Excerpt from SWOT:
The negotiating power of suppliers
Suppliers possess a relatively substantial bargaining power. On a market like organic and natural foods, suppliers are very very important to companies’ activity. In other words, that they practically rely upon their suppliers.
As a consequence, suppliers represent the most important environmental factor of impact for Entire Foods, and the same situation applies when it comes to any organic foods business. This organization consists mainly in the raw materials that the organization uses to generate the goods that sells below this brand. You’re able to send activity depends on the quality in the raw materials, and any potential delays by suppliers. The prices negotiated with suppliers possess a direct effect on the production costs, and on the end-user price.
SWOT Examination
Strengths
You’re able to send strong situation on the market in ensured by numerous talents the company advantages from. First of all, the corporation is renowned by the quality of its products. This creates competitive advantage compared to the company’s opponents. The company advantages from a long tradition on the market, turning into one of the most dominant brands in the field, and allowing the company the ability is required intended for managing a business in this market. Another talent is symbolized by the broad variety of organic food provided by Entire Foods. Also, the company has the capacity to cover a huge geographical place, which helps increase the number of consumers, and enhance their loyalty.
Weak points
The most important weak point of Complete Foods is usually represented by the high rates of its products. As mentioned above, the company sells high grade products for premium rates. There are client segments that find this kind of prices too expensive.
Also, you can actually distribution method is not a versatile one, deciding the company to shed ground in favor of certain opponents.
Opportunities
The organic food market segment is in continuous development method, which means there is room for Whole Foods to develop and to broaden its activity.
The company’s creation capacity provides for the company for making rapid and significant advancements in growing its selection, compared to more compact companies that cannot afford to modernize their production method.
Threats
The largest threat intended for Whole Food is showed by huge chains of supermarkets and hypermarkets. This is because such stores can afford to train lower prices in comparison with Whole Foods, prices desired by many consumers. Also, some customers prefer to do all of their shopping in a single place, such as a supermarket or maybe a hypermarket, rather than making the excess effort to buy organic products at Whole Food.
Recommendations
As mentioned above, Whole Food benefits from a series of strong factors that employed properly inside the opportunities offered by the market can easily generate significant competitive advantage for the company.
There are more and more people enthusiastic about organic food, in their make an effort to adopt a healthier lifestyle. To be able to increase awareness amongst existing and potential customers, Whole Food create a journal that should give attention to the benefits of organic products and organic foods. The magazine must be free of charge.
Also, the company should develop an aggressive marketing campaign, focusing on marketing products for each group era, presenting the huge benefits organic food have for every age group as well as for each specific category of customers.
In order to boost its consumer bottom, the company should expand the range of products, depending on thorough analysis on client segments.
Citation:
1 . Industry Statistics and Projected Progress (2008). Organic Trade Relationship. Retrieved Feb . 8, 2010 from http://www.ota.com/organic/mt/business.html.
2 . Quest, N. Dorfman, B. (2009). How green is my personal wallet? Organic and natural food development slows. Reuters news agency. Retrieved February 8
