Whole Foods Market Environmental Analysis Essay

1315 Words6 Pages
(i) Environmental Analysis – External Opportunities and Threats
The demographic, economic and the socio-cultural segments would be the most relevant segments to Whole Foods Market. These segments have a direct impact on the profitability, sustainability and survivability of Whole Foods Market, and the organic food industry. The relevance of the demographic segment stems from the fact that the age structure, income distribution and population size are important factors which will influence the demand for organic products. The economic segment is relevant, as an affluent population will continue to drive and sustain demand for organic products. The socio-cultural segment is another relevant segment, where attitudes about quality of life,
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Other than an increase in consumption of fresh fruits, vegetables and grain-based products, vitamins and nutritional supplements have also seen an increase demand due to changes in societal trends. Americans are now more willing to splurge on healthy, organic foods. In fact, organic foods are deemed beneficial and it has since been accepted as a mainstream choice of diet. Changing preferences due to a higher proportion of women in the workforce also mean that consumers today prefer a one-stop shopping experience that is being offered by Whole Foods.
The organic food industry has seen a huge spike in growth that is expected to continue into the future due to an increase in consumption. This will provide Whole Foods Market with huge opportunities. In addition, a wave of ethical and responsible consumption has swept across America. Whole Foods’ decision to pursue sustainable activities will certainly give consumers an added incentive to purchase its organic products.

Stiff competition within the industry would be one of the key threats that Whole Foods will face. Strong competitors, coupled with grocery stores that have incorporated natural food sections into the stores, have made it more challenging for Whole Foods to maintain its pole position in the market. As the market for organic foods expands rapidly, mainstream supermarkets are also competing for a slice of the pie. Strict government regulations and the lack of prime locations have made it more

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