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Whole Sotre Essay

1406 words - 6 pages

WHOLE FOODS

Questions:

1. What about related products?

The products that offers Whole Foods are natural and organic food offering customers a wide variety of products. This means food that is free of growth hormones or antibiotics and food conforms to the standards as defined by the U.S Department of Agriculture in October 2002.
Product categories at Whole Foods include: produce, seafood, grocery, meat and poultry, bakery, prepared foods and Catering, Speciality( Beer, Wine and Cheese), Whole Body (nutritional suplements, vitamins, body care, and educational products such as books), floral, pet products and householdsd products.

2. What of the general environment ...view middle of the document...

The industry is charecterized by low margins and continous downward pressure on prices made evident by cupons, weekly specials, and rewards card. And a state of price competition.

4. Is this an attractive industry in which to compete (Porter)?

Threat of new entrants 

With the new preferences of the customers the supermarkets and small shop are introducing new products, and these can affects the costs of the products because probably supermarkets can have slow prices, this means that WFM need change his strategic in this price competition.

Substitutive products

Probably there aren´t any substitutive for natural and organic products because nothing is more healthier than natural products, only maybe is someone invent a natural products with more vitamins or something similar but is very difficult find substitutive products so this is an advantage to WFM

Competition

Unless WFM was one of the first shop in US there are a lot new competitors like supermarkets and shops that offers natural and organic products. Furthermore there are others shops similar to WFM like Trader Joe´s or Wild Oats .

Bargaining power of suppliers

With the increasing demand of natural and organic products the power of the suppliers could be more significance than now because they can increase the price of the products.

Bargaining power of buyers

Unless consumers of natural organic products want the best quality and they aren´t worried about prices. With the news supermarkets and shops with less prices they have more possibility to decide where they want buy their products. So the power of the buyers is very big because they have more possibilities to buy and more information about the products that each grocery, supermarket and shop sell

5. What factors are critical to the success of WFM?

The more critical factors to the succes of WFM are possible scarces resources: prime locations and the supply of organic foods.
Whole Foods is particular when deciding the new location for a new shop, because the majority customers are well-educated, they earn a high salary. But there are a limited number of places with this conditions. Furthermore with the crisis the people expends less money in the products that they buy.

The other factor is that only 3 percent of U.S landfarm usage is for organic products and with the increment of the demand from the supermarkets, could exceed the limited supply. And the quality natural and organic products can affect the sales and cost of goods because the strict government requirements must be satisfied. And with the supermarkets and shops that sell natural and organic products but with less quality than WFM maybe the supliers don´t do their products with the quality that WFM need for their products and the sales can be less if the consumers don´t are satisfied with the quality.

6. What are WFM’s tangible and intangible resources?

Tangible resources

The more important tangible resource...

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