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Whole Foods Market Inc. SWOT & PESTLE Analysis

ID : 52144653| Sep 2020

COMPANY PROFILE -Whole Foods Market Inc.

Business Sector :Retail (Food)

Operating Geography :North America, United States, Global

About Whole Foods Market Inc. :

Whole Foods Market is a supermarket chain based in the U.S.A and founded in 1980. The company initially formed as a result of a merger between the founding store SaferWay and Clarksville Natural Grocery.. The company headquarters are located in Austin, Texas. In 2017, Whole Foods was acquired by Amazon.com for $13.7 billion. Its product focus is mainly on organic perishable and prepared products that include foods without artificial preservatives, sweeteners, colors, flavors and fats. The brand offers products that are non-GMO, vegan, and gluten-free. The company has also been certified by the USDA as an Organic grocer.
The company has over 500 stores located all over North America and the United Kingdom as per 2019 records. Some of the major acquisitions over the years include Wellspring Grocery, Bread and Circus, Mrs. Gooch’s, Fresh Fields, Bread of Life, Amrion, Merchant of Vino and Nature’s Heartland, Food For Thought, Allegro Coffee, Wild Oats Markets and Fresh & Wild. The company employs around 91,000 people as per 2020 records.
The mission statement of the company reads, “Whole Foods Market is a dynamic leader in the quality food business. We are a mission-driven company that aims to set the standards of excellence for food retailers. We are building a business in which high standards permeate all aspects of our company.” The company motto reads, “Whole Foods, Whole People, Whole Planet”. Whole Foods USP or unique selling proposition lies in being the world’s biggest grocery chain.

Whole Foods Market Inc. Revenue :

US $15.72 billion – FY ending March 2016

Competitive Analysis of Whole Foods Market Inc.

SWOT
PESTLE
The SWOT analysis for Whole Foods Market is presented below:
Strengths
Weaknesses
1. Healthy and strong financials
2. Strong brand presence and market share
3. Good quality and standard of products
4. High demand for organic products
5. Robust supply chain
1. Highly priced products
2. No subsidies for organic farming
3. High dependence upon North American markets
Opportunities
Threats
1. Lower priced health foods
2. International expansion
3. Horizontal expansion
4. Etailing
1. Economic downturn in North American markets
2. Expansion by existing players
3. Government rules and regulations
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Detailed SWOT Analysis of Whole Foods Market Inc.

 

Strength

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Weakness

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Opportunity

1. Lower priced health foods: They launched stores named ‘365’ by Whole Foods Market, which aim at providing similar product line of foods at lower price which may help them to tap medium income groups as well.

2. International Expansion: Whole Foods Market has the opportunity to expand to developed markets of Europe, Middle East and Asia. The target segment of the firm is present in high numbers in these areas and might find these products attractive.

3. Horizontal Expansion: Whole Foods Market has strong opportunity for including new products in their portfolio. Various fresh fruits, vegetables and foods can also be included to be added in the cart.

4. E-tailing: Whole Foods Market can also venture into e-tailing of their products as they already have procurement part of supply chain in operations. By expanding their supply chain, they can provide their products at doorsteps of customers.

Threat

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References used in Whole Foods Market Inc. Analysis Report

1. Whole Foods Market Annual report 2018 - https://wholefoods.coop/cms/wp-content/uploads/2018/09/Annual-Report-2018-WEB.pdf

2. Whole Foods Market Annual report 2017 - https://wholefoods.coop/cms/wp-content/uploads/2017/09/Annual-Report-2017.pdf

3. Whole Foods Market Company Profile - https://www.dnb.com/business-directory/company-profiles.whole_foods_market_inc.ff718a8b8e3d9770f807c86694e6e2f7.html

4. Whole Foods Market company website - https://eu.wholefoodsmarket.com/?destination=www.wholefoodsmarket.com%2F

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Whole Foods Market Inc. SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). Whole Foods Market Inc. SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/whole-foods-market-inc/ [Accessed 24 Nov, 2020].

In-text: (SWOT & PESTLE.com, 2020)

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