Whole Foods Case

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Case 2: Whole Foods Market 1. What are the chief elements of the strategy that Whole Foods Market is pursuing? Growth Strategy: Whole Foods has maintained a growth strategy using a combination of opening new stores and acquiring smaller chains that had good management and were in promising locations. Since the company has ran out of attractive acquisition candidates they are focusing on opening 10-15 bigger stores in metropolitan areas ranging from forty thousand to eighty thousand square feet. Their main acquisition was Wild Oats in 2007 for $700 million which gave them entry to five new states. It was part of the company’s strategy to relocate some of its smaller stores to larger areas which improved visibility and marketing. Store Location Strategy: Whole Foods preferred store locations in the upscale areas of urban metropolitan areas. Whole Foods had its own internally-developed model to analyze potential markets based on education levels, population density, and income. After selecting a target metropolitan area, the company’s site consultant did a complete site study and developed sales projections, possible sites had to pass EVA hurdles. Product Line Strategy: Since Whole Foods stores varied in sizes and had different demographics the product and brand selections varied from 20000 items to 50000 items depending on the store size. Whole Foods product line included natural, organic and gourmet food and nonfood items from categories like fresh produce, meat and poultry, fresh sea food, baked goods, prepared foods, frozen foods, beer and wines, coffees and teas, grocery, body care products natural and organic pet food, floral department and educational materials. Whole Foods Market sells foods that are high quality in terms of nutrition, freshness, appearance, and taste and that met strict standards. Whole Foods guaranteed 100 percent satisfaction on

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