Whole Foods Strategy Analysis

2899 words 12 pages
Whole Foods’ market strategy is built upon their fundamental differentiation from conventional supermarkets. We strive to meet our strategy by working under the motto of Whole Food, Whole People, Whole Planet. At Whole Foods we use a focused differentiation strategy to offer unique products to our customers in a narrowed market. We focus on selling high quality organic and healthy foods that our customers can feel comfortable eating at a higher price. Whole Foods’ competitors include Kroger, Trader Joe’s, and Fresh Market. These three competitors operate under different strategies to set themselves apart in the grocery market. Kroger operates under the cost leadership strategy. They set the floor price in the market that still allows them …show more content…

Whole Foods has a decent amount of bargaining power as long as the social and economic climate does not shift too much from the popularity a healthier lifestyle, organic foods, and “going green.” As of now, Whole Foods has a decent amount of bargaining power towards customers because we cater to the social trends such as preferences for organic foods, focus on a healthier lifestyle, and striving towards a greener Earth that our customers are searching for. Now, if the social climate shifts such that our customers are less willing to pay the prices we offer for our products at Whole Foods, this bargaining power will shift. If this does happen, Whole Foods would have to re-evaluate our strategies to regain bargaining power with consumers. Some ways we can gain back buyer power is to lower the prices in the store. If Whole Foods does not wish to lose their image of a high-priced grocer, than we would have find another way to change our strategy to form around the new social trends.
Whole Foods has a lot of bargaining power with suppliers. We are the largest high-end organic grocery store in the market, so suppliers want to get their products on our shelves. We do not really need to seek out suppliers for our products, as they come to us since we have gained customer loyalty to our brand. Therefore, we are able to go to extreme lengths to make sure that all of our products are organic and the best we


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