Sample1

In: Business and Management

Submitted By kriskrss
Words 1218
Pages 5
Date: To:

26 January 2011 Mr. John Mackey, CEO Whole Foods Market , SVP Corporate Strategy Group Interim Strategic Analysis

From:

RE:

In response to our conversation on January 19, I have prepared a strategic analysis to assess the current competitive position of Whole Foods Market in the retail grocery and organic food industries. As you are aware, the US food industry is intensely competitive with firms ranging from corner store shops up through national retail chains. In recent years, there has been an increased focus on healthy living as characterized by exercise, mental wellness, and eating healthy and organic food. In addition, concerns over food safety, particularly the use of pesticides and other chemicals, has gained media attention and caused some consumers to shift their purchase habits toward organic and natural products.1 If the government implements stricter food production policy, Whole Foods should expect an additional increase in sales. Lastly, a growing awareness of the food supply chain sustainability from the producer to the retail store has also attracted some customers to our stores. Whole Foods enjoys as loyal customer base because of our unique position as a national organic food retailer. We have seen an increase in middle aged and older customers shopping at our stores, in line with the aging US population. These customers tend to have higher discretionary spending and can afford to pay the premium price for organic groceries. On the other end of the age spectrum, we are starting to grow our base of twenty to thirty year old professionals who are conscious about eating healthy and responsibly produced food. These younger customers and other parts of our customer base are sensitive to macroeconomic changes; Whole Foods saw relatively flat sales at $8 billion during the recession in 2008 and 2009 with an increase in sales revenue…...

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