Strategic Management of the Whole Foods Market The Whole Foods Market competes in the food products industry. As emerges from the study, its sector is highly competitive. The characteristics of this market are low prices and convenience are the dominant factors that drive consumers to supermarkets today. The emergence of supermarkets in the 1930s was the result of three major changes in society: 1. The shift of population from rural to urban areas; 2., An increase in disposable income.; 3. Increase mobility through car ownership. The food and beverage industry is characterized by low margins and continued upward price pressure, evident through coupons, weekly specials and rewards cards. The companies present innovations such as including bakeries, banks, pharmacies and even coffee shops co-located within the supermarket. Supermarkets have also sought to cater to society's changing tastes and preferences, such as healthier diets and low-carb foods. The moderate changes in supermarket strategy have been imitated by competitors, who are returning the sector to a situation of price competition. In an attempt to offer an objective criterion for market definition, the horizontal merger guidelines state that antitrust agencies must delineate the product market as a group of products such that, if produced by a hypothetical profit-maximizing monopolist, they would able to profitably impose at least a small but significant and non-transitory increase in price. According to Porter, the five forces present in competitive industries combine to impact its attractiveness and ultimate profit potential. ...... middle of paper ......THREATS: On the one hand, only 3% of all farmland in the United States is organic. This means that the entire food market has limited resources. On the other hand, the company has many rather powerful opponents in the market. The natural and organic products market grew from $2.9 billion in 2001 to $5.3 billion in 2004, an increase of 80.5 percent in three years. The positive side of the increase in demand for organic products is the increase in production and the development of Whole Foods Market as the largest supplier, but on the other side this growth may collide with the obstacle, the lack of raw materials . From my point of view it would be better for this company to prepare for tough competition on the market, in which it could lose its leading position.