The Growing Demand Of Organic Food

Whole Foods Market ( WFM ) entered into the organic nutrient market earlier than other food market shops. Today, Whole Foods Market is the biggest retail concatenation of natural and organic nutrients market in the United States. There are 172 shops in North America and the United Kingdom. The mission is that “ the company is extremely selective about what they sell, dedicated to rigorous quality criterions and committed to sustainable agribusiness. ” That provides high-quality goods to clients and high net incomes to investors. Whole Foods Market targets US $ 10 billion in gross with 300-plus shops by 2010 but it does non impact the merchandises ‘ quality criterion and its current repute. The company offers high quality of all-natural nutrients, and so they engage in ethical concern patterns every bit good as supply a motivational, respectful workplace. The company ‘s shop merchandises are expanded from dry goods to fresh green goods such as meats, fish and prepared nutrients. Furthermore, Whole Foods carries the best tasting and most alimentary nutrient which are unmodified by unreal add-ons, colorings, sweetenings and preservatives. Whole Foods uses different concern theoretical accounts improbable traditional food market shops. Now a yearss, people aware how organic nutrient is healthy for them. As a consequence, many other food market shops enter into the organic nutrients market and hence, Whole Foods Market is enduring the deficit of organic nutrients to fulfill the turning demand.

Analysis

General environment

Economic

Whole Foods Market has been turning with the increasing tendency of wellness and fittingness consciousness. The company ‘s growth and go oning is depends on this tendency.

Global

There are more than 270 shops in North America and the United Kingdom. Furthermore, Whole Foods Market has expanded to European and Canada. Expansion makes immense possible growing as a effect of the big population and it grasps a more sophisticated organic-foods market.

Political/legal

Standards of organic nutrients are qualified by statute law in the US Department of Agriculture and the European.

Socio-cultural

By turning per centum of adult females working outside, most of them do non desire to cook at place. Harmonizing to this, there is gross revenues increasing in the prepared nutrients subdivision which is one of the merchandise subdivisions of Whole Foods Market.

Demographic

The income distribution, age construction and population size will impact the demand for organic nutrients merchandises. Whole Foods Market focuses the topographic points where 40 per centum or more of the people have a college grade because they are more likely to be witting and helpful of nutritionary issues. Furthermore, the ripening of babe boomers will do the growing of senior demographic. In general, Baby Boomer coevalss are turning demand for organic nutrient as they are health-conscious and can afford to pay higher monetary values. Following decennary, urban singles are another group with excess disposable income because of their deficiency of dependents. These two groups will assist an chance for growing for Whole Foods as they are willing to pass money on purchasing of healthier nutrient picks.

Technological

In current, on-line ordination and self-checkouts are turning highly. However Whole Food has non yet progress in one of these because their motto is to hold friendly helpful service.

Decision

To reason, this general environment analysis is straight impact on the sustainability, profitableness and survivability of Whole Foods Market industry.

Industry analysis

Overview

Whole Foods Market is selling the organic merchandises in the best quality of course and the company intent is non merely for client satisfying and delighting but besides for squad member felicity and excellence. The industry creates wealth all the manner through net incomes and growing. Furthermore the company is caring about their environment and communities.

Menace of new entrants – Low

There are many entrants such as mugwumps ; conventional retail merchants already exist in the market. The lone issue is how they will be concentrated in prosecuting whatever net incomes can be appreciated from the natural, organic class. This is what Whole Foods Market should be traveling through their concern scheme about.

Dickering power of providers – High

There is a restriction in end product of organic nutrients as merely 3percent of US farming areas are produced the natural and organically adult nutrients. Furthermore, uninterrupted turning of demand for natural and organic nutrient, providers are acquiring force per unit areas on deficit of merchandises. Therefore, Whole Foods Market faces non merely with competition of the conventional retail merchants but besides buying goods from providers.

Dickering power of purchasers – Low

Because of purchasers do non care about the monetary value of organic merchandises in the market ; they are able to pay premium monetary values for healthier and organically adult nutrients. In add-on, there is really less trade names for comparing the monetary values in organic merchandises.

Menace of utility merchandise – High

There is a high menace of utility merchandise in the Whole Foods Market. Consumers can easy exchange to the conventional retail merchants who offering the lower priced goods.

Rivalry amongst bing rivals – High

Today, the organic nutrients industry is turning up and many conventional retail merchants enter into the organic market. Therefore Whole Foods Market will dispute competition and it is truly tough to maintain its repute. Besides consumers are acquiring concerns their eating wonts, natural nutrients shops like Whole Foods. Hence, competition has increased among food market shops such as Stop’N Shop and Shaw ‘s which are now selling natural nutrients.

Is this an attractive industry?

Now a twenty-four hours, organic nutrients industry is popular among purchasers and it is go oning to turn beautifully. Whole Foods Market stands really powerful in the market and makes more net income than other nutrient industries.

Rival analysis

a-? Trader Joe ‘s merchandising high quality of merchandises at low monetary values. The company has been expanded 215 shops in the United States and it offers upscale food market menu such as wellness nutrients, prepared repasts, organic green goods and nutritionary addendums.

a-? Wild Oats is a retail food market shop and the company merchandising merchandises range from organic nutrients to traditional food market ware. Oats is the 3rd largest natural nutrients supermarket concatenation in the United States in footings of gross revenues. There are 100 full-service shops in 24 provinces and Canada.

a-? Stop ‘N Shop Supermarket Company which is based in New England provides the best quality of natural nutrients in its conventional shop. The company promotes merchandises through gross revenues to pull the purchasers.

Internal analysis

Tangible resources

There are 172 shops in the United States, Canada and the United Kingdom. Furthermore, the company has eight distribution Centres, seven regional bake houses and four commissaries. Whole Foods focuses on team-based environment and the company has good trained employees.

Intangible resources

John Mackey, the laminitis of Whole Foods Market has experience in the food market concern. The company focuses on non merely quality criterions nutrients that are free of preservatives and organically grown but besides best services to clients. Besides it has good repute and well-known trade name name. The company established the knowing and originative work force. Furthermore, Whole Foods Market gets the clients ‘ trueness and satisfaction.

Capabilities

Outstanding client service R, V, I, N

Hike the efficiency and effectivity of merchandise lines R, V, N

Innovation capacity in Whole Foods Market V, I, N

Production of high quality of organic goods V, I, N

Best preparation of employees V

The ability to keep good relationships with providers R, V, I, N

Core competences

The best quality natural and organic merchandises are available in Whole Foods Market Industry. Whole Foods Market can function clients to fulfill and please. Furthermore, the company provides their employees good public presentation and felicity. In add-on, Whole Foods Market creates growing equity and net incomes. Whole Foods Market besides cares about environment and community. The company is utilizing effectivity of direction systems in relationship between clients and employees. Harmonizing to above statements, there is a competitory advantage in Whole Foods Market.

SWOT analysis

Strengths

One of the strength for Whole Foods Market is selling the high quality criterions of merchandises. Furthermore, Whole Foods Market owns clients ‘ trueness and besides the company is recognised as a strong trade name name because of the consequence in turning demands for fresh nutrients and people ‘s good health. The shops locations are chiefly in metropoliss and hence, it is run intoing the demands of the local community.

Failings

Whole Foods Market offers the organic nutrients in high monetary values. Besides, there is no other ways to advance its trade name. The company depends on viva-voce advertisement from its purchasers to assist market itself in the local community. In add-on, Whole Foods Market is confronting the scarceness of natural organic nutrients.

Opportunities

Today, people are more witting about how of import of devouring natural and healthy nutrients, Whole Foods Market hence need to try on those clients to come in into its organic shops. Generally, ageing of the Baby Boomers is one of the chances for Whole Foods Market because this section of population becomes wellness consciousness and willing to pay premium monetary values for healthy goods.

Menaces

Inefficiency of Organic nutrients supply is the menace for Whole Foods Market due to the increased offering of organic nutrients by other rivals like supermarkets or concatenation shops. Furthermore, many of shops such as Wal-Mart, Wegman ‘s and Publix have started to sell organic nutrients.

Recommendations

Due to a deficiency of available nutritionary trade names, Whole Foods Market entered into the private label merchandise concern. There are three private label merchandises which are recognised as organic nutrients such as 365 Everyday Value, Whole Kids Organic and 365 Organic Everyday Value. The company should run its private label merchandises to tap the demanding of organic merchandises from the clients who have already wellness consciousness.

Whole Foods Market merely relies on Word-of-mouth recommendation. Therefore, Whole Foods Market should advance their merchandises in assorted signifiers of advertisement and public dealingss to increase their trade name image, trade name trueness and net incomes. Ad will assist the Whole Foods Market non merely increasing gross revenues of current clients but besides conveying in new clients.

Whole Foods Market has customized its locations to worldwide like international enlargement. Expansion is truly a good program as people all over the universe will acquire information about the advantages of organic nutrients. However, Whole Foods Market should be cognizant the state ‘s economic conditions before the company decided to spread out at that place.

Whole Foods should develop low priced goods under its name for less disposable income consumers. Besides, the company should frequently do seminars for consumers those who are non knowing and so portion the cognition that how organic merchandises are of import in every twenty-four hours of their life.

Whole Foods should utilize backward integrating scheme to stabilise its supply line. This means that the company should purchase farming areas to bring forth the choice criterion of organic nutrients itself. It will maintain more redemptive and cut down cost than purchasing goods from providers. Furthermore, the company no demand to worry about the deficit of organic nutrients supply.

Referencing

Dowling, PJ. , Hanson, D. , Hitt, MA. , Hoskisson, R E. & A ; Ireland, R.D. , ( 2008 ) , Strategic Management, 3rd Ed. Australia: Cengage Learning Australia Pty Limited

Whole Foods Market. Available from hypertext transfer protocol: //www.wholefoodsmarket.com ( Accessed 19 September 2010 )