Whole Foods and the Rise of the Health Foodie

As the article in the Washington Post mentioned, Whole Foods has recently been forced to improve its business model canvas in order to appeal to more of the ever-growing customer segment that seeks a healthy, natural product. The problem for Whole Foods is not the growth of the health foods industry, but rather the increasing rivalry within the industry as larger grocers begin offering more natural and high-quality alternatives. Whole Foods experienced more growth in past years because there was a lower concentration of competitors, and since the concentration has increased recently, they have experienced slower growth. However, I believe that this poses as a challenge and an opportunity for Whole Foods. In the past they have merely served as a supplementary grocer for those who seek high quality in certain products. Therefore, as larger grocers with a greater variety of low-cost products begin offering similar products to Whole Foods, customers will see no advantage in shopping for those products at Whole Foods. This has, in turn, brought Whole Foods to consider expanding its accessibility and moving farther away from its previous specialty-store status. With its efforts to lower prices, Whole Foods is essentially modifying its value proposition to attract more customers and become more appealing to those who wish to purchase all their groceries in one location and who also value a high-quality, natural product.

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