Threat from Substitute Products Rivalry among the existing players. Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing the present competition. Managers at Whole Foods Market, Inc. Whole Foods Market, Inc.
According to the five force model, the five competitive forces determine industry profitability: To begin with, the bargaining power of buyers is weak because consumers in the organic industry are not looking for cheap prices by rather high quality food.
Whole Foods Market has loyal customers because of the quality of their products. The company differentiates from their competitors because of their wide variety of food they offer. Ultimately consumers have little buying power when it comes to the specific pricing of products but they do have the influence to continue or discontinue a product.
On the other hand, the bargaining of suppliers, deal with increasing price and reducing the quality of their products. The organic industry is growing each year, and so are the suppliers and as a result, the suppliers bargaining power have increased.
Whole Foods now has a variety of suppliers they can choose from. Threats of new entrants are always a major concern in any corporation. The biggest entrant threat that Whole Foods faces are large supermarkets entering the organic industry.
For example, if Walmart starts to sale a variety of organic products, Whole Foods will see a decline in their sales. Walmart is known for their low prices and are located all over the United States which makes it easy for Walmart to be able to steal consumers from Whole Foods.
Currently, supermarkets only have a limited selection of organic products so Whole Foods still has an advantage. The threat of substitution products is not something of importance in the organic industry.
Rivalry among existing firms is common in the organic industry. The competitors range from convenience stores, local farmers, natural food store and even internet grocers.
Whole Foods has been trying to gain as much of their competitors as possible by merging with the competition. The company has been ranked among the most socially responsible business due to the way they operate their business nationwide.
Another way the company differentiates from their competitors is by being is very selective with their products and only offering the highest quality to their customers.
To begin with, Whole Foods Market does not sale cloned or offspring animals like other competitors. They guaranteed one hundred percent satisfaction on all items. They also have an outstanding customer service throughout their whole corporation.
The data analyst evaluates the cost and pricing of their products. IRMA stands for Inventory replenishment merchandising application.
Inventory is done manually by handguns, each department has a purchaser and a seller. The great advantage of this technology is the superior quality of assistance it provides.
In a few seconds, employees are able to tell their customers what are the product's details, such as weight, price and availability, adding a big value to their business.
It extracts information from Irma and employees are able to group, calculate, sort and filter reports. Ever since the creation of the first store, Whole Foods market has been devoted to provide the best customer service possible.
Now that the company has become a large corporation with stores all over the country, the same principles remain untouched.
When it comes to interacting with the customers. WFM uses 5 main tools which are listed below:Competitive Forces and SWOT Analysis: Whole Foods Market Peter Smtih Dr.
Roy BUS, Strayer University October 23, Competitive Forces and SWOT analysis: Whole Foods Market 1. Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market.
There is such an increased demand for organic products and there is only limited supply. Organic food is in short supply because organic food only accounts for roughly three percent of U.S.
farmland usage, according to the article. This could mean that Whole Foods biggest threat is their own niche market. Whole Foods Market’s Five Forces analysis (based on Porter’s model) shows that the firm must deal with strong influences of external factors in its industry environment.
(Photo: Public Domain) Whole Foods Market responds to the five forces of external factors in the grocery and health food store industries.
Retailing - Company Profile, SWOT and Financial Analysis: Whole Foods Market, Inc.
- Canadean's "Whole Foods Market, Inc.: Retailing - Company Profile, SWOT and Financial Analysis" contains in depth information and data about the company and its operations. By Whole Foods Market had opened its th store. In they have opened stores in Canada, United States and the United Kingdom.
Today Whole Food Market is the world’s leader in natural and organic foods, with more than stores in North America and the United Kingdom and is currently employing over 62, employers. Saturated organic food market Threats Porter's Five Forces The Risk of Entry by Potential Competitors Lots of competition Whole Foods is appealing to consumers through; Low pricing, especially on some of their brand products.