The Grocery Market And Natural Food Retail Chain Essay

Conclusion The grocery market and natural-food retail chain that is being represented can be explained though the Porter’s 5 Forces Model because it has categories that are important when describing any industry. Porter’s 5 Forces include supplier power, buyer power, established rivals, new entrants, and substitutes and these can all be used to describe how profitable a firm will be in the industry. Supplier power in this market is high because of the uniqueness of goods. Buyer power in the market is low due to consumers willing to pay more for the niche natural-food goods as opposed to conventional-food goods. There are ample amounts of competitors in the market making profitability harder to obtain, but not impossible. The market for natural-food retail and organic food has been impacted by regulation and certification making new entrants into the market harder to achieve and making it a low chance of new competition. Threats of substitutes in the market is also a low because of the unique organic and natural products that are produced and sold. Power of Suppliers The power of suppliers in this industry have a huge impact on the all companies involved in this market. Organic food producers all raise their goods on their certified cropland and from 1992 to 1997 organic cropland doubled to 1.3 million acres in fruit, vegetables, and other specialty crops leading to higher prices for their goods. Tied along with this, organic meat and poultry rose adding to the uniqueness ofShow MoreRelatedCase Study : Porters 5 Forces1740 Words   |  7 PagesForces When examining the retail grocery industry, there are clear indicators that Kroger’s has a mature market segment. The retail grocery industry has a moderate threat of new entrants. This is because there are very few barriers to enter. However, the investment and market share needed to have a successful startup is difficult to obtain. New companies face high startup costs, government regulation policies, and distribution in regards to the FDA (Food and Drug Administration). Kroger’sRead MoreWhole Foods Market Inc.1231 Words   |  5 PagesINDUSTRY EVOLUTION Whole Foods Market Inc. is a service provider in the grocery industry, which report in the US economy under the North American Industry Classification System NAICS 42441, General-line groceries merchants wholesalers, by the time the company started operations in 1980 supermarkets had a history of 51 years. Supermarkets unlike other type of retail is considered truly American in origin, self service grocery stores are traced back to 1912 in Memphis Tennessee, and it was in 1930Read MoreStrategic Management-Whole Food Market Essay1505 Words   |  7 PagesStrategic Management-Whole Food Market Whole Foods Market competes in the industry of grocery products. As it come to light from the study his industry is highly competitive. 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