MGMT 615- Strategic Management

MGMT 615- Strategic Management

Student 1 Response to Discussion Question 3.1

Pertinent Management Issues The pertinent management issues of Whole Foods Market is to ensure the organization maintains its competitive advantage despite the economy. As discussed in the case study, the decline in the economy had negative impacts on the growth and competitive advantage of the organization. Leaders in Whole Foods Market should continue to focus on their current strategy and examine ways to maintain their competitive advantage.

Analysis and Evaluation

Five Forces Model:

According to Thompson, Strickland, and Gamble (2012), the strategy of Whole Foods Market best aligns with a focused differentiation strategy. A focused differentiation strategy is “concentrating on a narrow buyer segment and outcompeting rivals with a product offering that meets the specific tastes and requirements of niche members better than the product offerings of rivals” (Thompson et al., 2012, p. 136). More simply put, the strategy of Whole Foods Market is a focus on a narrow buyer segment offering unique, differentiated products.

Market Target:

A focused differentiation strategy aims at securing a competitive advantage with a product designed to appeal to a specific group of buyers (Thompson et al., 2012). The specific group of buyers Whole Foods Market works to satisfy are those who have particular interest in natural and organic foods. Whole Foods Market has a strategy that will “help support the health, well-being, and healing of people (customers and Team Members) and of the planet” (Thompson et al., 2012, p. C-10). Additionally, Whole Foods Market places emphasis on customer satisfaction through the second of seven core values, “satisfying and delighting our customers” (Thompson et al., 2012, p. C-11). Whole Foods Market secures their buyers by strategic placement of stores, choosing upscale areas of urban metropolitan locations with high-traffic shopping.