Whole Foods

955 Words4 Pages
Strategy for Whole Foods Market Current Strategic Issues 1. How does Whole Foods sustain positive growth in sales? 2. How does Whole Foods cope with the downturn in the economy? 3. How does Whole Foods achieve sustainable competitive advantage? Rationale for Issues One of Whole Foods main strategic issues is how it should sustain positive growth in sales. Sales growth in 2008 was 0.8%, compared to sales growth increase of 8.2% in 2007. However, much of these low sales growth figures were at the former Wild Oats stores rather than the stores that Whole Foods Opened. This is definitely a strategic issue because Whole Foods’ current strategic model is not showing positive sales growth. From $203 million in 2006, it fell to…show more content…
I believe there is an unrealized market in central Canada and Europe that needs the presence of Whole Foods. Of course, I would not increase debt greatly and just expand anywhere in Canada and Europe. To enter foreign markets I intend to create an international business department that will research the cultural customs, tastes, trends, population growth, spending and eating habits etc. This will tell Whole Foods what markets are most lucrative to penetrate. Then Whole Foods would create a test site in the potential market, and if sales are sufficient to justify expansion in the region then more stores will be opened. Whole Foods has a great competitive advantage, as the population of the world is becoming better educated about foods, nutrition, and good eating habits. Whole Foods has the culture and the know how to accommodate this new population trend and it is just a matter of where to put the stores to achieve a sense of monopoly where people can only come to Whole Foods in order to buy the highest quality, most flavourful and naturally preserved foods available. Once Whole Foods situates itself across Canada and Europe, I believe this will be the best way to pay off its long term debt, because sales will be at all time highs, therefore obtaining positive cash flows from operations that will exceed capital expenditures for years to

More about Whole Foods

Open Document