Whole Foods Swot Analysis free essay sample

Dept-High inventory cost-Price point-Narrow Target customers Base-Declining net income-Fast expansion-Low cash reserves-lack of innovation-High staff costs-High health care for employees-Limited add and marketing-Wild acquisitions –Unionization-Lower market share-commodity Opportunities: International expansion-Increasing demand for products-Becoming and staying as top leading organic producer-Expanding private label-partner with new customer portals-Consumers against big box stores- Partner with new customer portals. Threats: Competition-Stability and recession- Sameness experience-Diseases tied to organics- Became too big and fancy for customers-No more stores to acquire chains-food recall-contamination-Lower ad budget- . Problem Statement –– Whole Food faces new treat of competition and the challenge of an outdated growth model. Critical Issues – (Segmentation strategy) Target audience for Whole foods? Price sensitive or Health sensitive, Quality ,Selection A) Cost of inventory B) Out leveraged by competitions buying power C) Competition is increasing Alternative Solutions (15 pts. ) –. A. Maintain and Keep up with mission statement and core values. (keep growing) B. Sell Whole Foods. C. Maintain current differentiation strategy because they are leading the market. We will write a custom essay sample on Whole Foods Swot Analysis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page D. Decrease employee costs. E. Focus on international markets since Souring USA economy hurt sales. F. Open Smaller stores and increase marketing. 5. Solution (10 pts. ) – Open Smaller Stores and increase marketing. They are under the industry average. There is room for improvement. 6. Summary of Recommendations (10 pts. ) – Maintain current differentiation strategy because they are leading the market. Focus on opening smaller stores. We need to do sensitivity analysis. 7. Analysis (25 pts. ) –(Sensitivity) By decreasing store size we will decrease our store opening cost to 33% ( Number we are thinking) This will decrease the numbers from 1. 7 B to 1,1 B per store ,overall we will bring total store opening costs from 15M to 10M. We will increase marketing from %5 of sales to 2. 5 to directly confront competition.