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According to the Whole Foods, Inc. Annual 10k Report (2009) Whole Foods Market is the world͛s leading natural and
organic foods supermarket and America͛s first national ͞Certified Organic͟ grocer. Our Company mission is to promote
the vitality and well-being of all individuals by supplying the highest quality, most wholesome foods available. Since the
purity of our food and the health of our bodies are directly related to the purity and health of our environment, our core
mission is devoted to the promotion of organically grown foods, food safety concerns, and the sustainability of our
entire ecosystem. We opened our first store in Austin, Texas in 1980 and completed our initial public offering in January
1992. As of September 27, 2009, we operated 284 stores: 273 stores in 38 U.S. states and the District of Columbia; six
stores in Canada; and five stores in the United Kingdom.

Our sales have grown rapidly through new store openings, acquisitions and comparable store sales growth, from
approximately $92 million in fiscal year 1991, to approximately $8.0 billion in fiscal year 2009, acompounded annual
growth rate of approximately 28%. We are a Fortune 500 company, ranking number 324 on the 2009 list. Our 284 stores
average approximately 37,000 square feet in size, approximately $29 million in annual sales, and are approximately nine
years old on average. We aspire to become an international brand synonymous with not just natural and organic foods,
but also with being the best food retailer in every community in which we are located. We believe our heavy emphasis
on perishables and locally grown products, along with our unparalleled customer service, is helping us reach that goal,
differentiating our stores from other supermarkets and enabling us to attract a broad base of loyal customers.

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There are several trends in the retailing of organic foods market that impacted them market itself and Whole
Foods. They are listed below as follows:

R? According to a leading trade publication for the industry, sales of natural products across all retail and
direct-to-consumer channels grew to approximately $68 billion in 2008, a 10% increase over the prior
year.
R? Congress passed the Organic foods production act in 1990.
R? USDA established official standards for organically grown products in the U.S. overhauling and regulating
43 state and other federal agencies for the labeling of organically grown products.
›? Organic products that were processed had to be processed with 95% organic products.
›? iroducts made with organic ingredients had to have at least 70% organic ingredients TO BE
WORDED ORGANIC, but could not display USDA certification.
›? Other products with less than 70% ingredients COULD NOT WORD organic on package.
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R? 2003 all organic processors, exporters, importers, shippers and merchants had to document and verify
for that they were certified to grow, process or handle organic products carrying USDA͛s Organic Seal.
R? 31 % of Organic food sales were sold by mainstream supermarkets
R? 24% through leading natural Food Stores (Whole Foods, Wild Oats and Trader Joe͛s)
R? 22% through independent small store chains
R? Was available for purchase at 75% of all retail grocery stores in the U.S. by 2008.
R? Among the top processors of Organic foods in the market are:
R? Kraft
R? General Mills
R? Groupe Damone (parent company for Dannon Yogurt)
R? Dean Foods
R? Kellogs
R? einz
R? ain Celestial Group
R? Campbell Soup
R? Starbnucks
R? Coca Cola
R? Del monte
R? unt
R? Tyson Foods

According to Thompson (2009) in a study prepared by the USDA, said that in yr. 2000 more organic foods were sold
in conventional supermarkets than in over 14,500 natural food stores. By 2002, most supermarkets expanded their
selections of National and organic food products which ranged from:

-? Wine - Cereal - iasta - Cheese


-? Yogurts - vinegars -iotato chips - Beef
-? Chicken - Canned fruit - Canned Vegetables

Among the most popular items were fresh produce which included:

-? Lettuces - Tomatoes - Carrots -Broccoli


-? Califlower - Apples - Celery - Cucumbers

Meat, dairy and Bread were the fastest growing organic categories sold. Whole foods did their own survey of
consumer preferences and 75% of the participants responded that the Number one barrier to their purchase of organic
products was the high prices charged by most retailers. 46.1% said that they didn͛t consume it because it wasn͛t
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available to them where they lived and another 36.7% said that they were loyal to non organic foods. Among the
participants that purchased organic foods on a regular basis 75% said that they purchase mostly Fruits and vegetables;
32% purchased Dairy beverages; 22.2% purchased Bead & Baked goods; 24% purchased dairy items; 22.2% purchased
packaged goods (Soup or iasta); 22.2% purchased meat; 22.1% Snack Foods; 16.6% purchased Frozen Foods 12.2
purchased irepared or Ready to Eat Meals and 3.2 % purchased Baby Food.

Currently the market for organic products in this country is 20% and growing. Depite the fierce competition the
price or organic products has remained high due to rising consumer demand. Once a niche market, the several factors in
the market have forced Organic products to become one of the fastest growing segments of U.S. Foods sales. The
factors driving the increase in demand for organic products are listed below:

R? ealthy eating patterns


R? Consumer concerns over purity and having pesticides in their foods
R? Wellness and ealth conscienceness
R? Soil and Water enthusiast growing beliefs that organic farming has positive environmental effects.

Although many large supermarkets chains stocked a wide selection of organic and natural food items, only two
chains in the U.S., arris Teeter in the Southeast and Whole Foods Market had launched their own private label brands

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Whole foods which ranked 24th in the market , had total revenues in 2006 were 5.6% only a fraction of some of its
largest competitors which included Walmart, Kroger, Costco which sales were $209.9, 66.1 and 59.0 respectfully and
held 9.4%, 7.8 and 4.3% of the total retail grocery sales in the market. But if ranked in the Natural and Organic Foods
market segment, Whole Foods is seen as the category leader for organic and natural foods because they offered the
largest selection of products in this category, as most of its competitors efforts were either futile or helpful to Whole
Foods, because they exposed customers to organic and natural foods. Whole Foods mission and objective was to
improve the health of the planet and help create new customers for Whole Foods by creating a gateway experience and
WF knew that as they grew at a modest pace that those same customers would likely become their customers when
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ever they moved in close proximity to those customers. Whole foods core growth strategy is to expand via combination
of opening its own new stores and acquiring small, owner managed chains that had capable personnel and were located
in desirable markets. Which had proven to be a difficult objective at first, since many of the owner operated retailers of
natural and organic foods were one store operations and larger store in the 5,000 to 20,000 square foot range was
impossible to find.

Whole Foods changed their strategy to a more measurable goal of driving growth by opening 10 to 15 larger stores
in major metropolitan areas which they planned to implement between 2002 to 2006 were proven to be much viable
strategy as indicated in exhibit 5 which shows that they grew from 135 stores to about 276 stores in 2008 including the
addition of Wild Oaks one their biggest competitors for $565 million and $135 million in debt and an additional $166
million in cash after selling 35 of the newly acquired stores. Whole Foods next biggest competitors in the natural and
organic foods segment of food retailing were fresh Market, Trader Joe͛s, Sunflower Farmer͛s Markets, Fresh & Easy
Neighborhood markets and Independent natural ealth Food Grocers. irovided below is a chart outlining strenghths of
above competitors:

Fresh foods market may be a formidable opponent in the market earning over $350 million in 2007, but they are
still young and assuming that they lack the financial resources and retail merchandising skill to be a significant threat to
whole Foods right now but are currently seeking funding to go public soon . Fresh Markets size and geographical
locations are similar to Whole Foods customer Base near educated and affluent residents. Their product line and
offering are similar with Fresh Market having only a modestly innovative or creative layout differentiate themselves
natural food stores and traditional supermarkets with superlative service; attractive fresh produce display and ͞upscale
boutique͟ items such as pick & pack spices, gourmet coffees, appealing meats and seafood selections, chocolates, NY
cheese cake , & Bagels and other special condiments, wine beer and gift itemsͶbut had very high labor cost,
sometimes more than average supermarket because of the benefits package they received was fairly decent and part
time employees received benefits including medical, dental and life insurance directly after hire. Fresh market͛s
customer service techniques need improvement in customer engagement, but could be improved through events for
customers such as cooking classes and sponsored fund raising events which they have annually for the children͛s
Diabetes foundation; Fresh Foods stores are approximately 18,000 to 22,000 square feet and fit the profile Whole Foods
mentioned earlier for acquisition, partnership or out right purchase. Whole Foods needs to communicate with them to
see if they will be willing to collaborate and work in alliance for healthy and environmental causes.
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Exhibit A ʹ competitive comparison chart

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56  7 58 9( 1  
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"    $6.5 284 45 ʹ 60 36/2 54 Over 30,000 items iublic company since
items sold inkling 500 dailyFresh 1992
iroduce seasonal,exotic Meat and Growth/ Market
poultry 150 Fresh Seafood leadership strategy
items.Endless baked goods Team leadership
irepared foods;40, .Frozen foods, Restaurants
juices; Dried & fresh fruits and Cafes
spices;1,200 Beers and wine Ownership of
brands; Coffees and tea; body care Distribution centers
and nutrition, pet foods. Ownership of three
Grocery and household products seafood processing
organic sheets and linen;A floral centers
depart. Supply chain
irivate labels/store brand items; management program
Educational products; seminars on Import supporting
cooking and nutrition. underdeveloped areas
and countries
Community ealth Well
being

 "/  .350 77 18 ʹ 22 17 7 Meats, seafood, sandwiches, 300 Open air old World
fresh produce;40 coffees; a Europeon market
selection of dairy ; bulk products; design, old fashion
cheeses;deli items;wine & beer; sentiment
floral and gift items and bare line up
of grocery items
:  .48% 14,000 1.1 -6 n/a Narro to mod erately broad Small open format
;#
"  
 ")*  5 7  10 Stock about 3,500 items
;"6 " 
 
#( > n/a .3 %? @   Stock about 5,000 items " #  
26#
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A 1  n/a 315 Na 22 n/a Over 2,000 unique items in under Treasure hunt
their produt label 10-15 new, seasonal or
one time buy items
=  . 7,500 Sells vitamins and supplements to
 Whole Food
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º? Source information from case s: Whole foods Market in 2008: Vision, Core Values and Strategy, pp. c-1-c-31;?
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The entering of Tesco subsidiary Fresh and Easy Neighborhood in organic grocery and retails market may
oversaturate market with just like me store presence hampering whole Foods profitability and slow down whole Foods
growth in the Organic and Natural Foods market. They have a large distribution center and could serve some of whole
Foods in their geographic region for future expansion needs. Whole Foods may need to create alliances with Tesco
health grocers to find out what their goals are in the market if they are similar and products are healthy and pure
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products they may be open to a merger to gain market share in US market. A large company like Tesco could aid Whole
Foods Internationally in achieving its humanitarian outreach. If no alliances or communications with company to
reduce can be formed with this company they could be a real headache in the market if they evolve and find a better
way to delight customers with their differentiated offering melding quality, low price and convenience.

Sunflower with their warehouse style bulking and discounting of large lots indicates that want to penetrate to the
heart of the organic and naturals market cutting off any major contenders such as whole Foods and deflating the hipe of
getting healthy foods without glitts and glomour through their state in mission saying they keep their overhead
low....just regular people looking for a great deal SunFlower͛s mission statement : We will always offer the best-quality
food at the lowest prices in town. ͞Better-than-supermarket quality at better-than-supermarket prices͟ is our motto.~
We keep our overhead low. No fancy light fixtures or high rent. No corporate headquarters͙just regular people, like
you, looking for the best deals we can find.~ We buy big. We source directly, we pay our vendors quickly and we buy
almost everything by the pallet or truckload. That buying power means big savings for you! Their tagline is one of
mockery & poking fun from Mark Gilliand, partner and former founder of Wild Oaks at Whole Foods͛...igh irices by
giving reason to their low price versus that of Sunflower in saying : ͞Serious Food....Silly prices.͟ Is engaging whole
Foods head on with a limited selection of items from the Organic and natural market including minimally processed
items, cereals, seafood, nutrition bars, trail mixes, health drinks , produce, meats, salads, cheese, bread, coffee, nuts,
candy, nuts, soaps, shampoo, natural remedies and offer double AD days where they could get twice the items on
Wednesday. Whole Foods needs to intensify their efforts in supply chain management through acquisition and alliance
with major processors of organic foods to tie up distributors and control the supply available to vendors who are not
concerned with customer service and increase marketing of private store brands to increase customer loyalty in the
segment. Communication with individual health and organic grocers might prove effective to see if alliances cn be
established to keep this competitor from gaining to much ground in the organic market.

Whole Foods core values address differentiation as their core or primary competitive stengths and strategy
which accounted for much of their success in the organic and natural foods market. Some of the major areas where
they use differentiation are in their choice of products, location, customer intimacy/ store experience, and in their
employees. Whole Food sells the highest quality Natural and organic products available. They were able to differentiate
on their product line and brand selection because their stores were different sizes unlike a Walmart or Costco whom
stores averaged 132,000 to 141,000 and sell a wider selection of products, categories outside of the organics and
natural segment forming a natural barrier to entry. Whole foods located many of their stores located in upscale areas
near highly affluent or wealthy customers in urban metropolitan centers. Some stores were frequently found in
premier real estate sites or high traffic shopping locations. Some stores free standing; in shopping strips and others
located in mixed use project locations.
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Whole foods developed and used its own unique model to analyze potential markets and to target its customers
whom were mostly affluent and educated people whom were willing to pay a bit more for healthier food. Whole food
used a combination based on education levels, population density and income during a certain drive times at each store
location to project sites before a store was opened after passing certain financial hurdles. Whole Foods currently owns
over 274 stores in 36 states and abroad; and sources most of its organic and natural foods from individual or subsidized
farmers, and seafood fisheries with the exception of about 24% of its dry grocery and frozen food products fare
purchased from United National Foods, the company͛s biggest food supplier; two wholly owned seafood subsidiaries
and Nine distribution centers; nine regional bake houses and five commissary kitchens supplied area stores with
prepared foods. A central roasting facility supplied stores with the company͛s Alllegro brand of coffee and two produce
procurement centers which are in charge of procurement and distribution of all the produce Whole Foods sells. In order
to ensure the best quality in their products and future qualities of organic and natural foods whole Foods built unique
relationships and programs supporting farmer͛s in disadvantaged or low income or wage areas or countries committing
to import over 50 % of its imported products from developing countries through its whole Trade program which
committed the company to paying small scale producers a price for their products that more than covered the
producer͛s cost; so that they could invest in family͛s and worker͛s cost to educate themselves and have sufficient pay to
help support a better life.

Although many Whole food stores varied in size, their biggest was about 99,800 square feet with their average store
footprint ranging from 45,000 to 60,000 square feet, Catered to many different types of clientele. Their product lines
like Costco was limited and included only about 30,000 natural, organic, gourmet food products and nonfood items:

R? Fresh iroduce ʹ fruits and vegetables including seasonal, exotic and specialty products like cactus pears,
cippolini onions and japanese eggplant.
R? Meat and poultry ʹ natural and organic meat house-made sausage, turkey and chicken products from animal
raised on wholesome grains, pasturelands and well water (without the use of hormones or steroids).
R? Fresh Seafood -- a selection of fresh fish; shrimp oyster; clams; mussels; homemade marinades; exotic items like
octopus, sushi and black tip shark. Most of their seafood came from two wholly owned subsidiaries iigeon Cove
seafood processing facility located on the East coast in Massachusetts and Select fish processing facility on the
West coast which supplied only a portion of their seafood. As a part of their strategy to provide only the
freshest foods managers at individual stores were given discretionary authority to purchase from local organic
farmers and well managed seafood fisheries.
R? A large selection of baked goodsͶcakes, pies, breads and cookies and etc.
R? irepared foods --- soups, canned and packaged
R? Fine quality cheeses up to 40 varieties
R? Frozen foods, juices, yogurts and dairy products, etc.
R? Wide variety of dried, fresh fruits and spices
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R? Beers and wines, some with up to 1,200 varieties of domestic and foreign brands
R? Coffees and teas in store roasting, grinding stations; premium and exotic
R? A body care and nutrition departmentͶorganic, natural, homeopathic remedies without any animal testing
R? Natural and organic pet foods
R? Grocery and household products
R? A floral department with large variety sophisticated in and outdoor plants
R? A 365 Everyday value line and 365 organic everyday Value line of private label products that were less expensive
than other store brands.
R? Educational productsͶalternative health care and books related to cookery, healing, diets and lifestyles. Some
stores even feature seminars on cooking and nutrition.

Whole foods who depends largely on word of mouth and testimonial style or referral advertising; spends less 0.5 of
its revenues on Advertising. Corporate budgets which are largely decentralized and allocates most of their marketing
budgets toward regional programs and marketing efforts for individual store and national brand awareness.

Another element and important key to Whole Foods customer Intimacy strategy is its differentiated store layout
and designs and their skills in merchandising, which are quoted by Thompson (2009) as a prime factor in its success in
luring shoppers back time and again. It uses a differentiated style of merchandising that can be compared to an upscale
mix of Starbucks with arris Teeter, with valet parking. In 2008, Whole Foods had over 274 store locations in 36 states
and are described below:

R? Its flagship store in Austin Texas, 78,000sq feet, considered a number one tourist attraction and destination,
features an intimate village style layout; six mini restaurants within the store; a raw food and juice bar; more
than 600 varieties of cheese and 40 varieties of olives; a selection of 1,800 wines; a candy Island with
handmade lollipops and popcorn balls; a hot nut bar with an in-house nut roaster; a world foods section; a
walk-in beer cooler with 800 selections; 14 pastry chefs making a variety of items; a natural home section with
organic cotton apparel and household linens; and extensive meat department with inj-house smoker and 50
oven ready items prepared by in-house chefs; and a theater like seafood department with more than 150 fresh
seafood items and on the spot shucking cooking, smoking, slicing and frying to order.
R? In their Columbus Circle store in Manhattan had a 248 seat café͛ where shoppers could enjoy restaurant
quality prepared foods while relaxing in a comfortable community setting ; a jamba juice smoothie station that
served freshly blended to order fruit smoothies and juices; a full service Sushi Bar by Genjie Express complete
with stools where customers could sit and enjoy fresh cut Sushi wrapped in organic sea weed; a walk-in
greenhouse showcasing fresh cut and exotic flowers; a wine shop with over 700 varieties of wine from both
large and small vineyards and family estates; a chocolate enrobing station wher a customer could get anything
coated in chocolate.
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R? In a two story iasadena, California Store (one their largest stores west of Rocky Mountains) they featured a
wine and tapas lounge; a seafood and Italian trattoria; 1,200 selections of wine; fresh donuts made hourly; a
6,000 square foot produce department that featured more than 500 items daily; and free wireless internet.
R? Internationally, in a three store 99,800 square foot store in London had 55 in store chefs; 13 dining venues
including a tapas bar, champagne and oyster bar; a pub, and sushi and dim sum eatery) that accommodated
over 350 diners; a self service bulk foods center with 100 selections; and a 12 meter display of fresh seafood
selections ( many of selections were hook and line caught off the shores of the United Kingdom).

In creating the environment which many customers of Whole foods is used too, Whole foods wanted to create a
strong corporate culture that contributed toward an environment motivated employees to work in teams to carry out
their mission. So they use a team approach to store operations which in my opinion is the real the driving mechanism
for their total customer experience. Depending on the store size and traffic volume, Whole Foods employs any where
from 85 to 600 members, which are organized into as many as 13 teams, each with One team leader working with one
or two associate team leaders as well as with all departmental team leaders to operate the store as effectively and
profitably as possible . Each Team within a store is responsible for a different product category or different aspect of
store operations such as customer service, prepared foods, produce and customer checkout stations. Also another key
to Whole Foods use of this approach is their level of decentralization where these team leaders made decision on
merchandising and operating decisions but team leaders also screened candidates for jobs on their teams, but two
thirds of the team had to approve a new hire--- and that approval came only after a thirty day trial so every on the team
could get know if each candidate fit with the job and within the team.

Whole Foods empowers these teams to make decisions at the store level pertaining to merchandising,
departmental operations and efforts to please customers. Whole Foods uses this model based on their commitment
and belief that that their long term success depended upon having happy customers. They also believed that
empowering these tem leaders and employees they are further inspired and motivated and help to harness the
collective energy of the team to operate effectively and efficiently ---thus enabling them to manage their store better
than their rivals. In addition , to the empowerment to make decisions, many team members and employees felt good
about their jobs and had a greater sense of purpose and were motivated through their sense of contributing towards
the company͛s vision of providing shoppers with better diets , eating habits and overall well being of society at large.

What also made this type of management approach effective was the compensation of each team leader and
member who were rewarded in a sense of shared fate. Team leaders received salary plus bonus based on the stores
economic value added (EVA) contribution; and were also eligible to receive stock options Leaders and members alike
received member selected benefits packages complete with health plan which the company paid 100% of the premium
and personal wellness accounts which members used to pay for higher deductibles or continue to roll over for future
expenses, paid time off, 20% discounts on all whole foods purchases, eye & dental care plans, life insurance and
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disability plans and emergency assistance plans. Team members were paid similarly to leader bonuses through a gain
sharing plan that linked each member of the teams by uniting the self interest of the team members with those of share
holders. The gainsharing plan which rewarded each member according to store͛s operating profit ( Store sales less Cost
of goods sold less operating expenses) some distributions could add as much as 5 to 7 percent of their wages. Members
received a grant of stock options based on their performance, stock purchase plan through payroll and 401K plan.

Furthermore, employees were so happy with the way Whole Foods compensated them that turned away from all
unions, although there were several attempts to unionize members. The company was also was also picked for Fortune
100 Best companies to work for List over 11 times. One of 14 companies to make the list every year since its inception.
Fortune in scoring the survey, allowed two thirds of the weight were placed on 400 randomly selected employees of the
company and one third of the evaluation based on demographic makeup, pay, benefits and culture.

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   6

In 2008, sales dropped below 10.91 percent with the newly acquired Wild Oaks whose sales only rose
about 0.8 percent versus 8.2 in 2007. Analyst say that this was because of the timing of the acquisition during
an economic downturn in the U.S. Other immediate threats to the company in 2008, stemming from the FTC
reopening its administrative challenge of the Whole Foods vs Wild Oaks which Whole Foods contested.

The entering of Tesco subsidiary Fresh and Easy Neighborhood in grocery and naturals market may
oversaturate market and slow down whole Foods growth in the Organic and Natural Foods market. Whole
Foods may need to create alliances with Individual health grocers offering assistance to ensure that there is a
strong market for healthy and pure products and these other smaller units won͛t be gobbled up and dispursed
by tooming competition from discount giants trying to control retail groceries with unhealthy substitutes.,

Whole foods will need to spend more in advertising to create health awareness and educate consumers
on the consequences of eating environmentally unsafe foods. Maybe they can fund a reality show or a ealthy
Foods Show on ealth or Cooking Channel promoting their brands,, missions and community and international
food Improvement advocacy.
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R? 2007 Annual Report 10k form indicates that the company grew 7.1 percent in store revenues and achieved an
average of 34.8 Gross margin. Store contribution or sales per store minus cost of goods sold minus operating
expenses equaled an average of 8.9% per store.
R? Can sell stock on Nasdaq exchanges to raise capitol for growth and expansion efforts
R? Merchandising and Layout styles that is extremely difficult to duplicate
›? Creates Disneyland style shopping experience.
›? Restaurants and other Dining, Wine Tasting and Value added eating experiences.
›? International Foods & Spices sections
›? Raw, Kosher, dried, pick and pack Deli Bars
›? Extensive baked goods and chocolating station 
R? Over 30,000 varieties of Organic and Natural Food items 
R? Ownership of nine distribution centers.
R? Ownership of Nine regional bake houses
R? Ownership of five regional commissaries.
R? Ownership of two produce procurement centers which facilitated procurement and distribution of all produce. 
R? Ownership of three seafood processing plants in key geographic locations
R? Strong relationship with suppliers and and community
›? Local producer loan program granting low interest loans of $1k to $100k to farmers and producers of
organic products that met their very strict standards.
›? iaying a higher premium to local and international farmers and producers of quality products by their
standards.
›? Who trade irogram where they committed to have more than 50 percent of of its products imported
from developing nations that met their standards and qualifications. They feature label on over 400 of
their whole Foods products and donate !% of sales of these items to Whole ilanet.
›? Whole ilanet a benevolent non profit organization charged with combating poverty and promoting self
sufficiency in third world countries that supplied Whole Foods with some of its products it sold.
›? Donating 5% of after tax profits to educational and nonprofit organizations. Donated over $15 million
in 2007.
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R? Stewarded many Green Environmental in their stores and facilities through their Green Mission Task Force
including:
›? Using paper bags made from 100% recycled paper and sold stlylish long lasting canvas bags made from
recycled plastic bottles.
›? Converted vehicles in transportation fleets to biodiesel fuel
›? Company purchased renewable energy credits for all their stores to offset 100% of all electricity used
›? Created non profit Animal compassion Foundation in 2005 to help producers adobt and improve
practices for raising farm animals naturally and humanely.

R? Employee empowerment through Team Management and Employee Compensation & Retention irograms.

  

R? Relationship with FTC over acquisition of Wild Oats


R? igh Debt of $700 million
R? Underfunded advertising and marketing programs
R? Vitamins and Supplements purchased from outside supplier
R? No alliances or ties with any of

 # 

R? Expanding their customer base and creating Brand Loyalty through internet such as web based based stores and
health Information and environmental Blogs , and Social Networking through Facebook LinkedIn and Twitter..
R? iartnering with Largest Supplier of Organic and Natural foods in U.S.
R? Start a Organic and Natural Foods RSVi membership charging $10 and offering members 20 percent discounts
on all their purchases from whole Food or bulk discounts from fish, baked subsidies sending them a weekly,
monthly E-newsletter filled with coupons, information on health and wellness and news on Whole ilanet
activities.
R? Form alliances with individual grocers offering growth assistance through partnering with them to achieve
economies of scale and better product offerings for their customers.
R? Expand market to where lower income families can become knowledge about healthy foods; form alliances with
local & State social services and ealth agencies providing discounts for Food Stamp recipients and through
company health and wellness programs
R? Create own vitamin and supplements or create alliance with larger environmentally concerned giant to create
awareness health conscienceness.
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R? Seek alliances with top food processors such as Kellogs, Green Giant, iepsi Cola to create a natural Brand
Organic Beverage.
R? Market Seafood to other supermarkets i.e, Walmart, Costco in bulk and under Whole Foods Brand to expand
brand awareness. (Walmart sells Boston Market prepared meals).
R? Seek merger with Fresh Foods market to create sustained existence and economies of scale in the Organic and
Naturals market.
R? Seek alliances with Celebrity, Diet health and Well Being and other Green ieace organizations that champion
and endorse the Whole Foods mission to improve Food Quality around the world.

" 

R? Oversaturation of the market or compettion with grocer giants i.e, Walmart under emphasis of selling organic
and natural foods over their everyday low prices. They have been in market longer and have more resources to
commit to marketing and etc.
R? irice war with larger competitors undermining quality of true organic and naturally grown animal , seafood
products by introducing or marketing technological/ genetically based substitutes into market that can be
purchased at fraction of price.
R? Economy economic conditions and employment rates lay-0ff and etc. Majority in market cannot afford to buy
R? Changes in the availability of quality natural and organic products could impact business
R? Future economic factors could cause impairment of goodwill
R? . The Company͛s business could be severely impacted by a widespread regional, national or global health
epidemic.

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R? Whole Food has many programs which provide sustainability to their business efforts. Some the areas where
they have stewarded change and good practices are as follows:
›? Agricultural programs supporting organic farmers, growers and the environment through their
commitment to sustainable agriculture.
R? Continue to delight, satisfy & surprise customer with hard to find organic and natural items
R? Merchandising and Layout styles that is extremely difficult to duplicate
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›? Creates inviting ͞Disneyland like͟ store shopping environments that are fun and reflect he communities
they serve. 
›? Restaurants and other Dining Venues, Wine Tasting and Value Added eating experiences
›? International Foods & Spices sections
›? Extensive prepared foods
›? Self Serve Raw, Kosher, Dried, iick/iack & Deli Bars
›? Extensive baked goods and chocolating station 
R? iartnering with Largest Supplier of Organic and Natural foods in U.S.
R? Start a Organic and Natural Foods RSVi membership charging $10 and offering members 20 percent discounts
on all their purchases from whole Food or bulk discounts from fish, baked subsidies sending them a weekly,
monthly E-newsletter filled with coupons, information on health and wellness and news on Whole ilanet
activities.
R? Form alliances with individual grocers offering growth assistance through partnering with them to achieve
economies of scale and sustainable product offerings for their customers.
R? Supporting fishing practices that ensure the ecological health of the Ocean and the abundance of Marine life.
R? iromoting and selling the products of well managed fisheries.
R? iartnering with groups who encourage responsible practices and provide the public with accurate
R? Market Seafood from well managed fisheries to other supermarkets i.e, Walmart, Costco in bulk and under
Whole Foods Brand to expand brand awareness. (Walmart sells Boston Market prepared meals).
R? Seek merger with Fresh Foods market to create sustained existence and economies of scale in the Organic and
Naturals market.
R? Seek alliances with celebrity, Diet health and well being and other Green ieace organizations that champion
and endorse the Whole Foods mission to improve Food Quality around the world.
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*+# #

 Whole foods has a good competitive position in the organic and naturals market, acompounded annual growth
rate of approximately 28%. From analysis of their case information, information in corporate within their annual 10k
report they are objectives are perfectly aligned and moving them in the direction they Aspire to become an
international brand synonymous with not just natural and organic foods, but also with being the best food retailer in
every community in which they are located and beyond . Though their heavy emphasis on perishables and locally grown
products, along with our unparalleled customer service, is helping us reach that goal, differentiating our stores from
other supermarkets and enabling us to attract a broad base of loyal customers they have also attracted some formidable
opponents in the market which may pose as barriers or helpful stepping stones toward reaching their goals. In addition
to competitive forces looming, Whole Foods is also faced with several threats dampening their profitability including
leftover perishable goods, high debt and leasehold agreements which is causing them a little difficulty, but nothing that
they could not abound from if they make a few changes in their business strategy which might prove to be effective in
helping them to stay ahead of the environment forces which are impeding them. Below I have listed several
recommendations that with careful alignment and timing along with normal plans might improve Whole Foods
profitability and serve as a barrier to impending competition that threatens to impede their position in the market.

R? iartnering with Largest Supplier of Organic and Natural foods in U.S to slow other competition and stop any
price competition by controlling the sources of organic and naturals this would allow whole food to reduce the
bargaining power of customers and other offering substitutes in the market..
R? Start an Organic and Natural Foods RSVi members organization charging $10 to $25 fund charitable
contributions. Offering members 20 percent discounts on all their purchases from whole Food or the ability to
bulk order at discounted rates on Seafood, Baked goods or catered meals for large events ( all prepared fresh
from bake houses, commissary͛s) and placing them on a list to receive a weekly, monthly E-newsletter filled
with coupons, information on health and wellness and news on Whole ilanet activities.
R? Form alliances with individual grocers offering growth assistance through partnering with them to achieve
economies of scale and sustainable product offerings for their customers.
R? Supporting fishing practices that ensure the ecological health of the Ocean and the abundance of Marine life.
R? iromoting and selling the products of well managed fisheries and iartnering with groups who encourage
responsible practices and provide the public with accurate information to help avoid any world shortage due to
plaques or other uncontrollable environmental outbreak.
R? Market Seafood from well managed fisheries to other supermarkets i.e, Walmart, Costco in bulk and under
Whole Foods Brand to expand brand awareness, converting competition to (Walmart sells Boston Market
prepared meals) cooperative selling , decreasing distribution cost and increasing profits in private and Whole
Brands of ealthy Food and organics.
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    c        .B
R? Seek merger, acquisition or purchase of Fresh Foods market to create sustained existence and economies of
scale in the Organic and Naturals market.
R? Seek alliances with celebrities, diet, health and well being organizations and other Green ieace organizations
that champion and endorse the Whole Foods mission fostering improvement of Food Quality around the world.
R? Encourage teams by offering additional incentive for cost or losses in perishables department through careful
age management for timely processing of goods in prepared goods, in pet products.
R? Expanding their customer base and creating Brand Loyalty through internet such as web based based stores and
webcast on health Information and environmental issues such as cooking, wine tasting, ealthy Food Blogs
promoting healthy eating habit , and Social Networking through Facebook LinkedIn and Twitter.
R? Expand customer loyalty by working with school dietians offering to setup healthy or organic and prepared food
stations to help reduce labor cost and foster healthy foods in local secondary and college and Universities.
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4.1 Reducing the Bargaining Power of 4.2 Reducing the Bargaining Power of
Suppliers? Customers?
· Partnering · Partnering

· Supply chain management · Supply chain management

· Supply chain training · Increase loyalty

· Increase dependency · Increase incentives and value added

· Build knowledge of supplier costs and · Move purchase decision away from
methods price

· Take over a supplier · Cut put powerful intermediaries (go


directly to customer)

4.3 Reducing the Treat of New Entrants? 4.4 Reducing the Threat of Substitutes?
· Increase minimum efficient scales of · Legal actions
operations
· Increase switching costs
· Create a marketing / brand image
(loyalty as a barrier) · Alliances

· Patents, protection of intellectual · Customer surveys to learn about their


property preferences

· Alliances with linked products / · Enter substitute market and influence


services from within

· Tie up with suppliers · Accentuate differences (real or


perceived)
· Tie up with distributors

· Retaliation tactics

4.5 Reducing the Competitive Rivalry


between Existing Players?
· Avoid price competition

· Differentiate your product

· Buy out competition

· Reduce industry over-capacity

· Focus on different segments

· Communicate with competitors