Whole Foods Market

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(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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Given that the organic foods industry is a rapidly flourishing one with a huge potential for profits, this would be an attractive industry to compete in. The high entry barriers, lack of substitute products and the huge pool of potential consumers will certainly mean an immense potential of opportunities in an industry that has just started to grow. Whole Foods Markets is in an excellent position to capture these opportunities and this will be explained below.

(iv) Responses to Wal-Mart’s foray into the organic foods industry

Focus strategy on market penetration, using existing stores situated in prime locations

Whole Foods Markets has been able to reach out to its target markets through the prime geographical locations of its stores. By further leveraging on these locations through the offering of more customized organic products, Whole Foods will be able to penetrate the market deeper. Given that fact that it has established the Whole Foods Brand in affluent communities, it will be in a better position than Wal-mart to widen its target market and to reach out to potential customers.

Increasing brand awareness, appeal and loyalty though a more aggressive advertising and public relations campaign

By increasing brand awareness and image, the reputation of Whole Foods will be enhanced. This would be critical in reaching out to potential customers, as well as retaining current customers. As mentioned in the case, Whole Foods does minimal

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