Business Stragegy - Whole Foods Market

Executive Summary

Whole Foods Market was founded in Austin in 1980 when Safer Way Natural Foods, owned by John Mackey and Renee Lawson Hardy, merged with Clarksville Natural Grocery, owned by Craig Weller and Mark Skiles. The company is now the largest chain of organic and natural foods supermarkets in the world. Growth for Whole Foods through the years with mergers and acquisitions has resulted in the largest natural food supermarket in the United States. Whole Foods Markets currently owns over 310 stores, with over 62,000 employees in the United States, Canada, and the United Kingdom. In many ways, the company’s success can be traced to their core values summarized by their slogan, “Whole Food, Whole People, Whole Planet.”

The Whole Foods Market offers a complete line of products that are natural and/or organic. Their products are monitored to be sure they contain no artificial sweeteners, additives, colorings, or preservatives. The meat and poultry are inspected and tested to be sure there are no antibiotics or growth hormones used. They specify quality standards for all their products because they want their foods to be the freshest, the best tasting and safe to consume. Whole Foods Market products include: Fresh Produce, Seafood, Meat and Poultry, Grocery, Bakery, Catering and prepared foods, Specialty (beer, wine, and cheese), nutritional supplements, vitamins, body care, books and other educational products, flowers, pet products, and household products. Whole Foods Market desires to be the one market that provides every need.

Analysis

There are a number of effective strategic moves that Whole Foods Market has put into place that has contributed to its success:

• Quality Standards and Customer Commitments

Whole Foods Market is in the business to “sell the highest quality foods we can find at the most competitive prices possible.” The company makes it a priority to evaluate the food choices it makes and ensure that these foods rate highly in terms of nutrition, freshness, appearance, and taste, while maintaining a list of unacceptable ingredients for the foods they sell. They also guarantee their products 100 percent and strive to make the shopping experience of their customers a fun and enjoyable adventure. Another strategic move geared towards a commitment to its customers is the size and scope of many Whole Foods Market stores. Over 100 of the stores opened since 2000 have averaged 48,000 square feet with 18 of these stores being over 60,000 square feet. It is also common in a Whole Foods Market store to see mini-restaurants, pastry chefs, oven-ready items prepared by in house chefs, juice bars, fresh cut and exotic flowers, household items, and free wireless Internet access among many, many other extras for the customer.

• Merchandising

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