SWOT on "Competitive Forces and SWOT Analysis"
SWOT 4 pages (1257 words) Sources: 2 Style: APA
[EXCERPT] . . . .
Competitive Forces and SWOT AnalysisWhole Foods Market Case Study
Trends in retailing of organic foods
The retailing market is affected by frequent changes that influence the companies activating on this market, and that also influence consumers. The retailing market for organic foods makes no exception. Over the past decade, the organic food market has suffered a series of modifications, most of them leading to the development of this market segment.
For example, since 2000 the country's traditional supermarkets have sold more organic food than the 14,500 natural food stores. Even more, since 2002, most supermarkets have expanded the range of the commercialized organic foods, their display ranging from fresh products to wine, cereals, even cheeses, potato chips, different types of meat, and also canned and frozen fruits and vegetables.
Furthermore the organic product that was preferred by consumers is represented by fresh products, mainly lettuce, carrots, and apples. Other top sellers in the organic foods department include meat, dairy, bread, and snack foods, increased sales volume being reported for these categories in particular. Consumers' increased appetite for organic foods has determined large chains of supermarkets and hypermarkets to create departments specialized for these types of items only.
The organic foods retailing in the U.S. has developed from a niche market to the fastest growing food sales segment because of the modifications that changed consumers' behavior. For example, certain customer segments, like those oriented towards a healthier lifestyle, which includes
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Organic foods sales have increased from $1 billion in 1990 to an estimated $23 billion in 2008. It is expected that sales will increase 18% each year (OTA, 2008). Although sales have decreased in most areas because of the economic and financial crisis, the organic foods sector did not report any sales volume decreases (Hunt & Dorfman, 2009).
Whole Foods Competitive Environment
The threat of substitute products and services
Organic foods can be easily replaced by regular foods. Organic foods do not represent a majority in comparison with other types of foods, which means they are easy to be replaced. Also, the price of organic foods is higher than the price of regular foods, many consumers avoiding to buy organic foods because of their price. Another factor that might disadvantage organic foods in comparison with regular foods is represented by the availability or organic foods. Certain stores do not commercialize organic foods, which are considered to have low availability by customers that do not buy such items.
The threat of the new entry of new competitors
Given consumers' increased interest in organic foods, more and more companies that produce and sell such items enter the market. Some of them are small companies that produce and sell on limited local level, but others are large chains of stores that deal exclusively with organic foods, covering a wider geographical area.
The intensity of competitive rivalry
Some of the company's competitors include: Wild Oats Market, which was the company's toughest competitor before being acquired by Whole Foods, Fresh Market chain, Trader Joe's, Sunflower Farmers, Fresh & Easy Neighborhood.
Whole Foods does not have competitive prices. The company sells premium products at premium prices. These prices are considered unaffordable by certain customers that orient towards other organic foods producers that offer lower prices, even if the quality is lower than that of Whole Foods products.
The company's competitive advantage is based in product quality. Also, the company is able to cover an important geographical area, increasing the number of stores each year.
The bargaining power of customers
On this market, buyers have a relatively low bargaining power. A company… READ MORE
Quoted Instructions for "Competitive Forces and SWOT Analysis" Assignment:
Students are required to conduct an analysis of a company situation Case #1 Whole Foods Market and prepare a 4-5 page, double-spaced report to complete the following:
o Discuss the trends in retailing of organic foods and the impact of these trends on Whole Foods Market.
o Evaluate the competitive environment of the firm: Apply Porter*****s model and analyze each factor relative to the company.
o Discuss which environmental factor poses the most significant threat to Whole Food and what the company can do to combat it.
o Complete a SWOT analysis and identify significant opportunities and threats facing the organization.
o Discuss how Whole Foods can use it strengths and opportunities to achieve a sustained competitive advantage in the marketplace.
The assignment will be graded using the following rubric:
Outcomes Assessed
Analyze the external and internal environment for opportunities, threats, strengths and weaknesses that impact the firm*****s competitiveness.
Grading Rubric for Assignment # 2 *****“ Competitive Forces and SWOT Analysis
Criteria
0
Unacceptable
20
Developing
30
Competent
40
Exemplary
1. Discuss the trends in organic foods and how it may impact Whole Foods.
Does not attempt assignment, nor discusses the organic food trends and it impact on strategy.
The organic food trends were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.
The organic food trends were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.
The organic trends were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.
2. Evaluates the competitive environment using Porter*****s 5 Forces Model.
Does not attempt assignment, nor discusses the competitive environment trends and it impact on strategy.
The competitive environment elements, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.
The competitive environment elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.
The competitive environments were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.
3. Discuss the most significant environmental threat and how Whole Food*****s may combat it.
Does not attempt assignment, nor discusses the most significant environmental threat.
The most significant environment threat was discussed, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.
The most significant environment threat was discussed, with 80 - 89% accuracy and appropriate information was discussed.
The most significant environment threat was discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.
4. Complete a SWOT analysis and identifies significant opportunities and treats.
Does not attempt assignment, nor discusses the SWOT analysis and it impact on strategy.
The SWOT analysis elements were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.
The SWOT analysis elements were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.
The SWOT analysis elements were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.
5. Discuss how Whole Foods can use its strengths and opportunities to achieve a sustained competitive advantage.
Does not attempt assignment, nor discusses how strengths and opportunities can be used to achieve a sustained competitive advantage.
The strengths and opportunities were discussed and the related impact on strategy, but with less than 60 - 79% accuracy and some of the trends identified were inappropriate or were not identified.
The strengths and opportunities were discussed and the related impact on strategy, with 80 - 89% accuracy and appropriate information was discussed.
The strengths and opportunities were discussed and the impact to strategy with 90 to 100% accuracy and all appropriate information was identified and discussed clearly.
6. Clarity
Did not complete the assignment or explanations are unclear and not organized.
(Major issues)
Explanations generally unclear and not well organized.
(Many issues)
Explanations generally clear and/or organized. (Minor issues)
Explanations very clear and well organized.
(Added helpful details.)
7. Writing *****“ Grammar, sentence structure, paragraph structure, spelling, punctuation, APA usage.
Did not complete the assignment or 8 or more different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Major issues)
6 - 7 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Many issues)
4 - 5 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. (Minor issues)
0 - 3 different errors in grammar, sentence structure, paragraph structure, spelling, punctuation or APA usage. *****
How to Reference "Competitive Forces and SWOT Analysis" SWOT in a Bibliography
“Competitive Forces and SWOT Analysis.” A1-TermPaper.com, 2010, https://www.a1-termpaper.com/topics/essay/competitive-forces-swot-analysis/4064002. Accessed 6 Jul 2024.
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