Steps Taken By Whole Foods in Planning Strategy

This presentation discusses the steps taken by Whole Foods in planning their strategy, including product development, strict supplier standards, and horizontal and vertical integration. It also covers the process of developing a new business model, including estimating solution value, experimenting with channels and maintenance, and gathering consumer recommendations.

Business Environment and
Strategic Management
Name:

Steps Taken By Whole Foods in
Planning Strategy
 Product development
 introduction of innovation to clients by generating ideas
and testing them through distribution1
 WFM enforces strict standards on suppliers2
 Horizontal integration
 it is the acquisition of a related business3
 WFM acquired six stores in 2013, & four in 20144
 Vertical integration.
 Is a competitive strategy by which an organization takes
total control over a single or multiple stages in product
production or distribution5
 WFM launched 4 new stores in 20141
Trott, P. (2008). Innovation management and new product development. Pearson education.
2
Pringle, P. (2010). Food, Inc.: Mendel to Monsanto--The Promises and Perils of the. Simon
and Schuster.
3
Cai, H., & Obara, I. (2009). Firm reputation and horizontal integration. The RAND Journal of
Economics, 40(2), 340-363.
4
Whole Foods Market. (2015). Whole Foods Market. Annual Stakeholders' Report 2014:
Form 10-K. Retrieved from http://
assets.wholefoodsmarket.com/www/company-info/investor-relations/annual-reports/2014-WFM-10K.pdf
5
Joskow, P. L. (2012). Vertical integration. The Antitrust Bulletin, 57(3), 545-586.

Developing a new Business Model
I. Estimate the solution value in
the target segment
II. Ensure new product or service
is a solution to the problem
III. Experiment the channel and
maintenance approach
IV. Engage industry specialists and
financiers6
6
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for
visionaries, game changers, and challengers. John Wiley & Sons.

Developing a new Business
Model…
V. Design and implement a
preliminary test
VI. Concentrate on gathering
consumer recommendations
VII. Aim at the countrywide
business shows and industry
related sets7
7
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for
visionaries, game changers, and challengers. John Wiley & Sons.