Case Study-Whole Foods

1285 words 6 pages
1. Whole Foods creates a narrow market niche by catering to the special needs and tastes of the consumer, thus, creating a differentiation-based advantage over competitors. By taking actions to acquire Wild Oats, Whole Foods has gained the competitive edge in the marketplace.

2. Recent developments and conditions in the natural and organic food industry can put a strain on the vision and strategy that John Mackey first set out to accomplish. However, part of a good business strategy is to be able to adjust and change with development or restrictions by government standards.

3. John Mackey does have a good strategic vision for Whole Foods. He has the ability to grow the business with such profitability and foresee what
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Whole Foods enjoys a competitive advantage over rivals in the marketplace by focusing on special needs and desires of the consumer. Since this company exhibits strong strategic outcomes, it is in a better position to improve the financial performance for the future of the company. The basis for their winning strategy is helping the local communities, the environment, and as their motto states, the “Whole Planet”.

7. One of the business approaches to strengthen a company’s standing in the marketplace is to acquire or merge with other companies. Whole Foods acquired a floundering company called Wild Oats. The acquisition saved the owner of Wild Oats from losing all its finances. Whole Foods made the stores larger and easier for the consumer boosting the financial performance of Whole Foods. More stores, in more states, and more exposure to the market were their goal.
Unfortunately, overtaking an acquisition means cutting jobs, and closing unprofitable stores. Whole Foods spent millions of dollars acquiring, revising, and reorganizing operations in an economy that was in the start of a recession approx. the same time of the acquisition.
Although the decision to acquire Wild Oats was a good one, the timing of the purchase in a bad economy made Whole Foods overhaul its financial performance. They had to reduce new store openings, pay to back out of signed leases, and suspend quarterly dividend payments

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