Whole Foods Case Study

...

-

What are WFM's tangible and intangible resources?

As for company intangible resource, we can name specific formula to determine where to open their stores. Formula uses metrics such as income levels, education or population density. Another intangible resource is huge know-how of employees . There is for example even in-store chefs to help with recipes or wine tastings. Another intangible resource are “Take Action food centres” where customers can find information about legislation and environmental factors which affect their food.

As for company tangible resources we can name seafood facilities, farms, bakeries and of course the Whole Foods supermarkets.

-

Whole Foods Market SWOT analyses

STRENGTS

WEAKNESES

- Big quality of food

- Huge resources

- Large network of stores

- Only premium expensive food

- Almost all markets are only in USA so there are sensitive to their economic situation and there is no “safety net” stores

OPPORTUNITIES

THREATS

- Overall Growth: because of increase of urban single people and Baby Boomer generations kids leaving a nest of their parents

- More women working means less homemade quality food and people can buy more WFM prepared food

- Funding non-profit organizations to increase customers awareness about healthy lifestyle

- Other competitors are trying to get to organic and healthy food market

- All-in shops with organic food section

-

How should WFM deal with the anticipated shortages of natural and organic products in the future?

WFM can diversity a portfolio or try to push on government to decrease level of limitations about crop fields. This should lead to increase number of crop fields in USA.

-

How will mainstream acceptance of natural and organic products affect WFM?

The natural food will be available on places which are not just about health. If demand is high enough it can be everywhere. That has direct effect on sales of Whole Foods because people wouldn’t have to go there if is something for example near or even cheaper with same quality from local farmers.

Source

Harasta, P, Hoffman, A. N. (2006). Whole Foods Markets: Will There Be Enough Organic Food to Satisfy Demand?. Thomson.