Whole Foods Strategy Analysis Essay

2870 Words Apr 15th, 2013 12 Pages
Whole Foods’ market strategy is built upon their fundamental differentiation from conventional supermarkets. We strive to meet our strategy by working under the motto of Whole Food, Whole People, Whole Planet. At Whole Foods we use a focused differentiation strategy to offer unique products to our customers in a narrowed market. We focus on selling high quality organic and healthy foods that our customers can feel comfortable eating at a higher price. Whole Foods’ competitors include Kroger, Trader Joe’s, and Fresh Market. These three competitors operate under different strategies to set themselves apart in the grocery market. Kroger operates under the cost leadership strategy. They set the floor price in the market that still allows them …show more content…
At Whole Foods we are able to use America’s trend of healthy living that allows us to thrive under a focused differentiation strategy. Americans are willing to spend extra money on our products since we go out of our way to guarantee the products are organic. We are able to achieve growth in our market by opening on average ten stores per quarter across the nation. We plan to reach a total of one thousand domestic stores in the future.
Whole Foods is affected by all five forces in the five forces model. At Whole Foods we have a low risk from new startups in the high-end grocery business. The threat of new entrants is low because developing a high-end grocery store and all of its distribution channels can be difficult. Whole Foods is already an established brand name grocer in American households and is well developed throughout the nation; therefore, new entrants into the high-end grocery market are no threat to Whole Foods. However, Whole Foods stands more of a threat from a regular grocery store, such as Publix, deciding to become a high-end grocer or open a high-end branch of their store. A regular grocery store already has some of the distribution channels established for their firm, so crossing over into the high end market would be easier and more of threat to Whole Foods than a completely new grocer. However, it would still be hard for a

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