural foods because they offered the largest selection of products in this category, as most of its competitors

efforts were either futile or helpful to Whole Foods, because they exposed customers to organic and natural

foods. Whole Foods mission and objective was to improve the health of the planet and help create new

customers for Whole Foods by creating a gateway experience and WF knew that as they grew at a modest pace

that those same customers would likely become their customers when ever they moved in close proximity to

those customers. Whole foods core growth strategy is to expand via combination of opening its own new stores

and acquiring small, owner managed chains that had capable personnel and were located in desirable markets.

Which had proven to be a difficult objective at first, since many of the owner operated retailers of natural and

organic foods were one store operations and larger store in the 5,000 to 20,000 square foot range was

impossible to find.

Whole Foods changed their strategy to a more measurable goal of driving growth by opening 10 to 15

larger stores in major metropolitan areas which they planned to implement between 2002 to 2006 were proven

to be much viable strategy as indicated in exhibit 5 which shows that they grew from 135 stores to about 276

stores in 2008 including the addition of Wild Oaks one their biggest competitors for $565 million and $135

million in debt and an additional $166 million in cash after selling 35 of the newly acquired stores. Whole

Foods next biggest competitors in the natural and organic foods segment of food retailing were fresh Market,

Trader Joe’s, Sunflower Farmer’s Markets, Fresh & Easy Neighborhood markets and Independent natural

Health Food Grocers. Provided below is a chart outlining strengths of above competitors:

Fresh foods market may be a formidable opponent in the market earning over $350 million in 2007, but

they are still young and assuming that they lack the financial resources and retail merchandising skill to be a

significant threat to whole Foods right now but are currently seeking funding to go public soon . Fresh Markets

size and geographical locations are similar to Whole Foods customer Base near educated and affluent residents.

Their product line and offering are similar with Fresh Market having only a modestly innovative or creative
Competitive Forces and SWOT Analysis 5

layout differentiate themselves natural food stores and traditional supermarkets with superlative service;

attractive fresh produce display and “upscale boutique” items such as pick & pack spices, gourmet coffees,

appealing meats and seafood selections, chocolates, NY cheese cake , H&H Bagels and other special

condiments, wine beer and gift items—but had very high labor cost, sometimes more than average supermarket

because of the benefits package they received was fairly decent and part time employees received benefits

including medical, dental and life insurance directly after hire. Fresh market’s customer service techniques

need improvement in customer engagement, but could be improved through events for customers such as

cooking classes and sponsored fund raising events which they have annually for the children’s Diabetes

foundation; Fresh Foods stores are approximately 18,000 to 22,000 square feet and fit the profile Whole Foods

mentioned earlier for acquisition, partnership or out right purchase. Whole Foods needs to communicate with

them to see if they will be willing to collaborate and work in alliance for healthy and environmental causes.

Exhibit A – competitive comparison chart

Company Sales stores Average Geographic Number of product/service Competitive


2008 store size State/Intnl Employees ranges Differentiation
(billions) (000/sqft 000’s Strategy
*VAS
Whole Foods $6.5 284 45 – 60 36/2 54 Over 30,000 items Public company since
Items sold inkling 500 daily 1992
Fresh Produce seasonal, Growth/ Market
exotic Meat and poultry 150 leadership strategy
Fresh Seafood items. Endless Team leadership
baked goods Restaurants
Prepared foods; 40, .Frozen Cafes
foods, juices; Dried & fresh Ownership of
fruits and spices; 1,200 Beers Distribution centers
and wine brands; Coffees and Ownership of three
tea; body care and nutrition, seafood processing
pet foods. centers
Grocery and household Supply chain
products organic sheets and management program
linen; A floral depart. Import supporting
Private labels/store brand underdeveloped areas
items; Educational products; and countries
seminars on cooking and Community Health
nutrition. Well being

Fresh .350 77 18 – 22 17 7 Meats, seafood, sandwiches, Open air old World


300 fresh produce;40 coffees; European market
Markets a selection of dairy ; bulk design, old fashion
products; cheeses; deli items; sentiment
wine & beer; floral and gift
items and bare line up of
grocery items
Independent 18/.005 14,00 1.1 -6 n/a Narro to mod irately broad Small open format
Natural and
Health Grocers 0
Fresh & Easy (.020) 200 10 Stock about 3,500 items
Neighborhood
markets t
Sunflower n/a 14 25-27 Stock about 5,000 items Warehouse style
palletized bulk
Farmer’s shopping experience
market
Trader n/a 315 Na 22 n/a Over 2,000 unique items in Treasure hunt
Competitive Forces and SWOT Analysis 6

Joe’s under their product label 10-15 new, seasonal or


one time buy items
Vitamin World .001 7,500 Sells vitamins and
General supplements to Whole Food
Nutrition
Value Added
strengths

The entering of Tesco subsidiary Fresh and Easy Neighborhood in organic grocery and retails market

may over saturate market with just like me store presence hampering whole Foods profitability and slow down

whole Foods growth in the Organic and Natural Foods market. They have a large distribution center and could

serve some of whole Foods in their geographic region for future expansion needs. Whole Foods may need to

create alliances with Tesco health grocers to find out what their goals are in the market if they are similar and

products are healthy and pure products they may be open to a merger to gain market share in US market. A

large company like Tesco could aid Whole Foods Internationally in achieving its humanitarian outreach. If no

alliances or communications with company to reduce can be formed with this company they could be a real

headache in the market if they evolve and find a better way to delight customers with their differentiated

offering melding quality, low price and convenience.

Sunflower with their warehouse style bulking and discounting of large lots indicates that want to

penetrate to the heart of the organic and naturals market cutting off any major contenders such as whole Foods

and deflating the hype of getting healthy foods without glitz and glamour through their state in mission saying

they keep their overhead low....just regular people looking for a great deal Sun Flower’s mission statement :

We will always offer the best-quality food at the lowest prices in town. “Better-than-supermarket quality at

better-than-supermarket prices” is our motto. ~ We keep our overhead low. No fancy light fixtures or high rent.

No corporate headquarters…just regular people, like you, looking for the best deals we can find. ~ We buy big.

We source directly, we pay our vendors quickly and we buy almost everything by the pallet or truckload. That

buying power means big savings for you! Their tagline is one of mockery & poking fun from Mark Gilliand,

partner and former founder of Wild Oaks at Whole Foods’...High Prices by giving reason to their low price

versus that of Sunflower in saying : “Serious Food....Silly prices.” Is engaging whole Foods head on with a

limited selection of items from the Organic and natural market including minimally processed items, cereals,

seafood, nutrition bars, trail mixes, health drinks , produce, meats, salads, cheese, bread, coffee, nuts, candy,

nuts, soaps, shampoo, natural remedies and offer double AD days where they could get twice the items on
Competitive Forces and SWOT Analysis 7

Wednesday. Whole Foods needs to intensify their efforts in supply chain management through acquisition and

alliance with major processors of organic foods to tie up distributors and control the supply available to vendors

who are not concerned with customer service and increase marketing of private store brands to increase

customer loyalty in the segment. Communication with individual health and organic grocers might prove

effective to see if alliances can be established to keep this competitor from gaining to much ground in the

organic market.

Whole Foods core values address differentiation as their core or primary competitive strengths

and strategy which accounted for much of their success in the organic and natural foods market. Some of the

major areas where they use differentiation are in their choice of products, location, customer intimacy/ store

experience, and in their employees. Whole Food sells the highest quality Natural and organic products

available. They were able to differentiate on their product line and brand selection because their stores were

different sizes unlike a Wal-Mart or Costco whom stores averaged 132,000 to 141,000 and sell a wider

selection of products, categories outside of the organics and natural segment forming a natural barrier to entry.

Whole foods located many of their stores located in upscale areas near highly affluent or wealthy customers in

urban metropolitan centers. Some stores were frequently found in premier real estate sites or high traffic

shopping locations. Some stores free standing; in shopping strips and others located in mixed use project

locations.

Whole foods developed and used its own unique model to analyze potential markets and to target its

customers whom were mostly affluent and educated people whom were willing to pay a bit more for healthier

food. Whole food used a combination based on education levels, population density and income during a

certain drive times at each store location to project sites before a store was opened after passing certain

financial hurdles. Whole Foods currently owns over 274 stores in 36 states and abroad; and sources most of its

organic and natural foods from individual or subsidized farmers, and seafood fisheries with the exception of

about 24% of its dry grocery and frozen food products fare purchased from United National Foods, the

company’s biggest food supplier; two wholly owned seafood subsidiaries and Nine distribution centers; nine

regional bake houses and five commissary kitchens supplied area stores with prepared foods. A central roasting

facility supplied stores with the company’s Allegro brand of coffee and two produce procurement centers which
Competitive Forces and SWOT Analysis 8

are in charge of procurement and distribution of all the produce Whole Foods sells. In order to ensure the best

quality in their products and future qualities of organic and natural foods whole Foods built unique

relationships and programs supporting farmer’s in disadvantaged or low income or wage areas or countries

committing to import over 50 % of its imported products from developing countries through its whole Trade

program which committed the company to paying small scale producers a price for their products that more

than covered the producer’s cost; so that they could invest in family’s and worker’s cost to educate themselves

and have sufficient pay to help support a better life.

Although many Whole food stores varied in size, their biggest was about 99,800 square feet with their

average store footprint ranging from 45,000 to 60,000 square feet, catered to many different types of clientele.

Their product lines like Costco was limited and included only about 30,000 natural, organic, gourmet food

products and nonfood items:

• Fresh Produce – fruits and vegetables including seasonal, exotic and specialty products like cactus pears,

cipolin onions and Japanese eggplant.

• Meat and poultry – natural and organic meat house-made sausage, turkey and chicken products from

animal is raised on wholesome grains, pasturelands and well water (without the use of hormones or

steroids).

• Fresh Seafood -- a selection of fresh fish; shrimp oyster; clams; mussels; homemade marinades; exotic

items like octopus, sushi and black tip shark. Most of their seafood came from two wholly owned

subsidiaries Pigeon Cove seafood processing facility located on the East coast in Massachusetts and

Select fish processing facility on the West coast which supplied only a portion of their seafood. As a

part of their strategy to provide only the freshest foods managers at individual stores were given

discretionary authority to purchase from local organic farmers and well managed seafood fisheries.

• A large selection of baked goods—cakes, pies, breads and cookies and etc.

• Prepared foods --- soups, canned and packaged

• Fine quality cheeses up to 40 varieties

• Frozen foods, juices, yogurts and dairy products, etc.

• Wide variety of dried, fresh fruits and spices


Competitive Forces and SWOT Analysis 9

• Beers and wines, some with up to 1,200 varieties of domestic and foreign brands

• Coffees and teas in store roasting, grinding stations; premium and exotic

• A body care and nutrition department—organic, natural, homeopathic remedies without any animal

testing

• Natural and organic pet foods

• Grocery and household products

• A floral department with large variety sophisticated in and outdoor plants

• A 365 Everyday value line and 365 organic everyday Value line of private label products that were less

expensive than other store brands.

• Educational products—alternative health care and books related to cookery, healing, diets and lifestyles.

Some stores even feature seminars on cooking and nutrition.

Whole foods who depends largely on word of mouth and testimonial style or referral advertising; spends

less 0.5 of its revenues on Advertising. Corporate budgets are largely decentralized and allocated most of their

marketing budgets toward regional programs and marketing efforts for individual store and national brand

awareness.

Another element and important key to Whole Foods customer Intimacy strategy is its differentiated

store layout and designs and their skills in merchandising, which are quoted by Thompson (2009) as a prime

factor in its success in luring shoppers back time and again. It uses a differentiated style of merchandising that

can be compared to an upscale mix of Starbucks with Harris Teeter, with valet parking. In 2008, Whole Foods

had over 274 store locations in 36 states and are described below:

• Its flagship store in Austin Texas, 78,000sq feet, considered a number one tourist attraction and

destination, features an intimate village style layout; six mini restaurants within the store; a raw food

and juice bar; more than 600 varieties of cheese and 40 varieties of olives; a selection of 1,800 wines;

a candy Island with handmade lollipops and popcorn balls; a hot nut bar with an in-house nut roaster; a

world foods section; a walk-in beer cooler with 800 selections; 14 pastry chefs making a variety of

items; a natural home section with organic cotton apparel and household linens; and extensive meat

department with in-house smoker and 50 oven ready items prepared by in-house chefs; and a theater
Competitive Forces and SWOT Analysis 10

like seafood department with more than 150 fresh seafood items and on the spot shucking cooking,

smoking, slicing and frying to order.

• In their Columbus Circle store in Manhattan had a 248 seat café’ where shoppers could enjoy

restaurant quality prepared foods while relaxing in a comfortable community setting ; a jamba juice

smoothie station that served freshly blended to order fruit smoothies and juices; a full service Sushi Bar

by Genjie Express complete with stools where customers could sit and enjoy fresh cut Sushi wrapped

in organic sea weed; a walk-in greenhouse showcasing fresh cut and exotic flowers; a wine shop with

over 700 varieties of wine from both large and small vineyards and family estates; a chocolate

enrobing station where a customer could get anything coated in chocolate.

• In a two story Pasadena, California Store (one their largest stores west of Rocky Mountains) they

featured a wine and tapas lounge; a seafood and Italian trattoria; 1,200 selections of wine; fresh donuts

made hourly; a 6,000 square foot produce department that featured more than 500 items daily; and free

wireless internet.

• Internationally, in a three store 99,800 square foot store in London had 55 in store chefs; 13 dining

venues including a tapas bar, champagne and oyster bar; a pub, and sushi and dim sum eatery) that

accommodated over 350 diners; a self service bulk foods center with 100 selections; and a 12 meter

display of fresh seafood selections ( many of selections were hook and line caught off the shores of

the United Kingdom).

In creating the environment which many customers of Whole foods is used too, Whole foods wanted to

create a strong corporate culture that contributed toward an environment motivated employees to work in

teams to carry out their mission. So they use a team approach to store operations which in my opinion is the

real the driving mechanism for their total customer experience. Depending on the store size and traffic volume,

Whole Foods employs any where from 85 to 600 members, which are organized into as many as 13 teams,

each with One team leader working with one or two associate team leaders as well as with all departmental

team leaders to operate the store as effectively and profitably as possible . Each Team within a store is

responsible for a different product category or different aspect of store operations such as customer service,

prepared foods, and produce and customer checkout stations. Also another key to Whole Foods use of this
Competitive Forces and SWOT Analysis 11

approach is their level of decentralization where these team leaders made decision on merchandising and

operating decisions but team leaders also screened candidates for jobs on their teams, but two thirds of the team

had to approve a new hire--- and that approval came only after a thirty day trial so every on the team could get

know if each candidate fit with the job and within the team.

Whole Foods empowers these teams to make decisions at the store level pertaining to merchandising,

departmental operations and efforts to please customers. Whole Foods uses this model based on their

commitment and belief that that their long term success depended upon having happy customers. They also

believed that empowering these tem leaders and employees they are further inspired and motivated and help to

harness the collective energy of the team to operate effectively and efficiently ---thus enabling them to manage

their store better than their rivals. In addition , to the empowerment to make decisions, many team members

and employees felt good about their jobs and had a greater sense of purpose and were motivated through their

sense of contributing towards the company’s vision of providing shoppers with better diets , eating habits and

overall well being of society at large.

What also made this type of management approach effective was the compensation of each team leader

and member who were rewarded in a sense of shared fate. Team leaders received salary plus bonus based on

the stores economic value added (EVA) contribution; and were also eligible to receive stock options Leaders

and members alike received member selected benefits packages complete with health plan which the company

paid 100% of the premium and personal wellness accounts which members used to pay for higher deductibles

or continue to roll over for future expenses, paid time off, 20% discounts on all whole foods purchases, eye &

dental care plans, life insurance and disability plans and emergency assistance plans. Team members were

paid similarly to leader bonuses through a gain sharing plan that linked each member of the teams by uniting

the self interest of the team members with those of share holders. The gain sharing plan which rewarded each

member according to store’s operating profit ( Store sales less Cost of goods sold less operating expenses)

some distributions could add as much as 5 to 7 percent of their wages. Members received a grant of stock

options based on their performance, stock purchase plan through payroll and 401K plan.

Furthermore, employees were so happy with the way Whole Foods compensated them that turned away

from all unions, although there were several attempts to unionize members. The company was also was also
Competitive Forces and SWOT Analysis 12

picked for Fortune 100 Best companies to work for List over 11 times. One of 14 companies to make the list

every year since its inception. Fortune in scoring the survey, allowed two thirds of the weight were placed on

400 randomly selected employees of the company and one third of the evaluation based on demographic

makeup, pay, benefits and culture.

3. Discuss which environmental factor poses the most significant threat to Whole Food and what the

company can do to combat it.

In 2008, sales dropped below 10.91 percent with the newly acquired Wild Oaks whose sales only rose

about 0.8 percent versus 8.2 in 2007. Analyst says that this was because of the timing of the acquisition during

an economic downturn in the U.S. Other immediate threats to the company in 2008, stemming from the FTC

reopening its administrative challenge of the Whole Foods vs Wild Oaks which Whole Foods contested.

The entering of Tesco subsidiary Fresh and Easy Neighborhood in grocery and naturals market may

over saturate market and slow down whole Foods growth in the Organic and Natural Foods market. Whole

Foods may need to create alliances with Individual health grocers offering assistance to ensure that there is a

strong market for healthy and pure products and these other smaller units won’t be gobbled up and disbursed by

dooming competition from discount giants trying to control retail groceries with unhealthy substitutes.,

Whole foods will need to spend more in advertising to create health awareness and educate consumers

on the consequences of eating environmentally unsafe foods. Maybe they can fund a reality show or a Healthy

Foods Show on Health or Cooking Channel promoting their brands,, missions and community and international

food Improvement advocacy.

4. Complete a SWOT analysis and identify significant opportunities and threats facing the organization

There are many issues in terms of SWOT analysis that we may sort them which listed as follows:

Strengths

• 2007 Annual Report 10k form indicates that the company grew 7.1 percent in store revenues and

achieved an average of 34.8 Gross margins. Store contribution or sales per store minus cost of goods

sold minus operating expenses equaled an average of 8.9% per store.

• Can sell stock on NASDAQ exchanges to raise capitol for growth and expansion efforts
Competitive Forces and SWOT Analysis 13

• Over 30,000 varieties of Organic and Natural Food items

• Ownership of nine distribution centers.

• Ownership of Nine regional bake houses

• Ownership of five regional commissaries.

• Ownership of two produce procurement centers which facilitated procurement and distribution of all

produce.

• Ownership of three seafood processing plants in key geographic locations

Weaknesses

• Relationship with FTC over acquisition of Wild Oats

• High Debt of $700 million

• Under funded advertising and marketing programs

• Vitamins and Supplements purchased from outside supplier

• No alliances or ties with any of

Opportunities
• Expanding their customer base and creating Brand Loyalty through internet such as web
based stores and health Information and environmental Blogs, and Social Networking
through Facebook Linked In and Twitter.

• Partnering with Largest Supplier of Organic and Natural foods in U.S.

• Start an Organic and Natural Foods RSVP membership charging $10 and offering
members 20 percent discounts on all their purchases from whole Food or bulk discounts
from fish, baked subsidies sending them a weekly, monthly E-newsletter filled with
coupons, information on health and wellness and news on Whole Planet activities.

• Form alliances with individual grocers offering growth assistance through partnering
with them to achieve economies of scale and better product offerings for their customers.

• Expand market to where lower income families can become knowledge about healthy
foods; form alliances with local & State social services and Health agencies providing
discounts for Food Stamp recipients and through company health and wellness programs
Competitive Forces and SWOT Analysis 14

• Create own vitamin and supplements or create alliance with larger environmentally
concerned giant to create awareness health consciousness.

• Seek alliances with top food processors such as Kellogg’s, Green Giant, and Pepsi Cola
to create a natural Brand Organic Beverage.

• Seek merger with Fresh Foods market to create sustained existence and economies of
scale in the Organic and Naturals market.

• Seek alliances with Celebrity, Diet health and Well Being and other Green Peace
organizations that champion and endorse the Whole Foods mission to improve Food
Quality around the world.

Threats

• Over saturation of the market or competition with grocer giants i.e., Wal-Mart under emphasis of selling

organic and natural foods over their everyday low prices. They have been in market longer and have

more resources to commit to marketing and etc.

• Price war with larger competitors undermining quality of true organic and naturally grown animal ,

seafood products by introducing or marketing technological/ genetically based substitutes into market

that can be purchased at fraction of price.

• Economy economic conditions and employment rates lay-0ff and etc. Majority in market cannot afford

to buy

• Changes in the availability of quality natural and organic products could impact business

• Future economic factors could cause impairment of goodwill

• The Company’s business could be severely impacted by a widespread regional, national or global

health epidemic.

Discuss how Whole Foods can use it strengths and opportunities to achieve a sustained competitive

advantage in the marketplace.

Whole Food has many programs which provide sustainability to their business efforts. Some the areas
where they have stewarded change and good practices are as follows:

• Continue to delight, satisfy & surprise customer with hard to find organic and natural items
Competitive Forces and SWOT Analysis 15

• Partnering with Largest Supplier of Organic and Natural foods in U.S.

• Start a Organic and Natural Foods RSVP membership charging $10 and offering members 20 percent

discounts on all their purchases from whole Food or bulk discounts from fish, baked subsidies sending

them a weekly, monthly E-newsletter filled with coupons, information on health and wellness and news

on Whole Planet activities.

• Form alliances with individual grocers offering growth assistance through partnering with them to

achieve economies of scale and sustainable product offerings for their customers.

• Supporting fishing practices that ensure the ecological health of the Ocean and the abundance of Marine

life.

• Promoting and selling the products of well managed fisheries.

• Partnering with groups who encourage responsible practices and provide the public with accurate

• Market Seafood from well managed fisheries to other supermarkets i.e., Wal-Mart, Costco in bulk and

under Whole Foods Brand to expand brand awareness. (Wal-Mart sells Boston Market prepared meals).

• Seek merger with Fresh Foods market to create sustained existence and economies of scale in the

Organic and Naturals market.


Competitive Forces and SWOT Analysis 16

References:

1. Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy: The quest
for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York: McGraw-
Hill-Irwin

2. Whole Foods Market, Inc. Annual Report on Form 10-K for the Fiscal Year Ended September 27, 2009
taken from http://www.wholefoodsmarket.com/company/pdfs/2009_10k.pdf last opened April 25, 2010.

3. Porter’s Five Forces of Competitiveness Model taken from http://www.themanager.org/Models/p5f.htm


last opened April 25, 2010.