Case3 599 Coursework Example | Topics and Well Written Essays - 1250 words

Case3 599 - Coursework Example It was acquired by John Mackey, a college dropout who started with a Texas natural foods store called ‘Safeway.’ He expanded vigorously and by 1999 had 100 stores. Whole Foods is also listed on NASDAQ, currently as WFM. (Market, 2013) Porter’s Competitive Strategies A well positioned firm can function better even if its outer profitability doesn’t seem to be high compared to other companies. Within an industry, different companies position themselves, according to Michael Porter on different strategies based on their target scope and the advantage they have over other companies. Michael Porter has identified four strategies in this regard: cost leadership strategy which focuses on a broader market segment and low cost strategy to drive out competitors. Secondly, there is the differentiation strategy which also caters industry wise and has the advantage of producing unique products. There are also tow focused strategies which are basically subsections of the two aforementioned strategies; focused cost leadership that caters to a narrower target segment but competes on the basis of price, and focused differentiation strategy which differentiates and is unique yet caters to a narrow market segment. ... d sells them to wholesalers with a promise that they will sell them at a premium price and this is how it has differentiated itself in the minds of consumers. Whole Sales Market has managed to carry on with such a strategy because of the facilities and the skilled expertise to handle and manage differentiation in a broad target market. The firm needs adequate sources and new plants were opened up to cater to the needs of expansion as well. Since these are fast moving goods mostly that WMO produces, the shareholder value model wouldn’t apply as much as the unlimited resource model; that WMO needs to invest and manage risk and uniqueness in order to sustain its position in the marketplace for a long time. However, WMO may also be pursuing a cost leadership strategy which is why it has expanded in less affluent areas as well. Research shows that compared to other organic stores, WMO sells products at a cheaper price. And this is seen in the prices as well as the process of qualit y assurance. Food has to comply with the high quality standards that WMO has to maintain according to its policies; quality comes first. There are 270 stores, and they have their own farmers who also place utmost importance on quality rather than on negotiations over price that compromise quality. Many products of WMO are cheaper than the products at Safeway. They also focus on the ‘Whole Deal’ by either keeping the prices the same and adding value or cutting prices whenever possible without compromising on quality. (Porter, 1998) Congruence The Nadler-Tushman Congruence Model is a theory which aligns the inputs, throughputs and outputs of a system and it functions on the basis of certain assumptions: Organizations are part of a larger environment and social system There are three levels in