Whole Foods Competitive Forces and SWOT

The analysis of the weaknesses and threats are based on an analysis of the companies' filings with the Securities and Exchange Commission (SEC), specifically their annual reports, 10Qs and periodic filings of business activity.

Table 2: While Foods SWOT Analysis

Strengths:

Continued revenue growth despite a challenging economy

Well-executed growth strategy domestically in the U.S. And globally

Strong growth in brand equity and value as a trusted advisor in organic foods

Strength in acquiring and integrating companies into their overall business model

Weaknesses:

Slow Global Growth

Global Strategies Slow To React to Market Conditions

Difficulty managing retail costs globally

Lagging the industry in overall performance on a sales and profit-per-employee basis

Opportunities:

Continued growth in demand for organic products

Growth prospects look very positive in the UK

Continued acceptance of private label organic products

Celebrity chefs and celebrities increasingly endorsing organic food

Higher levels of concern and focus on health among millions of Americans, Canadian and British

Threats:

Quality problems in the supply chain

Very aggressive global competition

Economic conditions

Supply chain potentially could be purchased in part by mass merchandisers

SWOT Discussion

Despite a global economic recession, the company continues to grow and attract new customers, mainly because the value people are placing on being healthy has never been greater. Driven by the high costs of healthcare and the belief on the part of many consumers that the dollars they spend on groceries ought to go for the highest quality and most nutritious available, Whole Foods continues to experience revenue growth. The strengths of aligning their brand with a very high quality, healthy image of food has served the company well and will continue to attract new customers over time. This aspect of their strengths needs to be looked at from the standpoint of potentially acquiring key suppliers for the most common products, produce, fish and meats they sell. The company needs to grow more aggressively in the UK, where there is the potential for significant growth. In addition, the focus on how to create more efficient global operations needs to be looked at, as this area could be easily turned into strength for the company over time. There is also the need to align the brand with celebrity chefs and celebrities who have chosen to pursue organic foods with many becoming vegetarians.This shift in the broader culture presents Whole Foods with an exceptional growth opportunity and chance to be the trusted advisor to this and future generations of consumers (MacDonald, Whellams, 2007). Overall, the company must also concentrate on supply chain management, execution and focus on keeping their value proposition highly differentiated and unique. If the company can accomplish all of these strategies in a coordinated and synchronized approach, it will continue to be successful. The growth in Europe is only beginning and getting all of these elements together into a concerted strategy will further differentiate and strengthen the company in those markets as well. The need for continually creating trust with loyal and new customers must pervade all strategies, as the greatest growth will occur when trust is earned and kept.

References

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