The Threat Of Supplier Power

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The threat of supplier power is moderate. There are only a select few organic producers that make up a large percentage of the organic food processed. Since a large number of 81 companies in 1995, the corporations that produce the majority of the organic food has been limited to approximately 15 (Remington, 2014).
Competitive Rivalry In the industry, competition is high in most areas of the United States. There are usually two to three Supermarkets in a given location depending on the population. Whole Foods has an advantage with the organic and natural food buying trends, but many other businesses in the industry such as Kroger, Costco, etc. have taken notice to the trend.
Threat of Substitution Whole Foods Market has a great selection of natural and organic foods trending previously mentioned. The threat of substitution is high though. One reason this is true is due to the “superstores” such as Wal-Mart and Target. Consumers can go to those stores to have a one store shopping experience for everything from food to clothing. Also, though the revenue in the industry, mostly goes to the top 50 stores, there still exists local markets and farmers that communities would rather support over the larger stores such as Whole Foods in the area.
Analysis from Porter’s Five Force From analysis of the force that affect the industry’s businesses, especially Whole Foods Market, include substitution of products, supplier power, and competitors. There are many methods a consumer can
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