Whole Foods Market - Case Study

Whole Foods Market - Case study

What about related products?

The company controls and is selective about the products according to the healthy like. In the shops we can find "natural products" such as "certificated organic foods ». The products come from local or international supply, with that, WFM could have promotions from the merchants. The different categories of products are produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, specialty like beer, wine and cheese, whole body (nutritional supplements, vitamins, body care, and educational products such as books), floral, pet products and household products. The company is focused on the perishable foods (67% of its retail sales) to attract natural foods and gourmet shoppers. They try to sell the highest quality food in best possible prices.

What of the general environment segments and which factors therein are most relevant to WFM? 

The WF is one of the biggest organic food retailer in US, they sale everything that people needed in the current life.

In our case the general environmental segment can be divided into six different parts:

-demographic : The WF has to adapt their product to their customer’s need, which are changing every time. They have to focused for example on the baby’s food, or even on the ready-to-eat meals for the working women.

-political : It’s one of the main general environment segment of WF, the food has to be approved by the FDA, the administration controlling the selling food.

- and sociocultural : Customers are looking for new trends of life, and WF are aware to their opinions. They recently created a new segment, for children and pet food, an other success factor.

In which industry does WFM compete and what are the dominant characteristics of this industry?

WFM compete in the food industry, more exactly in the natural and organic one. « Natural » refers to food that is free of growth hormones or antibiotics, and  certificated organic food conforms to the standards as defined by the US Department of Agriculture, in October 2002.

Is this an attractive industry in which to compete (Porter)?

In the past, this industry was attractive to compete because at the time of Whole Foods’ creation, there were few competitors, with less than six other natural food stores in the United States. Furthermore, you could find organic food only in speciality shops, supermarket were created only after, because of the increase of the rural population. Nowadays,