Inputs diagnosis and analysis

Input Diagnosis

In business, the way a firm deals with critical challenges is a key to its overall success. To remain competitive, a number of different strategies have been introduced. That is designed to improve innovation and ensure executives are not overlooking critical areas. In the case of Whole Foods, the company is facing increasing amounts of pressure in maintaining their customer base and reaching out to new cliental. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012)

To fully understand how the company is able to achieve these objectives requires looking at Porter's competitive strategies and the Nadler Tushman Congruence Model. This will be accomplished by carefully examining: which of one of Porter's strategies fits with the primary goals of the firm and determining the inputs that apply (from the Tushman Congruence Model). Together, these elements will highlight the strengths and weaknesses of Whole Foods. It is at this point when these insights will help to make the company more competitive over the long-term.

Discuss the organization's strategy and classify it according to Porter's three generic competitive strategies.

The basic strategy that Whole Foods is using is to showcase their locations as a place where people will have a pleasurable shopping experience. At the same time, they want to offer consumers with the ability to purchase organic foods from a firm which is concentrating on providing everyone with quality. This is different from many of the large retailers such as: Safeway, Kroger, Wal Mart and Super Value. In these cases, the firms want to attract customers by having reduced prices on a larger selection of products. They are not concerned about where it comes from or the quality in contrast with Whole Foods. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012) ("Porter's Five Forces," 2013)

This basic strategy; is what has helped to make Whole Foods the largest organic retailer and is why they are concentrating on opening locations with at least 50 thousand square feet. The results are that customers have begun to focus on the quality of the foods they are purchasing and how this can enhance their overall levels of health. These factors are the primary reasons, why the company has been able to create a unique market share among a new segment of cliental. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012) ("Porter's Five Forces," 2013)

The strategy of Porter's model that would apply is the Five Forces approach. Under these guidelines, it is identifying rivalries, the threat of entry, substitutes, the bargaining power of buyers and the bargaining power of suppliers. The biggest rival that is facing Whole Foods is Trader Joes. They are offering similar products and low prices. This is designed to siphon market share away from the company through having cost savings and the same quality. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012) ("Porter's Five Forces," 2013)

The threat of new entrants is showing how other firms can use their economies of scale to offer similar products and drive down costs. Wal Mart is the biggest danger, with them having a line of organic foods and the best pricing structure inside the sector. This is illustrating how other firms have recognized these challenges and they have begun offering similar choices to cliental. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012) ("Porter's Five Forces," 2013)

New substitutes, is when many large retailers have begun to introduce healthy-based products and organic foods into their stores. In many cases, they have received USDA certification and begun labeling them as organic. To deal with these challenges, Whole Foods has created its own private label called 365 Organic Value. This is a low cost alternative which is designed to directly compete against these new products. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012) ("Porter's Five Forces," 2013)

The buying power of customers is showing how Whole Foods is focused on meeting these objectives. This is achieved through them reaching out to a unique class of consumers, who want to purchase high quality organic products (from a firm that cares about the practices of their whole sellers). This is reaching out to cliental; that is embracing certain kinds of lifestyle choices and will shop at companies which are supporting these objectives. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012) ("Porter's Five Forces," 2013)

The buying power of suppliers is illustrating the way Whole Foods is seeking out other producers and whole sellers. That can offer them with a wide selection of products and services. This is helping the company to expand their product line and to offer alternative brands. That is cheaper and has the same standards for quality inside the store. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012) ("Porter's Five Forces," 2013)

Identify the most critical inputs in each of the first three categories and justify why they are critical. Also explain what effect the inputs from one category have on inputs from the other categories. How well does the strategy fit with the environmental, resource and historical inputs you identified?

The critical inputs are showing how Whole Foods is concentrating on creating a unique product. That is designed to reach out to a larger segment of customers. In the case of the environment, the most critical input is purchasing from producers who support sustainable practices. This is critical in helping the company to remain competitive by offering cliental with products which are supporting their lifestyle choices. The resources, are illustrating how the firm is concentrating on having a larger variety of producers and whole sellers they are buying from. This allows the company to be able to increase the number of products available and ensure they can meet the demands of their customers. The historical inputs; are when the company is continuing to embrace their basic strategy of providing cliental with the merchandise they demand and the practices they are utilizing to achieve these objectives. These are interconnected with each other, by working together to create a unique brand and image for the company. It is this point, when the company becomes known for embracing practices which are supporting a particular lifestyle. The way that the strategy fits with the environmental, resources and historical inputs is to build upon the image they have established and enhance it. This offers clients with the products they demand at one central location. That is focusing on their core philosophies and principles. (Colvin, 2013) (Frankel, 2013) (Meador, 2009) (Patton, 2012)