Introduction
Whole Foods Market 2007: Will There Be Enough Organic Food to Satisfy the Growing Demand is a case study that seeks to explore the future direction of the Whole Foods Market Chain. John Mackey had begun the supply of natural food chain in a single store and had succeeded in the business (Patricia, & Allan, 2007). Although he was proud of his past achievements, he was concerned about the future of the Whole Foods Market Chain. The market had acquired the Wild Oats Food Chain which made it to operate a 100 full service stores in twenty four states and Canada. Since they were experiencing a competitive industry landscape and changing economy, they were uncertain about how they would meet the company’s aggressive growth targets (Patricia, & Allan, 2007). In this connection, there was need for the company to focus on the future of its market in order to meet its growth target.
Synopsis of the situation
Whole Foods Market had a growth target of reaching a $12 billion revenue from over 300 stores by the year 2010 (Patricia, & Allan, 2007). However, the company did not want to sacrifice its product quality and the current reputation. It was not easy to meet such a target and thus John Mackey did not know the best approach to use in order to meet the company’s target. Whole Foods Market offered both natural and organic foods to diverse customer base. The natural foods were free from antibiotics while organic foods conformed to the standards set by America’s agriculture department. In addition, the company focuses on operating without devaluing human integrity. The company works hard towards meeting its market target as an industry. Each of the company’s departments allows its employees to make independent decisions regarding its operations (Patricia, & Allan, 2007). Currently, the company is facing competition due to the changing grocery industry. The company thus seeks to achieve its set targets by using a good market chain.
Key Issues
One of the key issues at Whole Foods Market is that the company intends to reach $ 12 billion revenue with over three hundred stores without lowering the quality and current reputation of its products. The company is mission driven and thus it selects what to sell and embarks on quality products and sustainable agriculture (Patricia, & Allan, 2007). Another key issue facing this company is competition. High competition has risen from the grocery stores but the company still remains competitive. It has good customer and employee relations and still wants to take care of its clients by realizing that the clients are the main assets of its business. The main issue in Whole Foods Market involves establishing the best approach which will help in meeting the company’s aggressive growth targets.
Define the Problem
Whole Foods Market is a company that is experiencing growth in competition. The major problem in this company is that the company does not know the best approach that will help it to meet its aggressive growth targets (Makki et al. 2011). The company is striving to fulfill its vision within the context of the industry without lowering its product quality and standards. There is increased demand for organic and natural foods which puts more pressure on Whole Foods Market as the company strives to meet the demands of the increased number of clients. In addition, Whole Foods Market is facing competition from the growing number of grocery stores which are now selling natural foods in their stores. In this connection, Whole Foods Market has to look for means of solving its problem in order to achieve its mission.
Alternative Solutions
Although Whole Foods Market is facing a problem of choosing the right strategy to meet its aggressive growth targets, the company has different alternative solutions to meet its vision. Whole Foods Market offers a different shopping experience to its clients, which helps it to remain competitive. This is because, it has a good setup with products that are well researched in order to meet the needs of the local community (Michael et al, 2010). The other alternative solution for this company is that it has well trained staff who may also offer extra services such as home delivery and parking for the customers. Whole Foods uses pricing as a marketing tool in order for it to remain competitive in the market. Other alternative solutions include getting involved in charitable contributions and improving awareness concerning animal treatment.
Selected solution to the problem
The selected solution for the problem is to expand market and maintain the quality and standards of the products of the company. This would be achieved by changing the grocery-shopping experience for the clients by ensuring that the products are healthy (Michael et al, 2010).
Implementation
The solution of the Whole Foods Market was implemented by expanding organic and natural food offerings in order to meet the aggressive growth targets. The company expanded its supply of products because it purchases its stock from regional and national suppliers (Gary, 2009). This has enabled the company to leverage its size in order to get higher discounts and meet the expanded customer needs. The company is providing a wide range of products to its customers while maintaining the quality of products in order to meet diverse customer requirements.
Recommendations
It is recommended that Whole Foods Market opens more branches in different areas in order to meet the needs of its diverse customers (Gary, 2009). It should also establish its presence in big cities where the target market resides. Due to the increased growth of demand for the organic products, Whole Foods Market should look for alternative supply in order to ensure consistency in supply. The company should therefore be prepared for any changes in the supply of its products to ensure that such changes do not affect its operations.
Conclusion
Whole Foods Market is a company that supplies natural and organic foods in America. It is the largest company dealing with the supply of organic and natural foods. Its success has come as a result of its competitiveness in the market. Though the company enjoys a large customer base, it does not know the best approach which will help it to meet its aggressive growth target. However, by expanding its presence in new cities and maintaining quality products and high standards, the company will achieve its vision. In order to achieve its mission, the company offers a good shopping experience to its clients. The main solution to its problem is to expand its market and maintain high quality products. It is recommended that the company opens more branches in the cities in order to meet the needs of its growing customer base. This will help the company to remain successful in the market.
References:
Gary, H. (2009). Creating a Community of Purpose: Whole Foods Market: Management Innovation in Action. Harvard: Harvard Business School Press
Makki, L. et al. (2011). Whole Foods Market, Inc: A Case Study: Looking into the Future of Whole Foods Market. New York: Createspace Publishers
Michael, E. et al. (2010). Strategic Management & the Global Environment: Case Study: Whole Foods Market. New York: Michael Lappellere
Patricia, H. & Allan N. (2007). Whole Foods Market 2007: Will There Be Enough Organic Food to Satisfy the Growing Demand? Whole Foods Market 2007.
