Introduction

Whole Foods Market is a supermarket chain established in Austin, Texas, in 1980. It

has expanded rapidly into 497 stores mainly in the U.S with a few locations in Canada
and England. Whole Foods Market differentiates itself as a supermarket with
selective, high quality, and organic products by offering a broader range of services
at higher prices. Its target customers are upper-middle-class people who appreciate
the value of natural foods and are conscientious about the environment. Historically,
Whole Foods Market has attained organizational growth and geographic expansion
through mergers and acquisitions of other grocery stores. The reason for researching
Whole Foods Market is because it has been acquired by Amazon.

Based on the Whole Foods Markets website, the core values are the following:

"Satisfying and Delighting Our Customers and Supporting Team Member Happiness
and Excellence." It has created a strategy that fits with the popular consumer trend
towards "living green" and the increasing popularity for consuming local, sustainable
products, which has enabled the supermarket's growth. However, there are some
challenges that come with the competitive nature of the retail industry as organic
and natural food have become more common and less pricey with more suppliers.
Just a few months before the acquisition by Amazon, Whole Foods was pressed by
restless investors and therefore changed its CFO, along with the other 5 directors, to
improve operations and cut costs. In the words of The New York Times , Whole Foods
was "facing the greatest crisis of confidence in its 37-year history" (Tsang, 2017).
Thus, did the acquisition help Whole Foods' situation?

SWOT Analysis
The most prominent strengths of Whole Foods Market is the high quality of
products, customer satisfaction, passionate staff, and promotional blogs, which build
a strong brand image for the company. Such a brand image allows Whole Foods to
differentiate itself from its competitors as well as attract a larger consumer base. In
contrast, some of the key weaknesses of Whole Foods Market include weak
international operations, lack of advertisement, and high risk for market uncertainty
as the company relies on local markets to supply organic products. Moreover, the
pricing is viewed as a luxury shopping destination focused on high quality and higher
cost products, which may be a risk factor when consumers are price-sensitive.

Importantly, there are many opportunities at Whole Foods Market. It had the ability
to sponsor more town events to expand their network, increase brand name through
corporate social responsibility, and take advantage of the natural food trend to
promote to customers to be more health-conscious. In addition, it is also possible to
try to reduce the competition's presence by opening new stores, focusing on
expanding the prepared foods industry and utilizing organic perishables into drinks
to create higher profit margins.

It is also important to be aware of the threats and intense competition in the

industry. Major competitors, such as Walmart and Kroger, have increased their
investment in technology and delivery to gain advantage and brand recognition over
Whole Foods with more stores in rural areas. Market saturation is also a big threat as
there is a limited amount of neighborhoods with the socio-economic status to afford
the price levels Whole Foods offers and the desire to buy directly from the producers.
Changes in government regulations and new policies on organic food would impact
the company even further.