Wfm Strategic Manament Case

1.0 Introduction

This essay is going to use value chain analysis to identify the activities that implemented by Whole Foods Market (WFM) which is an organic food supermarket to add value for company. The core competency of WFM will be justified which contribute to competitive advantages. Subsequently, value-added activates of WFM will be indicated.

2.0 Value Chain Analysis

Value chain analysis is a technique identifying the value-added activities that customers are willing to pay for and to improve organisations to compete with other rivals (Dess, Lumpkin, Eisner, McNamara, and Kim, 2012). There are two different categories of activities, namely, primary activities and support activities, and each activity includes different elements (refer to Appendix1).

Whole Foods Markets has tried its best to improve the business sustainability by adding value into different element of value chain.

3.0 Core Competency

3.1 Inbound Logistics

Different from other organic supermarkets, such as Trader Joe’s, Sprouts Farmers Market, WFM is not only committed to organic and natural foods, offering highest quality foods which are free of artificial preservatives, colors, flavors, sweeteners and hydrogenated fats is the most concern(Powell, 2006; Whole Foods Market, n.d. a). It is required by WFM that suppliers meet its highest standards within the industry to ensure food quality (Whole Foods Market, n.d. a). WFM established its own Quality Standards team to ensure that all products in WFM stores are the highest quality regarding nutrition, freshness, appearance and taste (Harper, Pequinot, Tisdale, and Werner, 2006).

WFM is sourcing fish from the suppliers who adhere to sustainable basis of fishing practices approved by the Marine Stewardship Council (Murray, 2004).For example, in Sitka, Alaska, WFM only purchases the fish from suppliers who catch fish one by 

one instead of commercial net fishing which can hurt fish skin and quality (CNBC, n.d.).

Beside the high seafood standards, WFM adheres to animal welfare rating standards. Any animals treated with antibiotics or antimicrobials, cloned are not allowed selling in WFM (Animal Welfare Standard, n.d.).

Additionally, WFM influences and encourages suppliers to use better material which can ensure the safety of products for customers. For example, they persuade their suppliers to use other safe materials instead of BPA-containing materials (Bisphenol-A,n.d.).

3.2 Operation

WFM has its own organic and natural brand products which meet the strictest standards for quality, sourcing, environmental impact and safety, such as “365 Everyday value” (Tillotson, 2006). Comparing with Wal-Mart which targets on low price strategy,