Whole Foods Market was founded in Austin Texas, in1980 by cofounder and CEO John Mackey. The market began as a local supermarket that provided natural and healthy foods; it has since grown to 289 stores in the United States, Canada, and Great Britain. Mr. Mackey’s vision for Whole Foods is to provide natural and organic food options for citizens around the globe. The company’s slogan exemplifies this goal: “Whole Foods, Whole People, Whole Planet” (Thompson, A. 2010). During the economic downturn of 2008-2009 Whole Foods Market took a proactive approach to the recession by reducing store sizes, implementing a hiring/promotion freeze, adjusting price points, offering coupons, and increasing the emphasis of ‘value’ in their advertising. While the company overall saw slowing sales and slight loses these endeavors helped to turn things around for the company by early 2010.
1. What are the chief elements of the strategy that Whole Foods Market is pursuing? (points 10)
When Whole Foods Market was first opened the chief strategy was focusing on the niche market of natural, healthy, organic foods and creating a competitive edge in the grocery market place. The company began growing and purchasing stores with similar business models allowing for expansion into different markets. As expansion occurred the focus shifted from the niche market strategy to outcompeting rivals. This strategy shift was accomplished through higher quality, larger selections, interactive shopping experiences, highly trained and committed team members, and selective supplier selection processes. These elements have allowed Whole Foods Market to build awareness with the consumer regarding the ease to eat and maintain healthy lifestyles. Another aspect of the Whole Foods Market strategy is growth; they have achieved growth thru the acquisition of smaller store fronts with similar business plans. Whole Foods Market appeals to individuals not ready or able to commit to a complete vegetarian,...