Whole Food Markets 2008

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Whole Foods Market Case Study |

MGMT 702-101 Case #1 Submitted To: Prof. James Farmer Submitted By: |

Pranav Kurlawala: 3000777737 |

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January 28th, 2015

1) Are there any particular strategic reasons for Whole Foods Market to use large-scale (large square footage) stores to sell organic and natural foods?

A) Whole Food Markets was founded in 1980, from where it evolved from a local super market into world’s largest retail chain of natural and organic foods supermarkets. During the year 2008, Whole Food Markets have acquired 276 stores.

In 2000, the optimum point, which made the company most beneficial for most markets, was the company’s store size.

Yes, there was various strategic reasons The Company had realized that the larger store size was being more beneficial according to the rule of economies of scales. Which means that a company, which has a larger size, has more advantage of cost as the output of the product is increased due to the larger size. The larger store size attracted the customers and the perishable nature of their item requested immense cell rack spaces and fitting stockpiling and in this manner it obliges expansive store The idea that the WFM had developed was that they didn’t wanted people to just come and shop from their store, but also that they should have a interactive and soothing experience. It was only due to the larger store size that the company could make such a pleasurable experience for the people.

The large size of the store could make it possible to set up lot of things that the normal organic stores could not offer. The stores were colorful, they had chefs working in the open kitchen for the people to view them, salad bars, dining areas, restaurants, recipe cards, valet parking, café, home delivery, people who would give massages and much more things to offer the people who walk into their stores. The one main reason why this could be possible was the store size that ranged beyond 30000...