Whole Foods

2/24/13

Whole Foods Case

What are the strengths and weaknesses of Whole Foods? One strength that sets Whole Foods Market from its competitors is its great passion to bring high standard quality products to its consumers. Whole Foods obtains its’ foods locally and from all over the world, offering a wide variety. Whole Foods gains a competitive advantage when it comes to the size of the stores, not many natural foods stores have stores that are larger than 20,000 square feet. Whole Foods layout is very sophisticated offering a marketing approach by specifically placing its products. Speaking of competitive advantage, whole foods believes EVA or economical value added, equivalent to net operating profits after taxes minus a charge for the cost invested capital necessary to generate profits, is “the best financial framework that team members can use to help make decisions that create sustainable shareholder value.” After looking at the company’s website they states, “We believe [EVA] is one of our strongest competitive advantages.” One weakness could be the prices they set on these organic foods. Since, it’s a “special” product they offer it at a high price than conventional grocery products. Another weakness could be that fact that it really centralizes mainly in the U.S. lack of a global push could really be a missed opportunity.

 What are the opportunities and threats facing Whole Foods? Well, let’s start where I left off, there could be a huge opportunity in a global market. Expanding your reach could not only increase revenue, but could offer a competitive advantage by increasing brand awareness and by obtaining extra market space. Personally, I think they lack in that department. They have a store right here in Arkansas and I didn’t even know about it until last week’s discussion. So, increasing awareness and brand image could be huge for them, helping them acquire brand loyalty. Another opportunity would be to expand. Add more stores not just globally but...