Team 3 Rebecca Eggerman Alexander Johnson Miguel Lopez

Team 3 Rebecca Eggerman Alexander Johnson Miguel Lopez

Team 3 Rebecca Eggerman Alexander Johnson Miguel Lopez Hannah Stephens Carissa Tarnowski Company Background Founders: John Mackey and Renee Lawson Hardy and Greg Weller and Mark Skiles 1980 Safer Way Natural Foods and Clarksville Natural Grocery merged creating Whole Foods Market Merger established blue ocean

and now Whole foods is the iconic brand for natural foods and practices Grown to over 340 branches in the US, Canada, and the UK and is now a $11.7B company Mission Statement The motto highlights their mission: Whole foods: We obtain our products locally and from all over the world, often from small, uniquely dedicated food artisans. Whole people: We recruit

the best people we can to become part of our team. We empower them to make their own decisions, creating a respectful workplace where people are treated fairly and are highly motivated to succeed. Whole Planet: We recognize the connection between our lives, our communities and the environment Core Values Selling the highest quality

natural and organic products available Satisfying and delighting our customers Supporting Team Member happiness and excellence Creating wealth through profits and growth Caring about our communities and our environment Creating ongoing win-win partnerships with our suppliers Promoting the health of our stakeholders through

healthy eating education Competitive Strategy Analysis: Revenues 2008 $7,954 million 2009 $8.032 million 2010 $9,006 million 2011 $10,108 million

2012 $11,699 million Competitive Strategy Analysis: Product Differentiation Price Premium High Quality Harris Interactive Study 82% said prices impacted grocery shopping 72% will continue to buy natural and organic foods Corporate Strategy Analysis: Pricing Strategy Revamped

Value Offerings Expanding Market Base with Lower Prices The Whole Deal Virtual Value Tour Price Promotions Discounts Expansion Corporate Strategy Analysis:

Quality High Quality Strict Quality Standards Foods free of artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats Foods that are fresh wholesome, and safe to eat Seafood Highest farmed seafood standards in the industry First to offer Marine Stewardship Council certified seafood

Meat and Animal Welfare 5-Step Animal Welfare Rating Standards Financial Whole Foods 4% Krogers 1.5% SWOT Analysis Strengths Market Leader Growth Quality and Store

Customization No. 19 on Fortunes Worlds Most Admired Companies list Weaknesses Concentrated in US Relative Slow Growth Pricey Perception Limited number of suppliers

Opportunities Expansion Consumer Health Trends Increasing number of US organic farmers Threats Supermarkets introducing organic products Consumers downgrading Increasing food prices and inflation Porters Five Forces Potential Entrants

Low Suppliers Medium Buyers High Industry Competitors Medium Substitutes Medium Whole Foods Strategy: The Whole Foods Experience

Case Study Shopped at least twice a month Toronto WFM Customer Affluent Educated White Income Varied, but generally much higher than the urban average Customer Values Environmental

Sustainability Local or organic food Labor Justice Fair Trade Community Building Shopping at a local market to strengthen community relationships First Visit Experience I was amazed. I loved it at first sight. They say, can you fall in love at first sight? Yeah, you can!

The pleasures and the special role in their daily routines of the WFM shopping experience Outing, Vacation, or A retreat from the mundane world of work and family responsibility 10Xers What it is not Is not the Fastest companies Not the ones looking for the turbulent markets

What they are The ones that know when to be fast and when to be slow. They find what works and why Not the most innovative The most radical changes The stay consistent as possible to great as stable environment to grow The Blue Ocean Cirque du Soleil

Didnt compete with the big and established They expanded the boarders of the market They gleaned a new industry from the old one Fire Bullets then Cannonballs Why build new stores in new locations when somebody else has done it for you? Whole Foods acquired its main competitor They have an established customer

base They know the local market and community Whole Foods Markets Key Issues Three of their most obvious key issues in the media in 2013 consist of the following: The consumers want for Non-GMO labeled products

on all products that contain do not contain genetically modified organisms Whole Foods trying to expand into smaller areas with lower income populations to increase consumer base and have a larger number of store locations CEO John Mackeys strong, radical, libertarian views and push for more Conscious Capitalism which could be hurtful to the company

Options for Non-GMO labeling Whole Foods has the option to either commit to labeling all of their Non-GMO products, which they have stated will take up to 5 years to complete with much research and investment costs, to provide customer satisfaction.

Whole Foods has the option to opt out of labeling all their Non-GMO products in order to be able to spend more money on new store locations and not have to deal with the disparagements from those who oppose the movement. Options for Store Expansion: Goal 1,000 in US Whole Foods has the option to continue to expand into

smaller and lower income areas in order to reach their goals of eventually having 1,000 stores in the U.S. Whole Foods has the option to only locate their stores in their traditional wealthy, large income areas, which is where their business seems to thrive most. This will better ensure guaranteed success in new store locations. There could be a chance that this option

may not provide the company with being able to have 1,000 stores in the United States. Options for CEO John Mackeys Public Behavior John Mackey can continue to be outspoken on his views of politics and business that will most likely ensure the business of people who believe in the same views as he does.

John Mackey can make the choice to become more reserved on publically speaking about his political views, which may ensure to keep more of his customers happy and not cause consumers with different views to protest or boycott Whole Foods. Whole Foods Markets pledge to consumers When Whole Foods Market fails to

measure up to its stated Vision, as it inevitably will at times, we should not despair. Rather let us take up the challenge together to bring our reality closer to our vision. Industry Analysis: Business and Economic Characteristics Health conscious individuals Increasing popularity worldwide Rapidly growing industry Creation of Blue Ocean Competitor inspiration

Supply strain Industry Changes Consumer demand increase Supply shortage Government involvement WFM remaining profitable Innovative company Strategic adaptations Competitive Forces Rival digestion Acquiring various companies Increasing market share

Relationship maintenance Grape supplier in Chile Strategy innovation On the path to 10X Strong Competitors Traditional Grocers Walmart Low prices Similar products Krogers High quality products Competitive prices

Weak Competitors Organic/natural grocers Sprouts Farmers Market Privately owned Not a lot of expansion Natural Grocers Recently publically traded Bland atmosphere Regardless of competitive prices and quality Future Competitive Moves?

Build brand image Focus more on core competencies Increase advertising Consider Endorsements Extend relationships Expand into more countries Keys to Competitive Success Innovation Core Competencies Supplier Relationships Expansion

Further Industry Analysis Highly volatile and increasingly competitive market Many new entrants into the industry Volatile prices in costs of food Whole Foods is not a cost leader Key factors Strong growth strategy Commitment to quality of goods

Driving Forces for Change New Paradigm for customers in America New entrants into the marketplace Labeling laws and regulations Number of new entrants into the market Genetically modified products Number of customers Customers seeking diet foods New value on eating

healthier Additional labeling and regulations New FDA regulations and labeling for GMOs Foreign markets and expansion Competition Issues Lack of economies of scale Need for expansion in the UK and Canada Need for reduction in store space

Walmart and giants Global supply chains Competitive advantage Ambition of Whole Foods Push for differentiation and value Quality over cost Reduction in stores that it is expanding in to Growth wont save the company Use of lower ranged product line 365 organic Questions?

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