Fei Chen
Whole Foods business case.
Whole Foods Market & Oats Merger
Question:
1. In what industry is Whole Foods?
2. Did Whole Foods integrate too soon? Why or why not?
3. While Mackey awaits the court’s decision, how should his post-merger-integration
plan change, if at all?
4. How does the purchase of Wild Oats change Whole Foods strategy going forward?
5. How will Whole Foods compete with Kroger and Wal-Mart? What will Kroger’s
and Wal-Mart’s reaction be?
6. How will Whole Foods retain its traditional profile of clients, if it begins to blend
into a new industry?
7. What are Whole Foods core competencies and how will this affect its new strategy,
outline in question 3?
Answer:
In what industry is Whole Foods?
Whole Foods is in the Organic and Natural Food Industry. Foods were minimally
processed, largely or completely free of artificial ingredients, preservatives and other
non-natural chemicals.
Did Whole Foods integrate too soon? Why or why not?
Whole Foods didn’t integrate too soon, because base on the legal process, company
defeated an antitrust lawsuit filed by the FTC in August 2007, and it is very rare that FTC
would appeal for the court decision. Also Whole Foods would still face competition with
traditional grocery store as traditional grocery companies are bringing more organic
products to their stores. And based on the study, 46% of organic food revenue went to
traditional grocery stores. Since company announced its intention to acquire Wild Oats in
Feb 2007, it has been 6 months. In order to carry out smooth integration transition, Whole
