Whole Food Market
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What about related products?
The products that offers Whole Foods are natural and organic food offering customers a wide variety of products. ¬This means food that is free of growth hormones or antibiotics and food conforms to the standards as defined by the U.S Department of Agriculture in October 2002.
Product categories at Whole Foods include: produce, seafood, grocery, meat and poultry, bakery, prepared foods and Catering, Speciality( Beer, Wine and Cheese), Whole Body (nutritional suplements, vitamins, body care, and educational products such as books), floral, pet products and householdsd products.
What of the general environment segments and which factors therein are most relevant to WFM?
To WFM one of the most relevant could be about population because in the last years, consumers have made a gradual move toward the use of fresher, healthier foods in their everydays diets. There are a segment that prefer expend more money in gourmet shops with a high quality in their products.
But low prices and convenience continue to be the dominant factors driving consumers to supermarkets today.
That is other factors the competitive environment, unless Whole Food Market was one of the first natural an organic products shop, when it open only were another 6 shops like this in USA in the next years a lot of grocery are flourishing. As well the supermarkets and shops are introducing new products to sell similar to the WFM.
The last factors is about political because a strict government requirements must be satisfied; and all the products must be conforms to the standars. This is more costs to adquire the products from the suppliers than need have the certificate of quality in their products.
In which industry does WFM compete and what are the dominant characteristics of this industry?
WFM compete grocery industry with low prices and convenience. The industry is charecterized by low margins and continous downward pressure on prices made evident by cupons, weekly specials, and rewards card. And a state of price competition.
Is this an attractive industry in which to compete (Porter)?
Threat of new entrants
With the new preferences of the customers the supermarkets and small shop are introducing new products, and these can affects the costs of the products because probably supermarkets can have slow prices, this means that WFM need change his strategic in this price competition.
Substitutive products
Probably there arent any substitutive for natural and organic products because nothing is more healthier than natural products, only maybe is someone invent a natural products with more vitamins or something similar but is very difficult find substitutive products so this is an advantage to WFM
Competition
Unless WFM was one of the first shop in US there are a lot new competitors like supermarkets and shops that offers natural and organic products. Furthermore there are others shops similar to WFM like Trader Joes or Wild Oats .
Bargaining power of suppliers
With the increasing demand of natural and organic products the power of the suppliers could be more significance than now because they can increase the price of the products.
Bargaining power of buyers
Unless consumers of natural organic products want the best quality and they arent worried about prices. With the news supermarkets and shops with less