As we know from the last class that, Whole food market, one of the oldest organic market and grocery industry is losing its popularity these days. Due to many new food markets such as Walmart, shop Rite, Giant, and local food market are the main barriers. These food grocery stores are giving food on a cheaper rate and are in a convenient location due to which people are more attracted towards it.
The profitability of grocery stores is 16 % which is 1 % higher than the average of Return on invested capital. (Porters, 2008, Page 5) And that means five forces of competition is relatively gentle that could make good profits if grocery stores could hold its customers. (Porter, 2008, Page 2)
One of the external analysis in Whole Food Market case study is Porter’s five forces of competition. (Martrous, 2016, Page 24) The five forces are bargaining power of buyers (low as the consumers buy substitute products locally with low price), bargaining power of suppliers (still low compare with the growing grocery market), threats of substitute products (high as the organic products price is higher than regular grocery items), threats of new entrants (low as big market already acquires the good location with good reputation), intensity of rival (high as supermarket and grocery industry provides foods in lower prices than organic products). (Martrous, 2016) This conclude that the organic foods are little bit expensive and the consumers reacts products with the price.
Similarly, Martrous use the SWOT analysis during the internal analysis of the Whole Food Market at the Case Study. (Martrous, 2016, Page 26) In the case study of the Martrous, increasing demand of organic products and health conscious consumers is the opportunity, substitute supermarket competitors, strong rules and regulation for organics foods is the threats, high quality grocery product is the strengths and weak international operation, very few marketing is the weakness of the Whole Food Market. (Martrous, 2016) This conclude that the Whole Food Market strengths is the organics grocery product for the health-conscious consumers.
The whole food market case study suggests to (Martrous, 2016, Page 48)
- Increase rapidly in advertisement and make good bonding with public (strategic recommendation)
- Favorable store size according to the market location. (strategic recommendation)
- Sustaining competitive advantage (tactical recommendation)
- Find new opportunities in organic way (tactical recommendation)
As we all know that, the people in the present condition is more health-conscious day by day. And they put high amounts of money in Gyms, and other devices to reduce fats, and to maintain healthy body and life. (Changing Your Habits for Better Health, 2017) And of course, as we know the strongest point of the Whole food market is the organic products which is little bit expensive than the regular products. Thus, if the whole food market could provide more information about the organic foods advantages and importance to the health-conscious consumers they might increase their sales with good reputation in the market that might bring the new customers.
So, I choose the advertisement, sustained competitive advantage and find new opportunities recommendations that can attract more health-conscious customers and maintain its brand name as an organic product.
And here is the main part, how technology helps to implement this recommendation.
Firstly, technology can help the Whole Food Markets advertisement via internet. As we all notice that each time while surfing on web, we see various types of advertisement appearing all the time. These days has become so advance that whatever thing we search, like, watch on the web, related advertisement will appear in the browser, mobile app, video and social media. Thus, technology helps the Whole Food Market to find the perfect customers (heath conscious customers). More preciously, mobile advertisement with the brand name focusing on the organic products as most people surf internet from mobile. Online advertisement has been so advance that it will find the audience that the Whole Food Markets looking for. Similarly, advertising with different rewards programs like fuel rewards, earn points, cash back rewards and many more in online and in convenience area like shopping mall will bring new customers and holds the current customers. (Technology is Changing the Advertising Business, 2001)
Secondly, to sustain competitive advantage whole food markets could use the technology for better shopping experiences with delivery method at home or pick-up at store using the friendly Whole Food Market App. Company might add many offers for online orders and rewards points, so the health-conscious customers remain holds and brings the new customers also. (Poter & Miller, 1985)
Thirdly, Whole Food Market uses technology for different methods for new opportunities focusing on organic way. for instance, the company could conduct the survey on the topic like importance, nutrition facts, energy, between the organic foods and others. Also, focusing advertising specially in the importance of the organic foods for better health outcomes by interview the regular customers, doctors and others health related persons. (Volpe, 2008) Moreover, sponsoring in the community games, activities and programs so they community know about its importance. (Martrous, 2016)
References
National Institute of Diabetes and Digestive and Kidney Diseases. (2017) Changing Your Habits for Better Health. Retrieved form, https://www.niddk.nih.gov/health-information/diet-nutrition/changing-habits-better-health
Wharton University of Pennsylvania. (2001) Technology is Changing the Advertising Business. Retrieved form http://knowledge.wharton.upenn.edu/article/technology-is-changing-the-advertising-business
Proter, E.M, & Millar, V.E, (1989) How information gives you competitive advantage. Harvard Business Review. Retrieved form https://hbr.org/1985/07/how-information-gives-you-competitive-advantage
Volpe, L., (2008) How to sustain your competitive advantage. Forbes. Retrieved from https://www.forbes.com/2008/04/07/cisco-dell-netflix-ent-manage-cx_lv_0407volpecompetition.html
Porter, M.E., (2008) The five competitive forces that shape strategy. Harvard Business Review. Retrieved from https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy
Martrous, B. (2016) Whole Foods Market Case Analysis. Stanislaus Scholar Works. Retrieved fromhttps://scholarworks.csustan.edu/bitstream/handle/011235813/1049/MartrousB.spring2016.pdf?sequence=1