Whole Foods Market Environmental Analysis

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(i) Environmental Analysis – External Opportunities and Threats

The demographic, economic and the socio-cultural segments would be the most relevant segments to Whole Foods Market. These segments have a direct impact on the profitability, sustainability and survivability of Whole Foods Market, and the organic food industry. The relevance of the demographic segment stems from the fact that the age structure, income distribution and population size are important factors which will influence the demand for organic products. The economic segment is relevant, as an affluent population will continue to drive and sustain demand for organic products. The socio-cultural segment is another relevant segment, where attitudes about quality of life, workforce diversity and concerns about the environment will cause a shift in diet and lifestyle preferences.

This section explains the conditions in the organic food industry that will Whole Foods with opportunities. The aging Baby Boomer generation has resulted in an increased population of people that are more informed, health-conscious and willing to spend more on healthy natural foods. These people with higher disposable income will be the main drivers for the demand of organic foods. America in general is also growing in affluence, providing Whole Foods with a larger target market. Together with the fact that Americans spend a considerable amount of their expenditure on food, organic foods have become affordable to most Americans. Urban singles with higher spending power are also set to drive and sustain demand for organic foods.

Changing consumers’ perceptions have also provided Whole Foods with immense opportunities. Consumers today perceive imported, exotic and organic foods as higher q...

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...s to better establish itself in the organic foods industry.

Continue and expand its corporate social responsibility activities

Its reputation has been Whole Foods Market’s most valuable capability and will continue to be the key to its success. As mentioned into the case, Wal-mart’s foray into sustainable fishing and its introduction of environmental friendly practices have been met with doubts and criticisms. Whole Foods Market however, has an excellent track record that is tested and proven. In fact, Whole Foods should assume the leading role in promoting environmentally sustainable practices by taking on a more aggressive approach with regards to its sustainable practices. This will serve as an excellent form of marketing and will allow Whole Foods to respond effectively to Wal-mart’s entry into the industry by gaining a huge and sustainable competitive edge.

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