Competitive Advantage Of Whole Foods - 1921 Words

Competitive Advantage(s) Whole Foods strong brand identity is likely its greatest source of competitive advantage. The company has successfully established itself as the leader in the organic and natural food segment, and has invested heavily in store quality and customer service. These factors differentiate it from other grocers and have fostered a relatively loyal customer base that is assured of WFM’s high quality products and services. Maintaining this advantage will be essential in preserving the franchise’s competitiveness despite the increase of other companies offering natural and organic products. Central Problem(s) The company is under immense pressure to match the rapid growth that newer, lower-cost entrants into the organic†¦show more content†¦It can also be the case where your goal is a combination of all the goals that I have previously mentioned, and I believe that this is the case here. Although the company is making large profits now, its sales have been declining for six straight quarters leading to an inevitable decrease in profits. It is important to think of why this is happening. I believe that the company is not focused on what the consumers actually want, but rather focused on what the company â€Å"thinks† that consumers want or on what it â€Å"thinks† the consumers should want. Whole Foods follows the ideology of not simply selling the product but also selling the customer service and experience that comes with it. However, most shoppers are more shoppers savvy and pursue desirable prices rather than the shopping experience. This has caused a huge issue for Whole Foods leading to a decline in sales. Founder of Whole Foods, Jack Mackey even states, â€Å"we’re changing the [grocery-shopping] experience so that people enjoy it. It’s a richer, [more fun], more enjoyable experience. People don’t shop our stores because we have low prices.† On the contrary, it seems that the majority of customers don’t go to seek the experience but rather the prices. To truly know whether this is the case or not or to know wha t must be done to address this, I recommend that WFM to initiate research that focuses on what consumers need, how they value those needs, and how WFM can fulfill those needs, this in turn wouldShow MoreRelatedLeading Whole Foods With a Competitive Advantage2480 Words   |  10 PagesIntroduction To most consumers Whole Foods is known as a chain grocery store specializing in organic and natural foods. Some may go as far as say the name is synonymous with quality. This comparison is the result of Whole Foods’ marketing their brand successfully to consumers demanding their specialized foods. 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The firm enjoys strong brand name recognition in the natural foods niche market that is growing significantly. The company uses SIC Code 5411 in the grocery stores. According to Whole Foods Company, natural foods are those foods that are processed at a tiny extent or foods thatRead MoreWhole Foods Value Chain1282 Words   |  6 PagesReferences†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦..Page 5 Introduction Whole Foods started in 1980 when it’s CEO, John Mackey merged his store, SaferWay, with a competitor, Clarksville Natural Grocery. Since then, Whole Foods has expanded to 275 locations in North America and United Kingdom with 47,000 employees, making it the world’s leading supermarket retailer of natural and organic products (Harbin and Humphrey, 2013). 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