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How would you describe Whole Foods’ strategy? 2) How would you define Whole Foods’ industry? Who are Whole Foods’ competitors? 3) How attractive is Whole Foods’ current market position? Is it sustainable? 4) What evidence is there that Whole Foods has been successful? Do you anticipate that this success will continue? 5) Estimate an intrinsic value of Whole Foods stock based on an EBITDA multiples approach.

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Answer:

Its growth was contributed by series of mergers and acquisitions, and partnering with suppliers. It provides healthy organic food to consumers and care for community and environment. It has used porter’s differentiation strategy through excellent product quality and services that increase its customer loyalty. The strategy has been successful as weaned customers from competitors in differentiated organic grocery market.

But still experienced low market share. It recorded lowest revenue 11.7$ billion as compared to other market players in its industry. Its growth rate was not taking heights and was hovering at 20%

As per the financial data in its organic segment, it fared well as compared to competition in sales, EBITDA, market capitalization, zero debt, Ranked second in expanding stores in 2013. Its EBIDTA increased to 10% over a period up-till 2013.

Currently, Low cost strategy of Amazon who acquired Whole foods is the reason for extra footfalls in this store. Amazon provided its finances and merged its prime membership services to store products; consumers with such cards get discounts on merchandise of Whole Foods. The new smaller wholefoods 365 offer very low product prices.

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