Strategies of Successful Organizations

¶ … Mastering Strategy: Art and Science

Whole Foods has been able to stay afloat in a highly competitive industry based upon its niche positioning as a grocer. Whole Foods' positioning as an organic grocer is an intended strategy: the company was founded upon the principle that food quality was important, not simply price. In terms of its realized strategy, the organization has been able to capitalize upon the new interest in foods which are not laden with chemicals or highly processed. However, Whole Foods has also expanded its vision into an emergent strategy: the rise in specialty diets (paleo, gluten-free, vegan, etcetera) has also been a boon for Whole Foods, which stocks a wide range of specialty items. The popularity of these fad diets was not in vogue when the company first began but has since become an equally important part of its appeal.

Whole Foods has also had to position itself as a more affordable grocer, even though it still cannot really compete on price. "General perceptions that Whole Foods prices are likely very high are not new, with some referring to the retailer as Whole Paycheck. To combat perceptions of high cost per item, Whole Foods launched entries like 365 Everyday Value® as competitively priced on staples vs. competitive grocery outlets" (Kusek 2015). This has been a way to lure consumers who are still concerned about their health but who cannot shop at the high price point of the target Whole Foods shopper. Whole Foods has continued to thrive in the current economy because of its willingness to adapt its strategy of focusing on quality organic foods: it has stayed true to its vision even though it is now more willing to offer store brands at a bargain (although they are still higher in quality and cost than typical generic foods).