The article in the url below about Whole Foods’ recent struggles is half right. All this holds true. Fundamentally, however, the article misses the point about the main causes of Whole Foods’ problems. Yes, there are business decisions that the firm could have made that could have better guarded it from competition. But, conscious capitalism is not the explanation for the firm’s drop. In essence, Whole Foods’ sales are declining due to too little stakeholder support, customers particularly, who have been persuaded that products available at Walmart and Kroger (for example) are fundamentally the same as those offered at Whole Foods. As a result, they see no reason to pay the higher prices that Whole Foods generally charges.
In actuality, however, these customers are failing to distinguish between your low-priced model pursued by most supermarkets and the differentiated model pursued by Whole Foods (something that might be threatened under Amazon’s control). With food, as with many products, you get what you purchase and there’s a price superior associated with quality.
With all business models, stakeholder engagement signifies either an endorsement or a rejection of what is on offer. Irrespective of what might maintain our needs, our perceived needs take precedent. And, if customers no longer perceive Whole Foods to be a better value proposition, or they understand a different company to be offering the same value at a lesser price point, they will go elsewhere. Whole Foods is reduced product that essentially, by definition, has a ceiling to its potential … Read the rest