Introduction
and Background
The case introduces to
the whole foods market it is the company which was introduces by the 25 year
old John Mackey with some of his friends, they were the drop out from the
university and eager to do something but could not choose the path to do, as
they have thought of and plan of they have initially started venture and their
partnership grew up from two of the partners they started small natural food
store with just small amount of 45000$
collecting it from their some friends and their relatives. But starting a thing
is never too easy though the start point is the hardest to enter after entering
it to the market the real struggles their comes up so does to the
entrepreneurs, they have had hard time paying the rent for the apartment so
they were even out from the apartment where they used to store their products
as the concept was new the product was not that attractive to the customers
through it had some of the segmentation of the customers. Falling rising and
going with the life cycle of their product after their hardest time of 2 years
they have come up with the Whole food market. In 1978 with partnership with
some groceries store, it was by then a big grocery store with 19 employee and
10500 sq ft of space.
While operating they
had to face natural disaster of flood, it was so worst that it has washed all
their major equipments and their inventory it has led a big loss to the store
as it was not insured as they were not prepared for the natural disaster and the
loss has to be covered by all of the partners which was quite hard at that
time.
When mistakes happen we
must agree and rise with it, same happens to the company whole foods again was
signed after 28 days of destruction now the partners were not only their
partners but the neighbors, creditors and some of the vendors were even
included in their teams as this shows the faith and the loyalty to their job,
it proves that they already gained some popularity and trust from the
customers.
As they rose from the
mistake now the time was to grow their store the company now started to groom
from one to three one in Austin and another in Houston. They even introduce
some of the natural product to their customers under their main brand whole
foods market they also have started other ventures except Texas, oh wow to the
fortune of the company it has even listed to the 100 fortune best companies to
work from 1998 not only this Mr. john got recognition the best CEO of the
worlds and in the recent years they were announced as the 100 best corporate
citizens magazine. John was the youngest entrepreneur to the world.
SWOT analysis of Whole foods Market
Strength
·
Variations in the
product they almost got 30000 products on their store so we must say product differentiation
is their strength
·
Recognition as the
organic food maker and seller
·
Some of the awards has
let them win the trust from the customers
·
It was even one of the
25 green power planters in U.S.
Weakness
·
As the products are
all organic but the price is higher than other non organic products so price sensitive
customers will not be choosing their products.
·
They have variation in
the product but they don’t have any competitive products to the market they
just have their own segment of market and they are happy with it.
Opportunities
·
As people now days
wanted to eat organize the demand are higher for those products
·
Health conscious
people are increasing day by day
·
international market
is open for them if they wanted to enter into the global market
·
Increasing population
with increasing and changing mentality of products are their opportunities
Threats
·
Global competition can
give them a huge threat
·
Vulnerable market and environment
·
The markets profitable
and the chances of entering new competitors are high
·
Innovation and change
in the product are also threat for the company.
Strategies
Past, Present and Future
While going through the
case we came to know that they have used various strategies on the various
stages of their lives, as for the marketing they have chose Social media
marketing which is growing higher and higher, as they are no 1 in quality they
have gone through one strategy of quality and choosing one segment of market
for the people who chose quality they are the choice those customers do not
care about the money they are paying far as the quality is their key concern.
As on another stage of
their lives they have chosen go green movement which has led to the evolution
and promotion to their products by renewals sources of energy. As the employee
are the one who took care of the office and work they have a very democratic
leadership style at their office which led them do whatever the best possible
thing is not only this they have a very good performance appraisal way so that
their employee could be motivated and aspire towards the accomplishment of
their goal.
So we can see the
company is in the differentiation strategy as they have more than 3000 products
on their pocket. With some new campaign and addressing to the health conscious
customers they have led the market and they have won the trust and love of the
customers which makes them loyal to their products.
The company has the aim
of prosperity and growth inculpate with the service to the customers with the
quality they are giving to the customers.
Conclusion
and Recommendations
As the company is
really doing good in U.S. but only to the limited states so they need to
broaden up their heights and come up in the market to the big states like
Washington and other snot only this I think they have to enter to the global
market as the Europe can also be their big market to grow and the risk will
even diversify and it will be easier to stating as they have Already proven to
be the best which can be their competitive advantage to gain from the market. CEO
of the company has learn from their mistakes they have realized a lot of things
while operating so the mistakes like not covering insurance again and not being
secured from another place could be the loss to the company, so in this case
diversifying their risk investing in something different and minimizing their
risk is the responsibility of the company apart from differentiation it should
also be diversification of risk.
As they are in the
growth stage I think they must use all their pros and all their marketing
techniques all the papers, magazines and everything so that competitors would
fear entering to the market looking at the portfolio of the Whole foods. They
should incorporate corporate responsibility in their mission as they already
are giving quality and natural products customers will be more delighted from
that campaign.
Hence, company has made
them superior from their quality, reliability, and stability and the
performance of the company is way better than their other neck to neck
competition so retain, regain and groom the market and the growth of the
company they must increase the height and the level of their operations through
other proactive actions.
Bibliography
adhikari, D. r. (2009). Strategic Implementation.
kathmandu: Buddha Publication.
Robinson Jr., R. B., & Pearce II , J. A. (2011). Strategic
management Formulation, Implementation and Control-12th edition. The
McGraw Hill Publisher.
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