Whole Foods Market Case Analysis

1687 Words Apr 13th, 2011 7 Pages
Whole Foods Market Case Analysis
Whole Foods Market has received recognition as recent as January 27th 2011 when CNBC aired Supermarkets Inc: Inside a 500 Billion Money Machine. “Whole Foods is arguably the most influential, and by some measures, the most successful supermarket chain in the world. The specialty gourmet store has grown into a Fortune-300 company offering specialty foods and locally grown organic produce.1” CNBC goes on to state that even “Established brands like Safeway, Giant Eagle and Kroger are cultural icons as familiar as our own street names, but they are under constant attack from brilliant upstarts like Whole Foods…1” From the general supermarket industry Whole Foods Market breaks down into even a smaller specific
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Whole Foods Market has had experience in the natural/organic retailing industry since 1980. For the past 30+ years they have built over 300 large customized stores in North America and also in the United Kingdom. Whole Foods Market is known to provide the highest quality of products.
Weaknesses of Whole Foods Market include the high prices for their products; this is a direct result of the company’s focus on their availability of the finest products. The majority of Whole Foods Market inventory consists of perishable items. This can sometimes pose problems because, produce, milk, eggs have a short shelf life, Produce especially needs constant maintenance to be graded as well as pulling the damaged or bruised produce off the sales floor. Working as a produce clerk for several years I know the importance decreasing the cost of throw away products. It hurts the company’s sales especially when you are dealing with pricy high quality natural and organic foods. Another weakness the Whole Foods Market faces is the high costs associated with expanding into different locations.
The third part of SWOT is external opportunities that WFM faces in the industry. Over the past couple of decades more consumers