1.The Disruption Of Significant Supplier Relationships

1383 WordsFeb 2, 20176 Pages
1. The disruption of significant supplier relationships could negatively affect the business. The company is overly dependent on its supplier (United Natural Foods, Inc.), more than 30% of their total purchases in 2016 are from the same supplier. If the relationship with the supplier become difficult or it is cancelled the company may face serious problems of supplying. 2. A loss in consumer confidence in the safety and quality of certain food products could materially impact the results of the operations. One of the company’s competitive advantage is their high quality standards; that’s why any concern about the quality or safety of any product could cause that consumers avoid purchasing in the store and/or them to change to other…show more content…
Whole Foods Market may not be able to adapt the distribution, management information and other operating systems to adequately supply products to new stores at competitive prices so that they can operate the stores in a successful and profitable manner. 4. Increased competition may adversely affect the Company’s revenues and profitability. Lately, some of the biggest competitors of Whole Foods Market are expanding more aggressively in offering a range of natural and organic foods. Also, the company’s competitors include but are not limited to local, regional, national and international supermarkets, natural food stores, warehouse membership clubs, online retailers, small specialty stores, farmers’ markets, restaurants, home delivery and meal solution companies. They are competing not only for products, but for customers and locations. Some of these competitors have greater financial and marketing resources than Whole Foods Market do, so they can assign more resources to promoting and selling their products. As competition intensifies, the company’s operating results may be negative, impacted through a loss of sales, reduction in margin from competitive prices changes and greater operating costs (marketing). 5. Losses in perishable foods product could considerably impact the company’s results of operation, the company’s stores

More about 1.The Disruption Of Significant Supplier Relationships

Open Document