Whole Foods Swot Analysis

1365 Words Feb 13th, 2012 6 Pages
Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market. Existing trends in the retailing of organic foods are healthier eating habits, concern over purity of foods, health-consciousness and the idea that eating organic foods have a positive effect on the environment (Thompson, 2010). The craze of purchasing only organic foods has an effect on not only Whole Foods but on many supermarket chains. Although organic foods are marked up in comparison to processed foods there is much competition in this market and thus the profit margin is not very high when selling these items.

Evaluate the competitive environment of the firm: Apply Porter’s model and analyze each factor relative to the
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A couple of strengths of the Whole Foods Market include their merchandising and their ability to build their layout according to the area where the market is located. Thompson (2010) notes that produce and other items are color coded to attract the attention of consumers. Also prior to building a Whole Foods Market, representatives do an extensive analysis of the demographics in the area. With the information obtained the markets are built and merchandised to attract their target audience. Weaknesses of Whole Foods Market include the high price point and the limited marketing techniques used. Whole Foods Markets are strategically placed in areas where a large amount of the population can afford their products. However, the price point is so high that others in the area stray away from shopping with the retailer. Thompson (2010) indicates that Whole Foods does not spend funds on marketing and depends on its customers to spread the word through the power of word of mouth. Some opportunities that exist are expanding marketing to lower income areas and offering Whole Foods brand items to other retailers who may be only selling a limited amount of organic items. By educating lower income families it will assist in building a better quality of life. As stated before, even if these families only purchase a few items from Whole Foods they will become loyal customers. Building an alliance with retailers

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