Whole Foods Market Opportunities and Threats
Whole Foods Market is recognized as the largest organic and natural foods supermarket in the United States. This market is ranked among the leading retailers having 172. Additionally, the company owns and operates several subsidiaries and has experienced growth over the years through mergers and acquisitions and expansion of their stores. This paper will address the company’s opportunities and threats in accessing its ability to improve its business prospects.
Whole foods market’s mission is to produce quality products and supply them to their customers at affordable prices. The products are in high demands all over the world hence making global expansion a very viable option. The retail operations have more growth potential globally because of the high demand. Supply chains have also experienced increased growth globally because of the ready market for whole foods. These two options when properly utilized could lead to more profits to the business in this sector. Competitive pricing is strength worth considering as there are no oligopolies or monopolistic competition in whole foods. This makes it possible for the businesses to compete without any single entity determining the prices.
On the other hand, the company has been experiencing intense competition in its industry. The intense completion is brought about by the low-cost pricing by which leads to varied options for the customers. This also means that the businesses would not be making more profit as other business that is in high cost pricing markets. The rise of GMO products is another threat that affects whole foods market. The GMO are of high quality and attractive to customers hence not favoring people who are involved in whole foods. The GMOs have shorter yielding periods hence fetch more profits with a short period as compared to whole foods.
The impacts of climate change and the resulting global warming has also had adverse effect on food production. This has led to reduced food supply in the market hence leading to losses on the part of business people. They are forced to supply low quality foodstuff at high prices. Local, regional, and national wholesalers and producers comprise the many suppliers in the Whole Foods market. Consequently, this weakens the power of the suppliers against a firm. Factors such as size determine the pressure exerted by the suppliers on the Whole Foods market. Moreover, the threat of substitutes presents consumers to shift to alternative products that satisfy the needs at slightly differentiated costs. As a result of the easy access and penetration into the Whole Foods market, new entrants continue affecting the industry shares held by the pioneers in the industry.