SWOT Analysis Of Whole Foods analyzes, Whole Foods Market is the largest organic and natural foods market within the United States. It is the first store that capitalized on the need for natural, organic food but was put into the layout of a traditional grocery store. When it started, stores that sold natural, organic food were few and far between. Apart from providing healthy, wholesome food, Whole Foods also made shopping a pleasant experience.
Did you know?
The original Whole Foods store was opened in a home that was zoned as commercial?
Whole Foods Market was founded in Austin, Texas, when four local businesspeople decided the natural foods industry was ready for a supermarket format. Our founders were John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Whole Foods.
Whole Foods At A Glance – Whole Foods SWOT Analysis
Company: Whole Foods Market, Inc.
Founders: John Mackey | Mark Skiles | Renee Lawson Hardy | Craig Weller
Year of establishment: 20 September 1980, Austin, Texas, United States
CEO: John Mackey
Headquarters: Austin, Texas, United States
Employees (Dec 2020): 91,000
Ticker Symbol: WFM
Annual Revenue (Dec 2020): US$16.03 Billion
Profit net income (Dec 2020): US$2.9 Billion
Products & Services: Apparel | Supplements | Body Care | Lifestyle Items | Grocery | Seafood | Specialty Items | Produce | Prepared Foods | Meat
Company Website: eu.wholefoodsmarket.com
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Whole Foods SWOT Analysis – SWOT Analysis Of Whole Foods
SWOT Analysis Of Whole Foods analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Whole Foods SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Whole Foods SWOT Analysis. Below Is The Detailed SWOT Analysis Of Whole Foods.
Whole Foods Strengths – Whole Foods SWOT Analysis
1. Brand Recognition: The future of a business is only determined by the image of its brand. People generally prefer brands with a strong brand image. In addition, Whole Foods enjoys a strong brand image since its beginning. It was ranked 3 third spot in the Reputation Institute’s 2015 most trusted retailer annual survey. It allows Whole Foods to stand out from its peers and increase its popularity into an ever-growing clientele. The volume of profits, profits and sales generated by this consumer base have ensured the future of the supermarket.
2. High-Quality Standards: High-quality is the main primary selling feature of the product. Whole Foods has made its policy to provide most superior quality products for food at its retail stores. This has allowed Whole Foods to expand its customers. Whole Foods has set the benchmark high by prohibiting the ingredients that are commonly found in products of other retailers. Artificial flavors as well as sweeteners, colorants, along with hydrogenated fats, are all banned. The company also bans any farming, fishing or ranching practices that don’t meet the company’s strict standards. The growth in business has given the company the power to raise some of its costs. The target market is an educated and upper-middle-class backgrounds who will pay more for the assurance of good quality food.
Whole Foods Weaknesses – Whole Foods SWOT Analysis
1. Dependence of American Markets: Whole Foods is at its most risk due to its dependence on American markets. It made ninety-seven percent of the total revenue from the US market in the year 2015. It’s not sustainable in the event that the American economy fails as a result of the unpredictable worldwide economy. The company was already dealing with reduced profits during the recession. The impact of a new recession could be devastating to its own interests. It’s limited its operations in Canada in the UK insofar as the International branch is concerned.
2. Consumer Perception: Wholesales had a difficult time gaining sales growth because of overpricing and charging its customers too much. This has resulted in a number of complaints. The general perception of consumers is that the business deliberately offers products which are expensive. The brand has received the name ” Whole Paycheck” because of the perception that the costs could make the entire salary of the customer. This has damaged the image of the brand.
Whole Foods Opportunities – Whole Foods SWOT Analysis
1. Diversification (365 Stores): To address the issue of costly products, Whole Foods has created a low-cost market that is called the 365 store with Whole Foods Market. The company’s focus is on providing healthy and affordable food choices to consumers often. All 365 Whole Foods Market was created to serve those in the people of the middle-class and younger generations: with organic choices for food. The stores are less than the superstores of the past. But, they’re complimentary products. Whole Foods establishment was accused of overpricing over the years and have made a significant investment in this area to address these concerns.
2. International Expansion: Whole Foods’ over-reliance on US markets is well-known. It allows the company to diversify its operations and explore International Expansion. There are already functioning branch offices located in Canada as well as the UK which it will need to put more money into to further expansion. It is also required to focus on Europe as well as Asia as potential sources of growth in its revenues. While it’s an internal debate but the margin of growth is still achievable by implementing the plan.
3. Alliances: Amazon made it clear that they was going to buy Whole Foods and make its products available on its websites. The deal was completed on August 28th the 28th of August, 2017. The historic acquisition has resulted in immense success for the business in terms of growth in revenue as well as an improvement in the number of employees who are employed..
Whole Foods Threats – Whole Foods SWOT Analysis
1. Poor publicity Bad Publicity: This company been subject to massive media criticism and negative publicity due to the way in which it handled its 2015 customers’ overcharging. The incident led to many complaints against the company. The company was then hit with a lawsuit which ultimately came to the agreement of 500K as compensation. Since then, sales growth has slowed down and it has received negative publicity.
2. Increased Competition: Despite Amazon buying Whole Foods, the company hasn’t been able to keep out from competition from its main rivals like Walmart which plans to surpass it in the coming year. Whole Foods continues to face an intense competition. Walmart has been able to give it a challenge. The two companies Walmart as well as Target use competitive pricing to try to beat Whole Foods which has been unsuccessful to date.
Whole Foods SWOT Analysis Overview Template
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