Mission College Bargaining Power of Buyers and Consumers Analytical Review

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answer the questions 1 and 2 and appendix 4 and 5

1. What opportunities and threats can be identified through examining Whole Foods in the context of the competitive forces model and a competitor analysis?

2. What has created the durability of Whole Foods’ market presence? What has given them their competitive advantage?

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Explanation & Answer

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Opportunities and Threats Analysis
Introduction
Competition
Bargaining Power of Buyers and Consumers
Bargaining power of supplier
Substitution
New Entry
Durability of Whole Foods’ market Presence
Competitive Advantage
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Corporate Strategy that Whole Food is Pursuing
Works Cited


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Opportunities and Threats Analysis
The whole Food market is a multinational supermarket with headquarter in Texas and is
considered among those companies which are very profitable retail food in the United Sates..
The company sells products that are free of preservatives, color, flavor, and hydrogenated fats.
The firm is a certified organic grocery by the USDA in the United States. There are 500 stores in
North America and 7 in the United Kingdom. The industry was founded by John Mackey, among
other friends (Fung et al., p.1). We'll use the Porter five model to help analyze the opportunities
and threats of Whole Food. The model helps in identifying the external forces which influence
the company's development and analyze competition. The five force analysis provides the
concerns and issues used to monitor and evaluate its strategic direction. The forces may limit or
support the growth of the organization. Investors and managers use the model analysis outcome
to provide appropriate responses to the firm's environmental conditions. Therefore, the Whole
Food market analysis using Porter's five models provides the forces' strength and intensity that
affect the company externally. The firm should address the external factors in the company's
environment. Since the firm is ever-expanding, it could be the reason for the company's more
external forces. The five forces affecting Whole Foods markets are competition, bargaining
power, substitution, and new entry. Therefore, the company should implement strategies to
control all the forces even though some of the issues are already addressed with its policies and

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programs. There is also a need to innovate other strategies to help deal with the Porter's five
analysis issues.
Competition
There are strong forces of rivalry which compete with Whole Foods Market. The external
factors that contribute to the strong force of competition are the firm's aggressiveness, the high
number of firms, and low switching cost. The whole Food market is part of the retail industry,
majorly concerned with grocery and health foods. This industry is very saturated. The companies
involved in retail compete based on price, quality, and service, among others. Whole food faces
strong competition because of its low switching cost, this makes the customers shift to other
retailers. To counter this set back, Whole food differentiated their products based on high quality
they offer.
Bargaining Power of Buyers and Consumers
This factor provides for the effects of buyers on the firm. External factors contributing to
the consumers' strong bargaining power are low switc...


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