Thursday, April 25, 2019
Competitive Forces and SWOT Analysis Case Study
Competitive Forces and SWOT Analysis - Case landing field ExampleThis paper will also discuss the most significant threat to the Whole Foods market, and explicate how this company can employ its opportunities and force plays to attain a sustained competitive lead in the market. In addition, this article will include a complete SWOT analysis, and also identify opportunities and threats facing the organization. interview 1 Trends in retailing of essential fodders and its impact on the Whole Foods Market There is a variety of trends in the retailing of organic foods. These trends impact the Whole Foods industry and the market at bear-sized tremendously (Steve, 2002 1). Sales of natural products across all retail and directly to consumer channels have great(p) to about $68 billion in the year 2008 a 10% increment over the anterior year. The congress passed an act on organic foods production in 1990. USDA established standards that were official for organically grown products in the United States by regulating agencies responsible for labeling of organic products (Steve, 2002 3). 31% of organic food sales were interchange by mainstream supermarkets, 22% by means of sovereign small store chains, and 24% through leading food stores. Some of the top processors of organic foods in the market are General Mills, Kraft, Heinz, Kelloggs, dean Foods, Campbell soup, Hunt, Tyson foods, Coca cola and Del Monte (Porter, 1980 295). Research carried out by the USDA depicts that, in 2000, surplus organic products were sold in conservative supermarkets than in the ordinary food stores (Thompson, Strickland & Gamble, 2010 23). Most of the common organic foods sold included wine, pasta, beef, yogurt, vinegar, canned fruits and vegetables, apples, tomatoes, cucumbers, broccoli and lettuces among others. Despite the fierce competition in the price of organic products, consumer demands ease remain high. The factors that have increased demand for organic products include heal th consciousness, healthy eating patterns, consumer concerns, soil, and water. doubtfulness 2 Assess the competitive situation of the firm by applying Porters model and hence, give out each aspect relative to the business Porters five forces analysis comprises of a theoretical account for industry analysis and business strategy development (Porter, 1980 215). Porter refers to these forces as the micro environment. He certain these five forces in reaction to the then-prominent SWOT analysis, which he identified as ad hoc and un-rigorous (Fine, 2009 3). These forces have been apply in enterprises so as to stabilize them hence, making them more economic. These forces include intensity of competitive rivalry, try of new competition, bargaining command of customers, bargaining supremacy of suppliers, and risk from substitute services and products. Most profitable markets yield substantial returns that attract other new firms. The fresh foods market earned over $350 trillion in 20 08. Moreover, the Whole Foods achieved sales worth $6.5 billion in the same year (Thompson, Strickland & Gamble, 2010 14). The competitive strength and strategy of the Whole Foods high society immensely attributed to success in their sales. Over 90,000 items were sold to consumers from the Whole Foods Company which had 284 stores in that period (Thompson, Strickland & Gamble, 2010 20). This company was facing slight competition from the Fresh Markets Company where some products were world substituted for others by the customers. The
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