The key opportunities for Whole Foods include: increasing attractiveness of the health and organic food industry, growth through acquisition, and enhancing their brand image and loyalty through community service. Whole Foods has already bought its largest competitor, Wild Oats, which has shown to be profitable. By promoting organic foods Whole Foods can increase sales and attract new customers by introducing them to the Whole Foods experience. Whole Foods would benefit not only by promoting itself but the industry in general.
In addition to promoting organic foods, they could enhance their brand image and loyalty by continuing their community service efforts. If the industry continues to grow and they continue to bring about brand awareness and loyalty, Whole Foods could strengthen its market share and profitability. ? The key threats that Whole Foods faces include: local grocers increasing their organic food options, the size of Whole Foods stores deterring customers, and the price of organic foods.
Local grocers could potentially take away from Whole Foods sales by stealing the customers that want to get in and get out. If customers can get the organic foods they want at a smaller grocery store, some customers may switch to them. This is where the size of Whole Foods’ stores becomes a threat to themselves. If they continue to buy and build large stores they could potentially deter some of their consumers to the smaller grocers in the area. Also what is a threat now is the high price of organic foods. Consumers must pay a premium for these items because they cost more to produce.
Whole Foods must keep the customers they have now loyal or they could lose them to non-organic foods that are cheaper. The organic foods market is very attractive and continuing to increase in attractiveness. Whole Foods holds a very strong position in the market and could potentially position themselves in an even stronger and more profitable position. Health and organic foods have become very popular and show no signs of slowing in demand. The processes by which organic foods are made will only become less expensive as new technologies and continuing knowledge of the industry grow.