Whole Foods also made a major move in the United States when it acquired Wild Oats, which was its major competitor at the time. The deal ran into trouble with the Federal Trade Commission but was ultimately allowed to go through, since there is nothing stopping other grocery stores from selling the same type of foods (Gogoi, 2007)
The second factor is that the real estate is going to be more valuable for Trader Joe's. The price is going to be roughly what it is worth for Fresh Market, but Trader Joe's has the highest sales per square foot in the industry (Loeb, 2012), so that in the hands of a better-run and more successful company like Trader Joe's that real estate will generate more income
The acquisition of Wild Oats was as much about gaining key real estate as it was about shutting down a competitor. Wild Oats was strong in regions where Whole Foods was weak -- Florida, the Pacific Northwest and Rocky Mountain (Moore, 2007)
When it moves in, it tends to do so slowly because of the need to acquire real estate and space its stores. The company's move into South Florida has taken many years just to get to a couple of stores in Naples and Miami, with expansion in the region remaining gradual (Valverde, 2014)
But this does call into question the perceptions of the company. One study found that Whole Foods customers generally do not think about money -- this despite the company having a strong negative reputation for its pricing (Jargon, 2013)
Another approach in addressing the scarcity of organic foods is for Whole Foods to embrace vertical integration. Vertical integration is defined as the degree to which a firm owns its upstream suppliers and downstream buyers (Clinton et al
Case Summary John Mackey is an experienced executive in the grocery industry. After more than thirty years in the grocery industry Mackey decided to focus on a new approach to the grocery shopping experience (Harasta & Hoffman)
Case for the Proposal The inputs at Whole Foods Market consisting of organizational environment factors, internal resource factors, and historical tradition factors are highly congruent with the company's strategy (Bezboruah, 2008). This is through implementation of the concept of Nadler-Tushman Congruence Model to evaluate the relationship among organizational environment factors, internal resource inputs, historical inputs, and differentiation strategy (Nadler & Tushman, 1980)
This is a reflection of perfect fit by the three categories and differentiation strategy. Case for the Proposal The inputs at Whole Foods Market consisting of organizational environment factors, internal resource factors, and historical tradition factors are highly congruent with the company's strategy (Bezboruah, 2008)
Classification according to Porter's three generic Competitive Strategies This strategy of the Whole Foods Market, Inc. is under the differentiation strategy in accordance with the Porter's three generic competitive strategies (Ormanidhi & Stringa, 2008)
Some of the recent obstacles and challenges limiting the achievement of targets of the organization include increase rate of competition, complications in relation to acquisitions, and essence of economic recession. In order to curb these obstacles, the organization focuses on the implementation of various strategies such as devotion to the community, environmental responsiveness, quality standards, motivational or highly rated workforce practices, and healthy growth model (Whole Foods Market, Inc
He is being viewed as an exceptional leader of the new age stressing that he breaks ranks with conventional capitalism and self-absorbed money hustlers like legendary General Electric CEO Jack Welch by placing profits in a moral context. (Colman McCarthy, 2005) More over, his policies are centered more unto the social responsibility of the business towards the welfare and satisfaction of the company's customers, employees, stakeholders and investors
Contradictory to the reviews given by The National Catholic Reporter, several articles have pondered through the type of situation WFM's employees are experiencing. Many former employees and social activists claims that While Whole Foods makes millions selling organic and natural foods, employees complain that they are overworked and underpaid (Eric Bates,1998) "It's an old wage for the New Age" (Austin Chronicle, 1991) a conflicting statement from the adhered policies of the company
Last year, its total revenue was more than $5 billion and its gross profit was more than $1.6 billion (Stephen Shapin, 2006) But just like any other rapidly emerging company in contemporary times, Whole Foods Market are not without any flaws and blemish that backdrop its more than 25 years of existence
Contradictory to the reviews given by The National Catholic Reporter, several articles have pondered through the type of situation WFM's employees are experiencing. Many former employees and social activists claims that While Whole Foods makes millions selling organic and natural foods, employees complain that they are overworked and underpaid (Eric Bates,1998) "It's an old wage for the New Age" (Austin Chronicle, 1991) a conflicting statement from the adhered policies of the company
Just as people cannot live without eating, so a business cannot live without profits. But most people don't live to eat, and neither must businesses live just to make profits"(John Mackey, Reason Foundation,2005) This kind of reasoning and moral justification have upheld John Mackey's firm decision and position with the nature of responsibility and obligation Whole Foods Market implores to its constituents
Ethically-produced food commands a high price, of course, but even during the recession, Whole Foods did not shirk its commitment: "Worried about the safety of the farm-raised salmon? Some of Mackey's stores recently displayed placards detailing test results for PCB contamination in the chain's farm-raised and wild salmon, along with FDA limits. Curious about the life of a chicken in the display case? It comes with a 16-page booklet and an invitation to visit the live chickens at the company's Pennsylvania farm" (Fishman 2004:1)
However, now that competition in the market is pushing the price lower in a slowing economy, Whole Foods may have to reevaluate its high-price, high-quality strategy. References Beyers, Tim. (2011)
The company began in 1978, when current CEO John Mackey crafted it as an Austin-based natural foods store. It began to expand outside of Texas in 1989, with branches in California, following with a store opening in 2001 in Manhattan and in the UK in 2004 (Our history, 2011, Whole Foods)
"Whole Foods not only survived the recession but they've thrived on it…They were able to clearly iterate their value proposition to the middle class consumer at a time when every spent dollar began to mean something again. They ramped up their own house brand offering more SKUs than ever (which kept margins high) and cut some of the more egregious prices in the store to hang on to loyal customers" (Brown 201)