Porter's 5 Forces One of the most volatile and unstable industries is that of the grocery industry. There are many substitute goods and the product is perishable. Rivalries are high because of the availability of substitute goods, the ease of transfer of consumption habits, challenges in the supply chain, and rival new entrants. Whole Foods is an excellent example of a company which has had to carefully hold onto its niche marketing strategy of offering organic and specialty goods, versus solely competing on price. The threat of new entrants is high given that customers can choose to purchase organic goods at Wal-Mart and Target, not just Whole Foods, as well as patronize their local farm stands. Substitute products are plentiful not just in the form of other grocery products but also in the form of buying prepared foods from healthier chains like Chipotle. Competitive rivalry is more intense than ever before "as grocers like Wal-Mart and Kroger ramp up organic offerings and specialty assortments" and as more non-food companies are entering the organic grocery market like Costco, whose membership has a great deal of overlap with Whole Foods' target upscale audience (Lutz 2014). The power of buyers is high in the market given that they can easily move their dollars from one grocery store to the next and now even suppliers of higher-end organics have more venues in which to showcase their goods. All of these are reasons why Whole Foods "shares have fallen 33% in the past year" despite efforts to promote the cheaper store organic brands and to offer amenities to consumers like Apple Pay (Lutz 2014)

References

Lutz, A. (2014). Whole Foods is making 6 changes to improve business. Business Insider.

Retrieved from: http://www.businessinsider.com/whole-foods-turnaround-strategy-2014-9

Discussion 2: SWOT

McDonald's is an internationally famous food company with a relatively limited menu: it focuses on burgers, fries, and shakes....

For many years, it was able to capitalize upon these limited strengths and become successful in the highly competitive food industry. However, its brand has since faltered thanks to competitive rivalries within the industry and changing tastes.
Strengths

McDonald's has strong brand recognition, more so than almost any other fast food company. It has a powerful draw upon children in particular, given its Happy Meal line and promotion of cartoons and toys along with its food. Its dollar menu also draws in lower-income customers because of its promise of value.

Weaknesses

McDonald's has incurred negative publicity because it is associated with the unhealthiest aspects of fast food consumption and the low wages it pays to its workers. It also has a relatively unchanged menu despite changing consumer demographics and concerns regarding taste and health.

Opportunities

McDonald's has made efforts to heed the challenges of its critics. "The company is also changing its menu, eliminating certain items and adding higher-end options such as antibiotic-free chicken and a premium burger. And it's revamping the look of its restaurants, introducing digital menu boards" ("McDonald's franchise owners are not loving it," 2015).

Threats

Franchise owners are unhappy with wage increases. Also, menu changes may be too little too late to rival the plethora of low-cost entrants such as Five Guys and In-N-Out burger, which offer similar menus but with higher-end ingredients and who do not have McDonald's tainted reputation. "The company faces tough competition from the likes of Chipotle and Shake Shack, which are perceived as providing better quality food. McDonald's recently cut 8 items from the menu to make way for 'future food innovations,' which could mean new ingredients or customized individual orders" ("McDonald's franchise owners are not loving it," 2015). McDonald's has long promoted itself on its…