Question

why was whole foods successful initially? why has it lost its competitive advantage and is under performing its competitors..

what value driver is w-foods using to remain differentiated in the face of competitors selling organic foods?

Given w-foods strategic initiatives to reduce its cost structure, does the firm risk being stuck in the middle? why or why not?

what other strategic initiatives should/could w-foods launch to more successfully drive its business strategy?

I don't need the answer from the text book solution. need a personal answer.

Answer 1

1.	Why was Whole Foods successful initially? Why has it lost its competitive advantage and is underperforming its competitors

Whole Foods was successful initially because it was highly selective on the products that it was selling and also dedicated to producing high quality products. Whole Foods has lost its competitive advantage when it started producing a wide range of products and also some products were missing the quality needed by the customers.

2.	What value driver is Whole Foods using to remain differentiated in the face of competitors selling organic foods?

Whole food drivers to remain differentiated in the face of competitors are product features, customization, customer service and compliments.

3.	Given Whole Foods strategic initiatives to reduce its cost structure, does the firm risk being "stuck in the middle"? Why or why not?

The firm does not risk being stuck in the middle because the strategies are meant to reduce the cost incurred as well as to increase the sales. Increased sales means increased profitability hence the company is likely to continue growing.

4.	What other strategic initiatives should/could Whole Foods launch to more successfully drive its business strategy?

Other strategies that Whole Foods could use include product differentiation, opening more company outlets around the globe and training and educating the employees about the current economic trends.