Whole Foods Market Essay

803 Words4 Pages
Whole Foods Market: 2010 How to Grow in an Increasingly Competitive Market? The central idea in this article meant to explain the success of Whole Foods’ competitive approach and dominating natural and organic food sales and establishing their brand image is that they locate their stores “ where 40% of residents have a college degree and in highly populated metropolitan areas… and reflective of a healthy lifestyle…” That mindset implies that the mere possession of a college degree assures job stability and more discretionary income, but as the writer of this article goes on to admit, “uncertainty in the operating economy,” and “natural foods are deemed expensive” are market forces that may hinder further growth for Whole Foods and are in fact outside of Whole Foods’ control. “The resulting recession has created more conservative and practical buying behavior. It will be difficult to estimate demand until the economy is on solid footing.” Competitive advantages attributed to Whole Foods listed in the article that I agree with are that they are “leveraged in size for better costs,” and offer a “vast product selection,” that competitors like Safeway, Trade Joe’s and Costco cannot seem to match, that they have “redesigned for prepared foods,” i.e.: hot deli selections that consumers can package themselves without waiting in lines. Once again, based on my visits to local Whole Foods are vast compared to Safeway or Costco, and tap into the local population of busy office workers. Threats to Whole Foods’ listed in the article that I disagree with are: “offerings may be less compared to large discount retailers who have greater purchasing power,” the prediction that “pricing wars” will ensue “with eroding profits in the industry.” Costco and Safeway et al may have greater purchasing power, but they simply lack the vast selection of choices and brands that

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