Q1
The fresh food industry is mainly characterized by high production costs and therefore, the industry players are unable to offer good prices for their products. Whole Foods Market has succeeded in the market by convincing its customers to pay for the high price in return for the quality and healthy products.
Q2
The main competitive force for Whole Foods Market is the processed food products due to their competitive prices. In most cases, people buy processed foods because they are affordable ( Piercy, 2014) . The other competitive force is the supply chain management as third party sellers. Currently the company is not able to source all of its products directly from the farmers which rises the operational costs ( Solomon, 2016) .
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Q3
Currently the chief driving force in the industry is the Internet. Nowadays customers prefer to order fresh products online and also have them delivered at their doorstep (Gamble, Peteraf, & Thompson, 2015). The Internet is also the best marketing platform for products.
Q4
The 2017 acquisition of Whole Foods Market by is expected to boost the company’s competitiveness by reducing the operational costs. Walmart will be the key competitor in the market. It has a significant market share and more than 400 stores across America (Gamble, Peteraf, & Thompson, 2015). Both their marketing and pricing strategies are competitive.
Q5
The most likely move for Walmart is to cut the prices for fresh foods and also establish a robust online ordering and delivery system for its customers.
Q6
Success in the industry will be determined by the ability of the company to offer competitive prices without compromising the quality of its products.
Q7
The fresh foods industry is expected to grow significantly given the people’s rising consciousness on the importance of healthy living through consumption of natural foods ( Piercy, 2014) . Through the use of technology, companies will be able to lower the production costs and therefore offer the products at competitive prices.
References
Gamble, J.E., Peteraf, M.A., Thompson, A.A. (2015) Essentials of Strategic Management: The Quest for Competitive Advantage, 4e (New York: McGraw-Hill Education). ISBN: 978-0-07- 811289-8
Piercy, N. (2014). Export Strategy: Markets and Competition (RLE Marketing) . Routledge.
Solomon, M. R. (2016). Consumer behavior: Buying, having, and being (Vol. 10). Englewood Cliffs, NJ: Prentice Hall.
