Whole Foods

The range of competitors within the overall industry include chain and independent supermarkets (Krogers, Safeway, others); mass merchandisers and super centers (Wal-mart,Target); convenience stores; wholesale clubs (Sam’s); restaurants and fast food chains andnatural food stores (Whole Foods, Wild Oats

In what ways does Trader Joe's demonstrate the importance of each responsibility in the management process—planning, organizing, leading, and controlling?

This results from the fact that it is a mature segment with many well established companies vying for market share. The industry is highly consolidated and very fragmented. To grow their businesses, companies rely heavily on mergers and acquisitions to capture additional market share. Historically, the grocery industry has been characterized by slow growth which results in strong price competition and the development of aggressive marketing campaigns between existing firms. Perceived product quality and strong brand recognition by consumers are the basis of competition among firms in the industry. The source of General Mills’ competitive advantage lies in its ability to develop innovative products and highly reputable brands. As a result, they hold cost leadership positions across a number of grocery categories. Exhibit 1 shows the top US companies according to their sale of packaged foods globally. Market leaders include Kraft Foods, PepsiCo, Nestle, Mars, Kellogg, and General Mills, however, neither company possess an overwhelming share of global sales. This is in part due to the large degree of product diversity throughout the industry and the strong brand rivalry of each competitor’s labels.

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

Whole Foods Market is one of the biggest organic and natural whole food suppliers in the world. They provide a wide variety of select foods that are without hormones or antibiotics and are stamped with the U.S. Department of Agriculture’s stamp of approval. They value the fact that they can provide people with access to healthy food and be identified with being socially and environmentally responsible.

Whole Foods is a retailer that specializes in organic foods and it has done an excellent job of determining its target market and how to position itself. Instead of going head to head with large food retailers such as Wal-Mart, Whole Foods has found a niche market that works perfectly for itself. This niche market is one that prides itself on being health conscious and environmentally responsible and Whole Foods has done a great job of positioning itself in the same way through its environmentally safe actions and its use of the local community to stock its stores. However, as Whole Foods grows and expands, a person has to wonder if the company will be able to maintain this same position or will have to make

Whole Foods will need to research and figure out marketing strategies to keep the customers loyal to Whole Foods. One of the main reasons customers will go to different supermarkets that have organic foods is because of the different department stores inside the grocery market. For instance, some grocery stores sell organic vegetables, but also have regular vegetables. Some of the larger grocery stores have banks, photo stores, insurance companies that make your stop at the larger grocery store

Whole Foods has become the world’s largest retail chain of natural and organic foods supermarkets. Not only is their focus to transform the way consumers look at food and its natural benefits, Whole Foods is looking to make a difference in the world with their products. Whole Foods appears to be in a rapidly growing market. Whole Foods has worked hard to set their products apart from other grocery retail chains and while their prices might still be considered high across the board, their products are geared towards a more health conscious individual who is willing to pay more for a healthier product.

Exhibit A shows Porter’s Five forces analysis for Trader Joe’s. Competition within the incumbents is high. Trader Joe’s biggest competitor would be Whole foods, nation’s largest retailer of organic and natural

Whole Foods continues to grow as the leader in organic and natural grocery supplier in the United States, Canada, and England. The company has continued to open new stores in new markets, as well as, opening two 365 by Whole Foods Market stores. Whole Foods became the industry leader by providing high quality natural and organic food products for consumers, which is a better and healthier product for consumers to consume. This is a big part of their competitive advantage. Other grocery stores are limited in their organic supplies, where as at Whole Foods, it is the primary focus. Another comparison is that with the help of Instacart, Whole foods is now the leader when it comes to delivery of fresh groceries then any other grocery in the industry. (Quarterly Results)

The main competitors in the industry are all small to medium and large sized purveyors of organic foods. The major threat comes from Whole Foods Market. This firm is best positioned to compete and control a sizable market share due to its growth strategy. Much of Whole Foods Market inventory is a result of mergers and acquisitions of small, independent retailers of organic foods and specialty products (Whole Foods Market History, n.d.). Our competitors that we must pay the closest attention are Whole Foods Market and Trader Joe’s. Although Whole Foods Market has a merger and acquisitions growth strategy; Trader Joe’s surpasses Whole Foods Market in sales—$1,734 versus $934 per square foot respectively; due to higher product costs and failure

Whole Foods Market offers a wide collection of natural and organic products with an importance on unpreserved foods. The company offers a massive variety of products from groceries, catering and prepared foods, body care, lifestyle products, and supplements. Aside from the products, the company established many more brands such as ‘365 Organic Everyday Day Value’, ‘Health Starts Here’, and ‘Whole Fields’, just to name a few that emphasize an approach to eating healthy by building better meals and endorsing animal welfare on ranches and farm.

The grocery industry is highly fragmented, with a multitude of strong regional players (Safeway, Publix, Kroeger, Wegmans, etc.). The largest grocery retailer in the United States is Wal-Mart, with an estimated 33% share. Other major retailers are targeting this segment of the industry, focused on a relatively narrow selection of key commodity foods at relatively low prices (Forbes, 2011). Whole Foods competes in a segment occupied by differentiated grocery players including Trader Joe's, Fresh Market and a highly fragmented selection of local and regional upscale and health-conscious grocery stores. The big players in the industry usually carry ranges of organic and natural products as well, siphoning off some business from Whole Foods. As Whole Foods grows, it comes into competition with mainstream grocery retailers more frequently (McLaughlin & Martin, 2009).

International strategies are plans that are made by organizations to guide them in different commercial transactions that take place in different countries. On the other side, the organizational structures highlight how an organization plans its hierarchy, identify tasks to its personnel and ensure that workforce collaborate to reach a common goal. For a company to be successful in the international venture it has to properly organize its human resource, support devices as well as how it will group its products, services or brand so that it can increase its effectiveness. Therefore identifying the proper international strategy and organizational strategy for Whole Food Market will assist it to accomplish the goals that it has set and clearly

Marketed as ‘America’s healthiest grocery store’ the company has successfully grown to 408 stores across the world with sales of $14 billion in 2014 (Whole Foods Market, 2015). The firm is positioned as an upmarket grocery due to the emphasis on natural, organic origins, and as a result are able to charge a premium for their products. Through efficiently running its operations and stores, Whole Foods are able to maintain healthy 4.02% profit margins (Financial Times, 2015) and operating margins well above the American grocery store industry average at 6.58% (Bloomberg, 2015). Looking at 2015’s quarter 1 figures it is clear to see that Whole Foods have had a hugely successful year with sales of $4.7 billion, up 10% from the same period last year. Furthermore, they opened 9 new stores and have signed a further 11 new leases.