Second, whether it can profit by selling healthier more natural fast food. Lastly whether it can effectively venture into global markets and challenge one of biggest worldwide fast food eateries, McDonalds. Chipotles vision is to "change the way people think about and eat fast food", by serving “food with integrity”. The following provides an industry examination and inside investigation of the organization before giving recommendations. External Analysis Industry rivalry: High According to the case Chipotles leading competitors are Taco bell, Moe’s southwest grill, Qdoba and smaller chains Baja fresh and California tortillas.
The growing trend of organic foods has continued to increase. Trends that can negative impact Whole Foods Market are “through a loss of sales, reduction in margin from competitive price changes, or greater operating cost such as marketing”. The major trend that affected Whole Foods Market was mainstream supermarkets, such as Safeway and Kroger, expanding its grocery selection to include organic products. Prior to the introduction of organic foods, it was rare to shop at a local Safeway or Kroger to purchase these items. In addition, there were some stores that own their own private label of organic products.
Key Issues Whole Foods SWOT analysis Strengths Weaknesses Opportunities Threats Huge selection/variety Price – up to 75% higher Expand private label selection lower prices for customers Conventional Supermarkets (Competition) Large, customized stores Promotional Offers – no coupons Advertise more, create coupons and promotions to get people in the store Bad Economy Experience in the Industry Advertising Budget very low Hype right now is to eat healthier and protect the environment Local Farmers’ Markets Key issues that were found during the analysis were that Whole Foods is a little pricy for their industry, and they really do not offer any incentives to their customers. On the good side they have experience in this type of industry and have a large variety of items in their stores. Define the Problem
Journal of Case Research in Business and Economics Whole Foods Market, Inc. James L. Harbin Texas A&M University-Texarkana Patricia Humphrey Texas A&M University-Texarkana Abstract This case explores the rise and expansion of Whole Foods Market, Inc. As the world’s leading natural and organic food supermarket, Whole Foods, faces major strategic issues in both its external and internal environment. These issues include the deterioration of the American economy, the uncertain future of the organic segment of the grocery industry, the increased competition of the major players in the food industry, the increased cost of food, the acquisition of Wild Oats and the Federal Trade Commission’s subsequent objection to that acquisition. Keywords: Whole Foods, John Mackey, entrepreneur, strategy, organic food, supermarket, acquisition, merger, Federal Trade Commission and Wild Oats Whole Foods Market, Inc., Page 1 Journal of Case Research in Business and Economics Introduction From the fairly humble beginning of being a one-store entrepreneur living on the third floor and taking baths in the dishwasher, John Mackey has seen his 1978 Safer Way grocery store grow into an $8 billion a year corporation. As of September 2008, Whole Foods had 264 stores in the United States, six in Canada, and five in the United Kingdom. There are few companies that attract the kind of following Whole Foods and its CEO/founder has both among its customers and the national media.
What resource allocation priorities are needed to best allow for organic growth? What strategic actions are necessary to better prepare the company for further consolidation in the retail grocery industry and processed foods industry? Should J. M. Smucker undertake restructuring to eliminate certain businesses? Should the company make additional acquisitions to expand its line of packaged foods? What types of food categories would offer attractive ﬁts with its current business lineup?
Porter five forces Whole Foods Inc: Whole Foods Market Inc operates within the industry for food and drug retailing. Food retailing is a large, intensely competitive industry. Their competitors include local, regional, national and large international supermarkets, natural food stores, warehouse membership clubs, small specialty stores and restaurants(Whole Foods Market 2011). We will limit the analysis to supermarkets that operate in the U.S market. Further we will limit the industry to Porters definition from 2008, that if the industry structure for different products share the same buyers,suppliers,barriers to entry and so forth they can be defined in the same industry.
The combined company would be the world's largest consumer goods company, displacing Unilever, the British-Dutch giant. The prospect makes some lament what they see as yet another nail driven into the coffin of anti-trust enforcement. To others, it means that the American food industry is finally recognizing that, to compete with foreign giants in global markets, it must be much more focused than it now is. But once the commotion has died down, will the merger make a difference to anyone other than Philip-Morris and Kraft shareholders? In the short term, probably not.
5. Use yield factors derived from butcher tests and cooking loss tests to determine correct purchase quantities. 6. List the advantages and disadvantages of using standardized yield figures versus in - house yield tests. In previous articles , we explained that all foodservice establishments have a sequence of operation consisting of purchasing, receiving, storing, issuing, producing, and selling and serving.
This strategy was deemed to be cannibalistic in the longer run since their stock prices and fair share of the market was already declining post 2007. The third approach was to aggressively accelerate the rollout of food content in stores and thus making its entry in the grocery business to drive the frequency of shopping trips. Since consumers shopped for groceries significantly more often than home and apparel goods, Target leadership felt the presence of grocery items could increase food traffic in to the store and thus further inducing them to buy non grocery items as well.
Historically, Starbucks has utilized the method that matches the risk and profit return associated with market capitalization. In this paper we look to examine Starbucks’ entry into 3 different countries and effect of cultural barriers on entering a new market. About Japan: It must be understood that at face value and cultural analysis, the decision to enter the Japanese market would be foolish. At the point of their entry, they faced an extremely compacted market and faced the steep barriers associated with the massive diversity between American Culture and basic tenets of Asian cultures. Then, when amplified by the unique cultural phenomena of the Japanese subset, it would seem foolish.