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Compose a 1750 words assignment on whole foods market. Needs to be plagiarism free!
Compose a 1750 words assignment on whole foods market. Needs to be plagiarism free! This case study provides a different look at the situation, wherein the specificity of the supplies is what gives the product and services of WFM its value.
Following the turn of the millennium the market for natural and organic food sales shifted from niche to mainstream. Once considered excessive in terms of cost and unimportant in terms of health, WFM pioneered and developed an industry that now accounts for more than 2.5%, or $13.8 billion in US food sales annually. This product line has shown greater growth in sales than traditional grocery offerings for the last several years. Further, studies indicate that this trend will continue into the future as the Baby Boomers reach senior status, their children enter middle age and their grandchildren reach adulthood. Each of these generations has enjoyed a greater degree of disposable income and exposure to higher education. factors which both play a major role in WFM’s market demographic. With that said, at the time this study was written, their organizational objective was to reach $12 billion in revenue and have more than 300 stores in operation (Harasta & Hoffman, n.d.). They were able to achieve only half of this objective by reaching 304 store locations domestically and another 12 internationally for a total of 316 current locations (“Our Stores,” n.d.). Unfortunately, while up 12% from 2009, they fell short of their fiscal goals reaching $9 billion in sales in 2010 (McCann, 2010). however with only half of the 2011 fiscal year gone they have significantly overtaken the half-way mark of 2010 by already producing $5.4 billion in sales (McCann, 2011).
WFM face three pivotal issues that are hindering their ability to expand at a faster pace: Increased competition, rigid target market requirements and a limited supply of natural and organic goods. .Currently, they control 47% of organic food sales in the US. however similar vendors and national supermarket chains have taken notice of the profitability of natural products and entered the market with varying degrees of success.
