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Team 3. Rebecca Eggerman Alexander Johnson Miguel Lopez Hannah Stephens Carissa Tarnowski. Company Background. Founders: John Mackey and Renee Lawson Hardy and Greg Weller and Mark Skiles 1980 Safer Way Natural Foods and Clarksville Natural Grocery merged creating Whole Foods Market

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team 3
Team 3

Rebecca Eggerman

Alexander Johnson

Miguel Lopez

Hannah Stephens

Carissa Tarnowski

company background
Company Background

Founders: John Mackey and Renee Lawson Hardy and Greg Weller and Mark Skiles

1980 Safer Way Natural Foods and Clarksville Natural Grocery merged creating Whole Foods Market

Merger established blue ocean and now Whole foods is the iconic brand for natural foods and practices

Grown to over 340 branches in the US, Canada, and the UK and is now a $11.7B company

mission statement
Mission Statement

The motto highlights their mission:

Whole foods: We obtain our products locally and from all over the world, often from small, uniquely dedicated food artisans. 

Whole people: We recruit the best people we can to become part of our team. We empower them to make their own decisions, creating a respectful workplace where people are treated fairly and are highly motivated to succeed. 

Whole Planet: We recognize the connection between our lives, our communities and the environment

core values
Core Values

Selling the highest quality natural and organic products available

Satisfying and delighting our customers

Supporting Team Member happiness and excellence

Creating wealth through profits and growth

Caring about our communities and our environment

Creating ongoing win-win partnerships with our suppliers

Promoting the health of our stakeholders through healthy eating education

competitive strategy analysis revenues
Competitive Strategy Analysis: Revenues


$7,954 million


$8.032 million


$9,006 million


$10,108 million


$11,699 million

competitive strategy analysis product differentiation
Competitive Strategy Analysis: Product Differentiation

Price Premium

High Quality

Harris Interactive Study

82% said prices impacted grocery shopping

72% will continue to buy natural and organic foods

corporate strategy analysis pricing strategy
Corporate Strategy Analysis: Pricing Strategy


Value Offerings

Expanding Market Base with Lower Prices

The Whole Deal

Virtual Value Tour

Price Promotions



corporate strategy analysis quality
Corporate Strategy Analysis: Quality

High Quality

Strict Quality Standards

Foods free of artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats

Foods that are fresh wholesome, and safe to eat


Highest farmed seafood standards in the industry

First to offer Marine Stewardship Council certified seafood

Meat and Animal Welfare

5-Step™ Animal Welfare Rating Standards


Whole Foods




swot analysis
SWOT Analysis


Market Leader


Quality and Store Customization

No. 19 on Fortune’s World’s Most Admired Companies list


Concentrated in US

Relative Slow Growth

Pricey Perception

Limited number of suppliers

  • Opportunities
    • Expansion
    • Consumer Health Trends
    • Increasing number of US organic farmers
  • Threats
    • Supermarkets introducing organic products
    • Consumers downgrading
    • Increasing food prices and inflation
porter s five forces
Porter’s Five Forces

Potential Entrants






Industry Competitors




whole foods strategy the whole foods experience
Whole Foods’ Strategy: The Whole Foods Experience

Case Study

Shopped at least twice a month


WFM Customer





Varied, but generally much higher than the urban average

  • Customer Values
  • Environmental Sustainability
    • Local or organic food
  • Labor Justice
    • Fair Trade
  • Community Building
    • Shopping at a local market to strengthen community relationships
first visit experience
First Visit Experience

I was amazed. I loved it at first sight. They say, can you fall in love at first sight? Yeah, you can!

The pleasures and the special role in their daily routines of the WFM shopping experience

“Outing”, “Vacation”, or “A retreat from the mundane world of work and family responsibility”


What it is not

Is not the Fastest companies

Not the ones looking for the turbulent markets

Not the most innovative

The most radical changes

  • What they are
  • The ones that know when to be fast and when to be slow.
  • They find what works and why
  • The stay consistent as possible to great as stable environment to grow
the blue ocean
The Blue Ocean

Cirque du Soleil

Didn’t compete with the big and established

They expanded the boarders of the market

They gleaned a new industry from the old one

fire bullets then cannonballs
Fire Bullets then Cannonballs

Why build new stores in new locations when somebody else has done it for you?

Whole Foods acquired its main competitor

They have an established customer base

They know the local market and community

whole foods market s key issues
Whole Foods Market’s Key Issues

Three of their most obvious key issues in the media in 2013 consist of the following:

The consumer’s want for Non-GMO labeled products on all products that contain do not contain genetically modified organisms

Whole Foods trying to expand into smaller areas with lower income populations to increase consumer base and have a larger number of store locations

CEO John Mackey’s strong, radical, libertarian views and push for more “Conscious Capitalism” which could be hurtful to the company

options for non gmo labeling
Options for Non-GMO labeling

Whole Foods has the option to either commit to labeling all of their Non-GMO products, which they have stated will take up to 5 years to complete with much research and investment costs, to provide customer satisfaction.

Whole Foods has the option to opt out of labeling all their Non-GMO products in order to be able to spend more money on new store locations and not have to deal with the disparagements from those who oppose the movement.

options for store expansion goal 1 000 in us
Options for Store Expansion: Goal 1,000 in US

Whole Foods has the option to continue to expand into smaller and lower income areas in order to reach their goals of eventually having 1,000 stores in the U.S.

Whole Foods has the option to only locate their stores in their traditional wealthy, large income areas, which is where their business seems to thrive most. This will better ensure guaranteed success in new store locations. There could be a chance that this option may not provide the company with being able to have 1,000 stores in the United States.

options for ceo john mackey s public behavior
Options for CEO John Mackey’s Public Behavior

John Mackey can continue to be outspoken on his views of politics and business that will most likely ensure the business of people who believe in the same views as he does.

John Mackey can make the choice to become more reserved on publically speaking about his political views, which may ensure to keep more of his customers happy and not cause consumers with different views to protest or boycott Whole Foods.

whole foods market s pledge to consumers
Whole Foods Market’s pledge to consumers

“When Whole Foods Market fails to measure up to its stated Vision, as it inevitably will at times, we should not despair. Rather let us take up the challenge together to bring our reality closer to our vision.”

industry analysis business and economic characteristics
Industry Analysis: Business and Economic Characteristics

Health conscious individuals

Increasing popularity worldwide

Rapidly growing industry

Creation of Blue Ocean

Competitor inspiration

Supply strain

industry changes
Industry Changes

Consumer demand increase

Supply shortage

Government involvement

WFM remaining profitable

Innovative company

Strategic adaptations

competitive forces
Competitive Forces

“Rival digestion”

Acquiring various companies

Increasing market share

Relationship maintenance

Grape supplier in Chile

Strategy innovation

On the path to 10X

strong competitors
Strong Competitors

Traditional Grocers


Low prices

Similar products


High quality products

Competitive prices

weak competitors
Weak Competitors

Organic/natural grocers

Sprouts Farmer’s Market

Privately owned

Not a lot of expansion

Natural Grocer’s

Recently publically traded

Bland atmosphere

Regardless of competitive prices and quality

future competitive moves
Future Competitive Moves?

Build brand image

Focus more on corecompetencies

Increase advertising

Consider Endorsements

Extend relationships

Expand into more countries

keys to competitive success
Keys to Competitive Success


Core Competencies

Supplier Relationships


further industry analysis
Further Industry Analysis

Highly volatile and increasingly competitive market

Many new entrants into the industry

Volatile prices in costs of food

Whole Foods is not a cost leader

Key factors

Strong growth strategy

Commitment to quality of goods

driving forces for change
Driving Forces for Change

New Paradigm for customers in America

New entrants into the marketplace

Labeling laws and regulations

Number of new entrants into the market

Genetically modified products

Number of customers

Customers seeking diet foods

New value on eating healthier

Additional labeling and regulations

New FDA regulations and labeling for GMOs

Foreign markets and expansion

Need for international presence

competition issues
Competition Issues

Lack of economies of scale

Need for expansion in the UK and Canada

Need for reduction in store space

Walmart and giants

Global supply chains

Competitive advantage

ambition of whole foods
Ambition of Whole Foods

Push for differentiation and value

Quality over cost

Reduction in stores that it is expanding in to

Growth won’t save the company

Use of lower ranged product line 365 organic