Whole Foods Company Analysis

Definition of Whole Foods’ Products This company specializes in distributing organic foods that are produced in natural ways. These foods are grown in farms and derive nutrients from nature. The products’ nutrients are not supplemented by organic fertilizers like those of other companies like Wal-Mart. In addition, these products are processed and stored in natural ways without using artificial preservatives.Advertising We will write a custom case study sample on Whole Foods Company Analysis specifically for you for only $16.05 $11/page Learn More This means that when a client buys any product from this company the person will enjoy the natural taste and flavor of the products. This is achieved by using natural ways of preserving and processing farm products. Even though, this company may be offering a higher price compared to other companies most clients prefer having quality food that will not risk their health. This is shown in most labe ls that claim the products are 100% natural, organic and contain no additives. In addition, this company has a variety of products that supplement each other like wines and cheese. The employees are well trained to offer useful information and tips about various products. These products are sourced from local areas to ensure each stall monitors and identifies naturally produced vegetables, fruits and animal products. The above principles help this company to ensure it delivers value to its clients without necessarily forcing them to visit its stores due to lack of other options. Threats Posed by the Popularity of Organics The entrance of competitors like Wal-Mart in selling organic products is a sign of hard times ahead for this company. It is easy to predict that this company is no longer going to enjoy the monopoly of distributing organic products in Canada. It is necessary to state that while other companies are exploring the benefits of stocking and supplying organic products th e consumer market remains constant. This means that these companies will compete for this market and share their clients proportionally. As a result, Whole Foods will face serious challenges since other big companies have economies of scale and production that will enable them to dominate this market. In addition, they are already established and known by consumers; therefore, they will not need introduction or extensive marketing strategies to get a good share of the market. On the other hand, the popularity of organic products in this region will not affect this company’s market if it develops strategies to retain its clients. It has already established a large clientele base and should focus on retaining it and if possible getting new ones from other competitors. The best way to start competing is by ensuring the existing clients are offered quality services. This will make them market this company to other potential clients.Advertising Looking for case study on busin ess economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Even though, other competitors like Wal-Mart have started selling organics it will take time before their clients start buying them. In addition, the new entrants will take time before they discover the secrets of quality organics. This will give Whole Foods time to prepare to face their competitors and in the process it will gain competitive advantages. Therefore, this company should ensure it wins the confidence of all existing clients and expand its marketing programs to ensure the existing customers are retained and at the same time attract new ones. Future Challenges This company has targeted the low and middle income earners that are conscious about what they eat. It is important to state that these groups will always be present in a population no matter how technology or democracy changes. The society must always be disintegrated into various groups depending on their political , social and economic orientations. In addition, the need to live in a clean environment and eat healthy foods will force people to seek organic foods that are widely recommended by nutritionists. This means that this company will continue to dominate in offering organic products. Moreover, the human population is never static but instead it keeps multiplying at a very fast rate. This increase in population will necessitate the need to have enough food to feed everybody. Consequently, the demand for food will continue to rise no matter the type of food a company produces. However, it is clear that there is a serious challenge facing this company in terms of production costs. Current demographic data shows that agricultural lands are diminishing at an alarming rate. Therefore, in the near future there may be no land for producing organic foods. The company will be forced to spend a lot of money in acquiring natural products. This will lead to reduced profits since there will be high operational costs. Even though, most people know the negative impacts of inorganic foods they are usually reluctant to buy organic foods since they are very expensive. The world is experiencing economic hardships that seem to become more forceful in the coming years. This will force middle and low income earners to tighten their budgets by purchasing inorganic foods that are less expensive and readily available.Advertising We will write a custom case study sample on Whole Foods Company Analysis specifically for you for only $16.05 $11/page Learn More This company has developed effective marketing tactics including branding their outlets with catchy phrases like â€Å"Whole Paycheck†. However, the name given to this outlet located in California does not mean that the products offered are cheap. This marketing mix is a tactic employed to win the trust of those who understand the balance between quality and quantity. This company cannot avoid this t rick since it is an advantageous tactic used to attract clients who are conscious about what they eat. However, it can be agreed that this issue may change in the future depending on the impacts of new entrants like Wal-Mart in the distribution of organic products. This means that if the anticipated competition exposes this company to market risks it must adjust its prices to ensure it maintain its existing clients. Other companies may use this pricing issue to their advantage by downplaying Whole Foods’ marketing mixes. Impacts of the Future Trends It is important to state that this company relies on two critical issues that determine its market penetration and control. It has to ensure that it puts its slogan into practice by producing natural products. The temptations to adopt genetic engineering products may prove to be beneficial in the short run but will cost this company a lot in terms of clients’ trust. Secondly, this company has to reconsider its prices given that the world is experiencing frequent economic melt downs. People are cautious about their spending and wish to save money for use in the future. Therefore, it may be forced to adjust its prices to maintain its market and avoid giving its competitors a head start. Other companies are planning to sell organic products and Wal-Mart has already started exploring this possibility. Therefore, Whole Foods will be forced to offer cheap products to contain the effects of new entrants in this field. This case study on Whole Foods Company Analysis was written and submitted by user Isabell Wilkinson to help you with your own studies. 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