Whole foods net revenue has been increasing over the years. In 2007, Whole foods revenue is of 6.6 billion. In 2011, it increased to 10.1 billion. And it estimates 20 billion in 2016 as it represents 11.22% of annual year over year growth. Whole foods have double digit revenue growth for 25 years and the company recorded 7 953 million during the financial year of September 2008 which is an increase of 20.7% over 2007.
Commitment:
Whole foods have a commitment to sell high quality of natural and organic products. So, customers are attracted to their products for their quality. They have a good image in the public. They provide good customer service. And their reputation of selling all the organic, locally grown, healthy foods in the world wide makes them more attractive to their customers.
WEAKNESSES
Weak International Operations:
Most of the Whole food stores are in United States comparing to Canada and United Kingdom. They are roughly single digit number stores in UK and Canada out of 362 stores. As large majority of the stores located in United States, if any economic downfall will affect the business.
Pricing:
One of the Whole food’s weakness is pricing. They are also known as Whole Pay check because some of their products are very high priced comparing to other grocery stores.
Product recalls affect brand image:
Recalling the recurrent products will affect the brand image of Whole foods. In past few years, there are many cases of recalling the products they were selling. They recalled products owing to contamination and it resulted in low customer loyalty and brand. So, recalling the products will cause negative effects.
Rental Expenses:
Whole food’s rental expenses are high and it affects the business. It can include ...
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... may not want to spend too much on products other than veggies and fruits. It should start a rewards program for regular customers that may help sales more.
As any industry, the store faces tough competition from similar setting stores like Kroger’s, Trader Joes, HEB. Any changes to organic foods regulations may increase customer spending which is a threat to the company. The company may also be investing more than it should when it purchases stores in loss and rebrands them as Whole Foods Market.
There is always room for improvement so here are some recommendations for the company. One of them is to have a reward program for the regular customers that will help boost sales. Another is to increase private labels to attract more people who are in the middle class household. The company can also work on increasing brand awareness and its marketing strategy.
The potential for growth was the reason for expansion into Canada and the United Kingdom. European’s tend to be more in tune with organic food and healthy eating, furthermore making this a good move for Whole Foods. The Kensington location in the United Kington is a high end area, and
The threat of new entry for the industry is low, as considered by high costs and intense price competition, which make the industry’s profit margins very low. In the United States the market is concentrated, where the 50 top firms, including: Wal-mart, Kroger, Safeway
This is due to the symbiotic relationship Walmart has to its consumers, they are able to offer lower prices in more locations and consumers desire affordability and proximity. Despite the obvious domination of the economy by Walmart, less conventional producers and consumers are present and on the rise. Local rather than global and small rather than large, the increase of these less conventional manners of production can be seen in the increase abundance of farmers’ markets, Community Supported Agriculture (CSA), and community gardens. Farmers’ markets are common areas where farmers meet on a regular basis and sell various fresh produce directly to the consumers. The number of farmer’s markets between 1994 and 2014 has increased from around 2,000 to 8,000 (ers.usda,gov). Farmer’s offer an aesthetic that Walmart cannot provide—the opportunity to be personable. The consumer is able to see who grew the food, ask how it was grown, and will not be dazzled by fancy packaging or
Perhaps if the company had more time to meet its goal, or if they choose to re-examine their position again at a later date, it would then be a good idea to attempt to enter the supermarket channel; however, with only one year to increase revenues, it is safer to stay in the natural foods channel.
Some strengths that Panera Bread has over it’s competition is that is provides the high and good quality ingredients to its customers. It also gives these customers a difference dining experience compared to McDonalds and Five Guys just to name two competitors. They have catering, fresh baked goods and quickly prepared foods. They also have a great brand name over the years. They have been able to continue on growing financially over the years. Studies also show that majority of customers are very satisfied with Panera Bread.
Whole foods sells a wide range of healthy foods and this specialized grocery chain has about 422 stores in the U.S. and United Kingdom (Whole Foods IP. L.P., n.d.). While the corporate owner's may claim to be the leading seller in
Oliver’s opened its second store in April of 2000 in Santa Rosa, CA fashioning it after Woodlands Market, another Organic Health food store. Unfortunately, in the early 2000’s with the increase of discount superstores, club stores, dollar stores and drugstores, there was a decline in the traditional retailers’ market share from 82.3 percent down to 69.2 percent. Increases in giant retailers will be one of Oliver’s biggest competitive pressur...
Whole Foods Market Inc. is a service provider in the grocery industry, which report in the US economy under the North American Industry Classification System NAICS 42441, General-line groceries merchants wholesalers, by the time the company started operations in 1980 supermarkets had a history of 51 years. Supermarkets unlike other type of retail is considered truly American in origin, self service grocery stores are traced back to 1912 in Memphis Tennessee, and it was in 1930 when Michael Cullen opened the first store of the King Kullen supermarket chain, it was around that time after the big depression that the independent stores which at that time only offered dry groceries started to transition to the supermarket model, including groceries, produce, and
...ious. Stability is another factor that could make Whole Foods an attractive career. They have been consistent in everything they have down and show a dedicated to the communities around them. Not many companies have the same track record and this proves that Whole Foods is in it not only for themselves.
Whole Foods Market, which is in the Grocery Store and Health Food Store industry, is one of America’s most prominent organic grocery store on the market. The supermarket chain has established a competitive advantage amongst other grocery stores, as it assures consumers that all foods are free of preservative, additive, and pesticides. The grocery store has gained such a profitable following, that it Amazon acquired it in August 2017, boosting Whole Foods Market’s digital and physical competitive advantage. In fact, most researchers have concluded that such an acquisition may eliminate any opportunity for other grocery store chains to compete against Whole Foods Market (Formichelli, 2017). Whole Foods Market’s key to success
Strengths: low price, strong brand name, excellent merchandise, exceptional employees, huge membership base, economies of scale, efficient distribution and operation.
Store Development and Growth Strategy: Prior to 2002, Whole Foods’ strategy for expansion meant the acquisition of smaller, similar chains. The obstacle here was that acquisitions proved to be very limiting in square footage as well as location. Since 2002, Whole Foods has sought to develop and build individual stores to avoid these limitations, allowing the company to operate stores as large as 50,000 square feet.
The competitive pressures that Oliver’s Market must be prepared to deal with are the pressure associated with the market maneuvering and jockeying for buyer patronage that goes on among rival sellers in the industry and the pressure associated with the threat of new entrants into the market. They must be prepared to face with the rival stores, Trader Joe’s, Costco, and Whole Foods who had recently entered in the sales territory with brand new stores and so far Wal-Mart and Target also had announced plans to develop regional supercenter, that is, large –format discount center into their territory.
Is high when buyers have many choices of whom to buy from and low when the choices are few. By offering your customers high quality fresh food, they will come to your café instead of your competitors. One way to reduce buyer power is to implement Loyalty Programs. A Loyalty Program that can be implemented in the Broadway Café is to have a customer purchase card. Every time a customer makes a purchase, this card gets "stamped" and after 7 purchases of a sandwich, their 8th one is free or 50% off.
Kek Sayang should keep producing quality and unique products which will help to set them apart from the competitors. The owner has to be creative and keep up with the newest trend in order to move further in business. Besides that, it is about time for Kek Sayang to expand its wing to another states such as Penang. Being highly active in social media can help Kek Sayang to be closer to consumers and the website should be updated more often. Delivery service will also attract more customers. As for staff, Kek Sayang should consider sending new staff or recruits to training. Its marketing strategy should be improved and more bulk advertising and promotions should also be made. Due to the increase of health-concerned people nowadays, Kek Sayang should go for an attempt to increase the range of low fat and low sugar products that will satisfy the demands of those who are watching what they consume while still want to enjoy some sweetness. The attempt to go green should be made step by step as it going to cost a lot. It should be started with something small first such as replacing plastic