Figure 1 USA Organic Sales Growth Another reason is that, when Whole Foods was formed, there was no competition at all, and nowadays there is a lot of competition, because mass retailers had to adapt to new consumer trends as this one. Therefore, Whole Foods’ key competitors are Kroger, Costco, Walmart, Aldi. The biggest problems the company is facing right now are market saturation and high competition. Large variety of retailers nowadays buy and sell natural and organic products. The other problem is market saturation.
Due to the abundant businesses it makes competition intense. Amazon.com competes directly with big firms such as Barnes and Noble and EBay and some smaller firms. The threat of new entrants that are able to compete with Amazon.com is low. The strong brand image of Amazon should be an advantage in any price
The closest competition, Walmart, does most of their business in an actual store. Amazon dominates e-Commerce, the sole reason why people think the company could be a monopoly. However, The company does not fit the definition of a monopoly. As long as prices do not go up, consumers do not suffer, and competition challenges Amazon, the company does not fall under the category of a monopoly. The fact that no one has seen anything like Amazon before makes people worried; this produces people into believing that the five- hundred and sixty billion dollar company has control of the economy, thus forming a monopoly.
The supermarket chain has been offering organic and healthy food since its beginning in 1980 and has been moving in different cities to reach more shoppers. Sadly though, its high-priced grocery items have been its biggest problem ever since. And it’s really exciting to see if bargain retailer Amazon can do something about this. However, although this Whole Foods slash Amazon combo seemed like the greatest deal ever, some analysts are shaking their heads and being skeptical about it. One of them is Synovus Trust’s senior portfolio manager, Daniel Morgan.
Porter’s Five Forces Analysis for Whole Food Whole Foods Market is in the organic and natural food industry, which is part of the retail industry. Through Michael Porter’s Five Force analysis, we identified the most significant external forces that Whole Foods Market experiences in the competitive environment and highlighted issues and concerns that shape the company’s strategic direction. Strong Force of Competitive Rivalry According to research, Whole foods Market experiences extremely strong competitive rivalry. The company’s business environment, which is the organic and natural food industry, has a high number of existing competitors, who aggressively compete based on service, quality and price; the fact that switching costs for consumers to shift to other retailers are significantly low contributes to the strong force of competitive rivalry. (Strategic direction: differentiates products based on high quality) Strong Force of Bargaining Power of Customers Consumers of Whole Foods Market have strong bargaining power regardless the weak force of small volume purchases compared to the total revenues of the company.
The business slogan most related with Whole Foods Market, which is : "Whole Foods, Whole People, Whole Planet." Whole foods Market have a direct vision to be in high level and excellent in the market industry , Whole people means that the company wants to provide and supporting a healthy lifestyle, Whole planet the organization aim to achieve international leadership, help and support people by providing healthy diets and they set a goal to delight shareholders. According to Mackey’s vision" was for Whole Foods to become an international brand synonymous with carrying the highest-quality natural and organic foods available and being the best food retailer in every community in which a Whole Foods store was located." • Become an international brand synonymous • Being the best food retailer in every community The organization exceed of just being food retailer, they attend the world of succeeded by satisfying their vision with measure of customers fulfilment (loyal customers and retention customers), increase the capital and the profit, employee superiority and pleasure and the improvement and support of environment, local and community. So the result is good communication leads to well understanding and more
With high quality employee, Whole Foods is able to provide the needed customized service for customers by guiding them to make food choices according to their needs. Whole Foods core competencies lies in the fact that it has a dominant market share in the organic food market and has more stores than any other single competitor (Monteiro, et al, 2013). The company’s shops are strategically located in visible and prominentlocations. This increases its recognition and impacts on its brand value. Whole Foods has built the reputation, trust and friendship among the suppliers and customers.
Target has also failed to change its business model to adapt the changing times around them. Only recently has Target started more of an aggressive push on their online store. Target has also failed to tap some potentially rich areas of retail. These areas would've including filing station and financial services. Target does not have a fueling station unlike Kroger which is America’s favorite fuel retailer.
Target’s portfolio of owned and exclusive brands is also its strength, which allow retailer to a valuable differentiating lover in high competitive retail environment. The company is a well-established and recognized brand name that is highly respected by customers after Walmart for the discounted retails of the item displayed. Target is viewed as a fun place to shop such like position as IKEA; people can play around,
Walmart depended upon their physical locations to keep them relevant, and it did, but not on the level that Amazon is becoming with online shoppers. As Amazon’s success continued, Walmart had no choice but to invest heavily in technology to solidify their place atop the retail industry. Amazon is now a household name just as Walmart is, and IT is one of the number reasons for