Whole Foods Market
Discuss the trends in the retailing of organic foods and the impact of these trends on Whole Foods Market.
A growing appetite for Organic foods have been observed as a recent trend in the markets of United States in specific and the rest of the global market in general. This has been observed due to the change in the thinking process of the people in terms of remaining healthy and staying fit. The retailing of organic foods as traditional suppliers of organic foods faced competition from companies new to this sector (Plunkett, 2007). The organic foods are now not only sold in the natural product stores such as Whole Foods and food cooperatives but ...view middle of the document...
Advertisement including promotional schemes has also been introduced with due effect. These good and attractive schemes consisted of discounts, coupons and such other methods so as to enhance the sales potential and to make customer’s experience good growth and productive. Technology like printed bills and out gate pass has also proven influential to the retailing of Organic Foods.
The organization name Whole Foods Market has greatly influenced and became a trendsetter in the organic foods industry. The Whole Foods Markets has achieved enhanced demand by setting up beautiful displays for specific types of organic foods separately at dissimilar racks. This market has adopted novel highly developed packaging to keep the key elements together of cleanliness and experience of the Organic Foods. This organization has proved that it deals in qualitative products along with offering them at lower prices in comparison to other rivalries.
Retailing in thus organic food industry is experiencing a great and good growth and it is determined with the help of growth in number of supermarkets, natural foods and grocery stores as well (Baourakis, 2004). The growth and hike in demand has also satisfied corporations into businesses of organic foods retailing that makes situation difficult for organization. But still Whole Foods Market has been able to attain competitive advantage over others because of its enriched values and strategies. The consumers of the Whole Foods are high on shopping at the natural and gourmet – food purveyor, which has been lowering prices to encourage customer to think of it as more cost competitive with other retailers.
Evaluate the competitive environment of the firm: Apply Porter’s model and analyze each factor relative to the company.
The Whole Foods Company is confronting a great competition with a large number of factors. One of the possible factor is related to Porter’s Force Model is threat of entrants. The reason for the growing competition in this industry is the good growth it in the last few years where the consumers have turned conscious as to what they consume. The growth in competitors depicts that market is very much aggressive and there lies a little possibility for experiencing growth and development as revenue could get to lower levels along with profits of the company (Whole Foods Market, 2011).
The second important factor is strength level that exist firms. There are a large number of local and foreign players which plays the role of competitor to Whole Foods Market. This grown and increased demand in organic foods along with utilization of the new trends and attractiveness in the retailing of organic food industry have contributed to tremendous amount of competition amongst the varied market players in this organic food industry (Hitt, Ireland & Hoskisson, 2009). The big marketers are good enough to sell their products on large number of resources and competence being possessed by them. Foods...