Whole Foods SWOT Analysis
Whole Foods is a public one company retailing grocery and operating health food stores. The company was originated in 1980 and its founder is John Mackey. The company’s headquarters are situated in Austin, Texas, United States of America and is mainly focusing on the retails of organic and natural products.
Strengths
• The company has its presence in the biggest economies of Canada, United States and United Kingdom with 58,300 employees devoted for its successful operation.
• The company revenues have been rising by 20. 5 % for the last few years with its current revenue of $ 9.006 billion
• The company share in organic leading industries is certain to $4.7 billion.
• Best reputation in local markets especially for marketing the largest diversity of healthy foods and organic products.
• Before the arrival of whole foods there was no concept of vast health food stores with inexpensive and wide range of products.
• The company’s alliance with health insurance companies and other related health industries like fitness centers.
• The company is well renowned for its social responsibility besides its main business.
• The environmental protection agency of United States has given it third place at the list of its 25 green power partners.
• The website of the company is very well developed and is most often visited by their routine customers for tips, recipes, on shelve sale items and much more; best executing the concept of the company.
• The stores outlets are attractive place to the young shoppers that enhances the company’s brand image.
Weaknesses
•v The company organic product section operates at very high costs as government does not provide any subsidiary to the organic growers, supporting the natural growers to maximize the production.
• The organic food change has not developed fully to cope up with the demands of growing food demands around the world.
• The whole sale concept sometimes appears to be dramatic because the rates for these sales are sometimes higher than other retailers.
Opportunities
• Catering services and cooking classes along with recipe books offered seasonally at the stores.
• The response to the customer needs some amendments as to change their concept towards organic food that is nit expensive or unhealthy as compared to natural products.
• Local events to increase the positivity of the brand image to turn the possessive and conscious customers towards their outlets.
• Loyalty cards for the customers to increase their trends to shop at their markets through the provision of incentives.
Threats
• The products of the company are being copied by the other wholesalers in competition with it.
• Increase in competition with the rebranding companies that are trying to compete with established retailing chains.
• Tough market competitors like HEB Central Market, Publix and Wal-Mart.
• Government policies directly affect the retailing of organic foods.
• The United States economic situations desire more profits negating the organic products in favor of natural ones to gather more profits.
References
• How Boss’s Deeds Buff a Firm’s Reputation. (January 31, 2007). The Wall Street Journal.
• Renton, Alex (March 27, 2007). “Ripe target”. The Guardian (London).
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