Whole Foods Case Study

Market Analysis

Paris is the capital city of France, located in the northern region, and situated on the river Seine. Paris's location is prime for transportation via the river ways, paved roads and highways, and the many local and international airports. It is currently one of the largest metropolitan areas in Europe, in both size and population, and it is a major tourism destination for travelers around the world. Today, Paris is one of the world's leading business centers, and therefore has influences in science, politics, education, entertainment, fashion and media. "With a GDP of $2.66 trillion, France is the world's fifth-largest economy." (state.gov) Paris possesses essential resources for supply chains including agriculture, industrial manufacturing, and a highly educated work force.

France has a stable republican government and is a member of NATO and the United Nations. France is also the second-largest agricultural producer in the world behind the United States, with whom they have strong trade relations. "France was one of the earliest countries to progress from feudalism to the nation-state." (state.gov) Due to the educational infrastructure, Paris is home to a population comprised of highly educated workers, which creates higher income levels and greater access to disposable and discretionary income. Availability of these types of income is what allows Whole Foods to operate.

Paris Ouest, pronounced "Paris West", is a section of town comparable to Bell Meade and Green Hills in Nashville, or to Hollywood in Los Angeles. This part of the city is associated with great wealth, accomplishment, and social elitism. These are the target consumers that can afford to pay a premium for organic food.

Competitive Analysis

In today's business world having a competitive advantage is a must. Whole Foods Market has been the top retailer of natural and organic foods. Until recently, Whole Foods Market has not had much competition in the natural and organic food industry so they could charge higher prices for their products. The majority of their stores are located in higher income neighborhoods so the people living in these areas can afford to pay these high prices. Smaller organic food stores such as Natural Grocers, Trader Joe's, and True Foods Market do not bring in the revenue to compete with Whole Foods Market.

Recently people have become more concerned about their health and well being. They are watching what kind of foods they eat and with all the pesticides that are put on produce, people would prefer to eat natural and organic food even if it means paying more. Whole Foods Market has become so popular because they sell these natural and organic foods that they are becoming saturated in the market.