Business Analysis: Whole Foods

Whole Foods Analysis
Introduction
This case analysis of Whole Foods was focused on utilizing analytical tools that focus on all aspects of a business. These tools are meant to give a starting point for recommendation about business strategy and where the company should focus on improving. The first tool utilized was the SWOT analysis. The SWOT analysis gives an over view of the company’s strengths, weaknesses, opportunities, and threats. It is a great tool to utilize when beginning an analysis due to the general overview the tool gives by identifying core competencies. The SWOT analysis also gives insight into Whole Food’s competitive strategy. Following the general insight into Whole Foods a competitive analysis is utilized to compare Whole

Whole Foods commitment to organic, non-modified foods has been the base of their broad differentiation strategy. By offering products vastly different than the normal supermarket, Whole Foods has created their own niche market.
• Whole Foods sought out local suppliers in order to gain popularity amongst the communities they entered. Not only does their relationship with local suppliers allow them unique products that further broaden their diversity, but also gains them goodwill amongst locals.
• In a supermarket industry that focuses on low prices, the quality of foods has been degrading in lieu of quantity and lower costs. Whole Foods is focusing on quality instead of low prices. Their customer base has high loyalty due to the lack of substitutes in the organic food

Core competencies such as quality customer service, superior product quality and a focus on local suppliers are also revealed. Strengths identified led to Whole Food being able to withstand the market giants such as Walmart and Kroger. Whole Foods dedication to be a luxury shopping experience with superior quality food and customer service resulted in the growth of their brand value and expansion into new market areas. Weaknesses of Whole Foods revolve around the high prices that they have become known for. Whole Foods image was hurt by the “Whole Paycheck” reputation and the high prices are limiting Whole Foods from growing their customer base. Opportunities Whole Foods currently has relate to Amazon’s buyout of the company. Having an industry giant like Amazon as a parent company allows Whole Foods greater amount of bargaining power over their suppliers. Amazon also allows Whole Foods to enter into the e-commerce market. Whole Foods also has the ability to become the first global organic food store. Threats include the interest of organic foods by supermarkets, fad driven sales, and the prices of organic foods are volatile in times of natural