Whole Foods and the Organic Food Market Analytical Essay by scribbler

An analysis of the Whole Foods company and the organic food industry.
# 152233 | 1,376 words | 5 sources | APA | 2013 | US
Published on Jan 16, 2013 in Business (Companies) , Business (Industries)

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This paper examines trends in the organic food market and provides a five forces analysis of the Whole Foods company. The paper specifically examines the environmental threat to Whole Foods and provides a SWOT analysis. Finally, the paper discusses the sources of sustainable competitive advantage for Whole Foods.

Five Forces
Environmental Factor
Sustainable Competitive Advantage

From the Paper:

"Buyer power is relatively low. Buyers of organic food are largely price inelastic. While they have numerous substitutes available, they often prefer not to take advantage of those. Buyer volume is low, which makes the price takers. There is no buyer concentration in the retail business. Whole Foods has considerable pricing power over its buyers. Likewise, firms in the organic food business have considerable pricing power over their suppliers. Whole Foods and other major retailers are high volume sellers, which means that their business is important to most suppliers - in organic food. Whole Foods is one of the most important retailers for any company interested in selling volume. While there is little threat of forward integration, there is a low degree of concentration in organic foods and suppliers can enter and exit the industry easily, lending Whole Foods and other large retailers considerable power over their suppliers.
"There are moderate barriers to entry. While it is easy to open an organic grocery store, achieving anything close to the size and volume of Whole Foods requires significant capital investment and economies of scale. Access to inputs is easy as is distribution, however strong brand identity is required to compete against the established names in the organic grocery trade. The biggest new entry threat is market entry from established conventional grocers and retailers (Wal-Mart, Costco, Target, regional grocery chains)."

Sample of Sources Used:

  • MSN Moneycentral: Whole Foods. (2010). Retrieved April 16, 2010 from http://moneycentral.msn.com/detail/stock_quote?symbol=WFMI&ww=1
  • Organic Trade Association. (2008). Industry statistics and projected growth. Organic Trade Association. Retrieved April 16, 2010 from http://www.ota.com/organic/mt/business.html
  • Business Week. (2006). The organic myth. Business Week. Retrieved April 16, 2010 from http://www.businessweek.com/magazine/content/06_42/b4005001.htm
  • Fonda, D. & Thomas, C. (2002). Organic growth. Time Magazine. Retrieved April 16, 2010 from http://www.time.com/time/magazine/article/0,9171,1003040-2,00.html
  • McCarthy, C. (2010). Whole Foods working to curb Facebook-based scam. CNet. Retrieved April 16, 2010 from http://news.cnet.com/8301-13577_3-20001665-36.html

Cite this Analytical Essay:

APA Format

Whole Foods and the Organic Food Market (2013, January 16) Retrieved July 05, 2022, from https://www.academon.com/analytical-essay/whole-foods-and-the-organic-food-market-152233/

MLA Format

"Whole Foods and the Organic Food Market" 16 January 2013. Web. 05 July. 2022. <https://www.academon.com/analytical-essay/whole-foods-and-the-organic-food-market-152233/>