Posted: August 2nd, 2022

Business Management

 

Select a company and learn about its history. This will prepare you for your Wk 2 Analysis.

Note: Some reports are more recent than others. It’s in your best interest to find a company with a recent (within 2 years) report.

Select 1 global company from “Business Source Complete: SWOT Analyses” located in the

University Library

to use for the next 5 weeks (this will sometimes be referred to as “your company”).

Create a chart or outline that conveys the following information:

  • Name of company
  • Industry
  • Brief history of company
  • At least 3 milestones from the company’s history
  • 3 resources (in addition to Business Source Complete) where you can locate company information in future weeks. This may include company websites, current employees, journals, etc.
  • Define 1 new unique business opportunity the company can do to increase their competitive advantage.
  • Identify a function of management that is needed for this opportunity.

COMPANY PROFILE

Whole Foods Market
Inc

REFERENCE CODE: BD72666B-7DBD-4CB9-A94F-4FDC7997ECA7
PUBLICATION DATE: 20 Apr 2022
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Whole Foods Market Inc

TABLE OF CONTENTS

Whole Foods Market Inc
© MarketLine

Page 2

TABLE OF CONTENTS

Company Overview ………………………………………………………………………………………….. 3
Key Facts …………………………………………………………………………………………………………. 3
SWOT Analysis ………………………………………………………………………………………………… 4

Whole Foods Market Inc

Company Overview

Whole Foods Market Inc
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Page 3

Company Overview

COMPANY OVERVIEW

Whole Foods Market Inc (Whole Foods Market), a subsidiary of Amazon.com Inc, is a natural and organic
foods supermarket chain. The company’s product portfolio comprises packaged goods, bulk, frozen,
dairy, meat, bakery, prepared foods, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins,
body care, pet foods, and household goods. Whole Foods Market offers a variety of natural and organic
products including non-GMO, vegan, gluten-free, dairy-free and other special diet foods under the brands
such as Whole Foods Market, 365 Everyday Value and Whole Trade. It also sells its products through
online and mobile apps. The company has store operations in the US, Canada and the UK. Whole Foods
Market is headquartered in Austin, Texas, the US.

Key Facts

KEY FACTS

Head Office Whole Foods Market Inc
550 Bowie Street
Austin
Texas
Austin
Texas
USA

Phone 1 512 4774455
Fax 1 512 4827000
Web Address www.wholefoodsmarket.com
Revenue / turnover (USD)
Financial Year End
Employees 105,000
Ticker

Whole Foods Market Inc

SWOT Analysis

Whole Foods Market Inc
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SWOT Analysis

SWOT ANALYSIS

Whole Foods Market Inc (Whole Foods Market) is a natural and organic foods supermarket chain. Store
network, synergy with parent company, and focus on quality are the company’s major strengths, even as
weak international presence and product recalls remains causes for concern. Positive outlook for e-retail
industry in the US, food and grocery retail industry in North America, and store expansions are likely to
offer growth opportunities to the company. However, labor wages in the US, intense competition and
stringent regulations could affect its business operations.

Strength

Store Network

Synergy with Parent Company

Focus on Quality

Weakness

Product Recalls

Weak International Presence

Opportunity

Food and Grocery Retail Market in North America

Positive Outlook for E-Retail Industry in the US

Store Expansions

Threat

Intense Competition

Stringent Regulations

Labor Wages in the US

Strength
Store Network

The company sells its products through physical and online stores and mobile application. It operates 526
stores including 505 in the US, 14 in Canada and seven in the UK. The company conducts its store
operations through offices in Massachusetts, Maryland, New Jersey, Florida, Georgia, Illinois, Texas,
Colorado, Washington, and California, the US. It also operates through offices in the UK and Canada.
Whole Foods Market has produced and floral procurement offices in California, the US and London, the
UK. It owns and operates seafood processing and distribution facilities, and specialty coffee and tea
procurement and roasting centers.

Synergy with Parent Company

As a part of Amazon.com Inc (Amazon), the company gains significant operational advantages. Amazon
offers apparels, auto and industrial items, beauty and health products, electronics, grocery, books,
games, jewelry, kids and baby products, movies, music, sports goods, toys, tools and other related
products. Amazon has a strong brand identity in the global markets and is a leader in online retail market.
With about 1,271,000 employees in more than 30 countries, Amazon sells its products and services both
online and physical stores. It has been delivering the solutions suitable to customer needs leveraging
latest technologies across its processes, providing enhanced customer service. Whole Foods Market
benefits considerably from the operational, distributional and technological expertise of its parent

Whole Foods Market Inc
SWOT Analysis

Whole Foods Market Inc
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company. The company also benefits through synergy with the parent company in the fields of online
marketing, product placement, business strategies and inventory management.

Focus on Quality

Whole Foods Market focuses on quality management in both product manufacturing and business
processes. The company purchases and sells food products that meet Government’s organic standards.
It purchases products from wholesale suppliers that meet their product quality standards. Whole Foods
Market being a USDA-certified organic national grocer sells organic and natural products.

Weakness
Product Recalls

Product recalls create a negative impact on the company’s brand image and may also result in decease
in customers’ confidence on the company and effect its growth. The company recalled some of its
products in the past. In March 2021, the company recalled Cranberry Biscotti at 6 Whole Foods stores
due to undeclared allergens. In December 2020, FDA issued a warning to Whole Foods after the
company voluntarily recalled more than 30 products over a 13-month period from October 2019 to
November 2020. In July 2020, the company recalled Whole Foods Market Spinach Artichoke Dip.

Weak International Presence

Whole Foods Market has operations across the US, Canada and the UK, generating majority of its
revenues from the US. Whole Foods Market has limited presence in the UK and Canada. In a competitive
environment, high dependence on few markets not only exposes Whole Foods Market to the vulnerability
of local market conditions but also limits the growth opportunities. Besides, the company is deprived of
the economies of scale and benefits which its competitors realize because of their global operations.

Opportunity
Food and Grocery Retail Market in North America

The company stands to benefit from the positive outlook for the food and grocery retail market in North
America. According to in-house research, the food and grocery retail industry in North America is forecast
to reach US$2,986,097.6 million by 2023. The US accounts for 87.1% of the retail market value, followed
by Mexico with 7.8% and Canada with 5.1% during 2023. Food is the largest segment of the market in
North America, accounting for 71.3% of the value, followed by drinks (21.9%), tobacco (5%), and
household products (1.8%). Hypermarkets, supermarkets and hard discounters accounted for 65.4% of
the food and grocery retail industry in North America, followed by Convenience stores and gas stations
with 13.5%, cash and carry and warehouse clubs with (3.5%), value, discount and general merchandise
retail with 3.2%, and other with (14.5%).

Positive Outlook for E-Retail Industry in the US

Whole Foods Market Inc
SWOT Analysis
Whole Foods Market Inc
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Whole Foods Markets sells its products through online stores. The company stands to benefit from the
growing online retailing in the US, which provides consumers the convenience of shopping from home.
With the increase in interactive methods and limitless content, the retail e-commerce is growing at a faster
rate. According to in-house research, online retail sector in the US is forecast to reach US$636.1 billion
by 2023 from US$368.5 billion. Online Pureplay form the leading distribution channel in the United States
online retail sector, accounting for a 53.3% share of the total sector’s value, while Multi-Channel Retail
accounts for a further 46.7% of the sector. The US accounts for about 30.9% of the global online retail
sector value. The retailing of electrical and electronic goods was the largest segment in the sector in
2018, which accounted for 32.7% of the total value, followed by apparel retail (21.2%), home and garden
products (16%), food and grocery retail (8.7%), furniture and floor coverings (7.1%), footwear (4.1%) and
other category accounted for 10.2% of the value.

Store Expansions

The company’s focus on new store openings increases its customer reach and sales. In July 2021, the
company opened its new store in Tampa, Florida, the US. In June 2021, the company announced to open
new store in Portsmouth, England, the UK. In the same month, the company announced to open new
store in Tampa, Florida, the US. In May 2021, the company announced its plan to open 43 stores within
California. In March 2021, the company announced to extend its wholesale grocery distribution
partnership with United Natural Foods. In February 2021, the company opened a new store in Boulder,
Colorado, the US. In October 2020, the company opened a new store at 14311 Ventura Blvd. in Sherman
Oaks, California, the US. In July 2020, the company opened a new store in Washington, D.C. This store
provides local products, variety of organic and natural grocery items and plant-based fast-casual concept.
In the same month, the company opened a new store in Manhattan.

Threat
Intense Competition

Whole Foods Market operates in a highly competitive retail market. The factors that determine the level of
competition within the industry include service performance, price, and sales and distribution capabilities.
Whole Foods Market faces competition from Albertsons Companies Inc, Asda Stores, Costco Wholesale
Corp, Marlow Foods Ltd, Publix Super Markets Inc, The Kroger Co, Winn-Dixie Stores Inc, Walmart Inc,
Trader Joe’s Co and Weis Markets Inc. Apart from established players in developed countries, players
from emerging countries are also competing hard to garner greater market share. Many of its competitors
have a longer operating history, greater brand recognition, established customer and supplier
relationships, and greater financial resources, which could lead to the creation of innovative products and
business expansion through acquisitions.

Stringent Regulations

As Whole Foods Market operates in the natural and organic foods market, its stores and products are
subjected to various laws and regulations. Whole Foods Market is required to comply with provisions
regulating health and sanitation standards, food labeling, equal employment, minimum wages, and

Whole Foods Market Inc
SWOT Analysis
Whole Foods Market Inc
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licensing for the sale of food and, in some stores for sale of alcoholic beverages. It is subjected to laws
and regulations related to various federal agencies and departments, including the US Food and Drug
Administration (FDA), Federal Trade Commission (FTC), the Consumer Product Safety Commission
(CPSC), United States Department of Agriculture (USDA) and the Environmental Protection Agency
(EPA). Failure to comply with these standards could result in penalties and seizure of marketing and
sales licenses, which would result in additional compliance costs and effecting the company’s financial
position.

Labor Wages in the US

Increasing manpower costs could have an adverse effect on the company’s margins. The tight labor
markets, government mandated increases in minimum wages and a higher proportion of full-time
employees could result in an increase in labor costs. The federal minimum Labor costs are rising
significantly in the US. The federal minimum wage provisions are contained in the Fair Labor Standards
Act (FLSA). As of January 2021, the minimum wage rate in the US remained at US$7.25 per hour. The
29 states and the District of Columbia have higher minimum wages than the federal wages. These wages
range from US$13.69 per hour in Washington, US$12.32 per hour in Colorado, US$12.15 per hour in
Arizona, US$11.75 per hour in Maryland, US$11 per hour in Arkansas, US$10.50 per hour in New
Mexico, and US$9,25 per hour in Delaware. The minimum wage reached US$13 per hour in California.

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