Whole Foods Strtegic Analysis

7671 Words Aug 13th, 2012 31 Pages
Whole Foods Inc. Strategic Management Review | An Academic Review of Whole Foods Strategic Decisions |

Critical Strategic Milestones * Whole Foods Market founded in 1980 with 19 employees. (History, 2012 :1) * Whole Foods Market goes public on January 23rd, 1992. (History, 2012 :1) * In 1996 Whole Foods Markets acquires Fresh Field Markets picking up 22 stores located on the east coast and Chicago area for 4.8 million shares of common stock and an option for 549,000 additional shares. (Thompson, 2010; C-13) * In response to price competition from other large grocers Whole Foods launches its 365 Everyday Value product line in 1997. (Thompson, 2010; c-19) * In 1998 Whole Foods Market was name as of FORTUNE
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foods market. Customer preferences have shifted to looking for a higher quality product rather than what is most convenient. While not a controlling interest in the overall food market today, it is steadily growing with sales of $24 billion in 2008 in the U.S. and $52 Billion globally. Whole Foods accounted for .9% of total grocery sales in 2009. Customer preferences are slowly shifting to this higher quality organic produce.
Competitors Intersections: Trader Joe’s is the most appropriate rival to analyze for this section of the report dealing with how rivals are coping with the marketplace and how their actions are impacting Whole Foods. Year ending 2009, Whole Foods had $12 Billion in sales, while Trader Joe’s was $8.0 Billion. They are the next closest rival to Whole Foods. Trader Joe’s offered no discount specials or coupons like Whole Foods did when the recession hit hard in 2008. This may be a major factor in why Whole Foods is doing so much better than them currently. Marketing impact of Whole Foods can be seen by a direct increase in sales since the recession hit. Trader Joe’s does incorporate a low cost strategy in the marketplace. They utilize a wide selection of house labeled items that are a significant value compared to the name brands. These house labeled items are still

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