Submitted by: Submitted by blackjr72
Views: 2097
Words: 2817
Pages: 12
Category: Business and Industry
Date Submitted: 08/11/2010 12:57 PM
Whole Foods Market
Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market.
Since more and more families, are wanting to provide more nutritious meals, the need for organic food has drastically increased, Ask anyone, and they will suggest Whole Foods as a way to do this. Ordinary stores, such as Giant, Safeway, and Food Lion,- are trying to expand their inventory by adding more variety to their selection, this is a direct result of a demand of everyone wanting to eat healthier, however with Whole foods they have it all. In 2000, organic foods were sold in conventional US supermarkets, than nations national food stores. Consumers were beginning to worry about safety, purification, and pesticides to name a few. A lot of new mothers, would make their own food because of artificial flavorings, and chemically engineered foods and believed it was a more healthy way of feed their babies.
Evaluate the competitive environment of the firm: Apply Porter’s model and analyze each factor relative to the company.
Threats of new entrants, rivalry among competing firms, and threat of substitute products, bargaining power of buyers, and bargaining power of suppliers, are the 5 forces of competition models. New entrant threats are a major concern for the natural and organic food industry. If regular stores and supermarkets start picking up on organic food, the organic food industry will see a struggle. Take Walmart and Target for instance, if these stores were to sell organic foods, stores like Whole Food and Trader Joes, would definitely see a decline. Walmart is able to offer lower prices and is already a large retailer so it would have no problem stealing organic food consumers from Whole Foods. With the popularity of organic food rising, it is only a matter of time before neighborhood markets and common store retailers start stacking up on organic products. However it will still...