whole foods # 2

whole foods # 2 - Whole Foods Market 1 Running Head: WHOLE...

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Whole Foods Market 1 Running Head: WHOLE FOOD MARKET Whole Food Market Sheri Johnson Dr. James Glenn BUS 599-014016 October 23, 2010 Assignment 2 Abstract This paper will explore articles that I research that I conducted from online articles and material that I read from the book. This paper will discuss the trends in retail of organic foods, evaluate the competitive environment of the firm, discuss which environmental factor poses biggest threat, and complete a SWOT analysis, and lastly discuss how Whole Foods can compete in a
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Whole Foods Market 2 competitive market. Organic foods now occupy prominent shelf space in the produce and dairy aisles of most mainstream U.S. food retailers. The marketing boom has pushed retail sales of organic foods up to $21.1 billion in 2008 from $3.6 billion in 1997. U.S. organic-industry growth is evidencing an expanding number of retailers selling a wider variety of foods, the development of private-label product lines by many supermarkets, and the widespread introduction of new products. SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a business, such as Whole Foods. 1. The trends in retailing of organic foods and the impact that the trends have on Whole Foods Market, one factor that consistently influences the likelihood of a consumer’s buying organic products is education. Consumers of all ages, races, and ethnic groups who have higher levels of education are more likely to buy organic products than less-educated consumers. Other factors, such as race, presence of children in the household, and income, do not have a consistent effect on the likelihood of buying organic products. ( Carolyn Dimitri and Lydia Oberholtzer, 2009). Retailing of organic products has evolved since 1997, when natural foods stores were the main outlet. By 2008, nearly half of all organic foods were purchased in conventional supermarkets, club stores, and big-box stores. Although produce remained the top-selling organic category, sales of dairy products, beverages, packaged and prepared foods, and breads and grains
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Whole Foods Market 3 grew to 63 percent of total organic sales in 2008, from 54 percent in 1997. On the wholesale level, by 2007, the share of organic handlers’ sales to conventional retailers and club stores had increased, while the share of sales to wholesalers and other distributors had declined. Organic handlers are firms that buy organic products from farmers and other suppliers, process or repack the goods, and then sell the value-added resulting products to retailers, institutions, and other handlers, or directly to consumers or restaurants. Because of the competition for organic ingredients, handlers in recent years have relied on contracts versus spot-market sales to procure needed inputs. While organic farmland increased from 1997 to 2005, growth was not swift
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This note was uploaded on 03/13/2011 for the course BUS 599 taught by Professor Bogwell during the Spring '10 term at Strayer.

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whole foods # 2 - Whole Foods Market 1 Running Head: WHOLE...

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