Business Case Studies, Growth Strategies Case Study, Whole Foods Markets, Growth Dilemmas

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Case Title:

Whole Foods Markets: Growth Dilemmas

Publication Year : 2004

Authors: Srinath Manda

Industry: Food, Diary and Agriculture Products

Region:USA

Case Code: GRS0044

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Whole Foods Markets Inc (Whole Foods), started in 1980 in Texas, US, successfully tapped the growing interest of American consumers in 'organic foods', and went on to emerge as the world's largest organic foods retailing chain by 2000. With operations spread across North America and the UK, the chain is popular for its products, philosophy and growth. But competition is increasing from similar store chains, regional food retail chains and also the world's leading retail chains. Whole Foods' growth is credited to its founder John Mackey, who is now facing the challenges of withstanding the growing competition from global giants and retaining the good show of the company in terms of growth and profits. There are other challenges in the form of employee unrest, sourcing bottlenecks, and protests from consumer interest organisations.

Pedagogical Objectives:

  • To discuss the inception and growth story of Whole Foods from a single store to a market leading chain of stores
  • To discuss the profile of the organic foods market and the industry dynamics, along with the competitive scenario for Whole Foods.

Keywords : Organic foods; Natural foods; Whole foods; John Mackey; Corporate Strategies Case Study; Organic farming; Wal-Mart; Competition in the US grocery market; Rise of organic foods; USDA (United States Department of Agriculture) organic labeling; National organic standards; Wild oats markets; Growth challenges

Contents: 
Introduction
A Wholesome Beginning
Rise of Organic Foods
The Competition Scenario
Challenges Ahead for Mackey andWhole Foods
Organic Food Retail Sales: Figures and Food
US Organic Products Sales in 2003
US National Organic Standards
Economic Concentration of the Top 10 Retail Companies

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