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 U.S.A. It’s products include foods without aritificial preservatives, sweetners, colors, flavors and fats. The firm has its headquarters Austin, Texas and currently employes more than 95,000 people.
Whole Foods Market Inc. Revenue :US $15.72 billion – FY ending March 2016
Competitive Analysis of Whole Foods Market Inc.
|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
|1. Lower priced health foods|
2. International expansion
3. Horizontal expansion
|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.
1) Healthy and strong financials: Whole Foods Market has a healthy balance sheet with strong financials. Its FY16 revenues stood at $15.72 billion; up 2.14% from FY15. Its FY16 operating profit stood at $ 5.41 billion.
2) Strong brand presence: Whole Foods Market has become a very strong brand for retailing of organic products. After the acquisition of Wild Oats its market share has increased with only few players to compete with. The retail chain has strong presence in US, Canada and UK where demand for its products is high.
3) Good quality and standard of products: Whole foods market provides very good quality and healthy products. It’s products doesn’t contain any aritificial preservatives, sweetners, colors, flavors and fats.
4) High demand of organic products: There is a very high demand for organic and healthy products in the countries where it’s retail chain are present. Its products are available at higher prices and customers with higher income who are willing to pay premium prices for healthy foods find them attractive.
5) Robust supply chain: Whole Foods Market has a robust supply chain across its distribution centres and retail stores. The products have low shelve lifes and a proactive supply chain helps it to cater to their needs.
1) Highly priced products: Whole Foods Market has its products available at high prices. This eliminates the customers from middle level income groups and below. They are also known as ‘whole paycheck’ as some of the products are priced higher than other grocery stores.
2) No subsidies for organic farming: The subsidies are not provided to organic farming. Therefore the products can be grown more cheaply by other companies by not using organic farming techniques.
3) HIgh Dependence on North American Markets: Whole Foods Market is largely dependant on North America for its business with 97% of its FY16 revenues being generated from the geography. Expandig to any other area requires it to have local suppliers and efficient supply chain.
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) Etailing: Whole Foods Market can also venture into etailing 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.
1) Economic downturn in American Markets: Due to undiversified risk into other regions of the world, Whole Food Market becomes prone to economic downturn in this region.
2) Expansion by existing supermarkets: The existing supermarkets like Wal-Mart, HEB, Wegman’s etc are increasing their product line to similar products as of Whole Food Market. This might spur a competition by these players in organic food market. There might be a low cost competition from these players and introduction of private label brands.
3) Government rules and regulations: Organic food production is highly prone to any change in government policies in favourable and unfavourable manner.
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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 23 Feb, 2020].
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