Adding a Social Dimension to Strategy

Whole Foods, the most economically successful food retailer in North America, built a social dimension directly into its core business strategy—and identified a set of customers who were willing to pay a premium for healthy, environmentally friendly food.

Shared Value and Company Strategy: Whole Foods Markets

Natural, fresh, organic, and freshly prepared foods and health items with excellent service at premium prices
Cater to specialized nutritional requirements (gluten allergies, vegan, etc.)
Serve educated customers who are passionate about food and a healthy lifestyle

Well-lit, inviting supermarket store formats with appealing displays and extensive prepared foods sections
Produce section as “theater”
Café-style seating areas with wireless internet for meals and meetings
Each store carries local produce and has the authority to contract with the local farmers. Company provides low-interest loans if needed
Nutrition information and education provided to shoppers along with products

High touch in-store customer service via knowledgeable, flexible, and highly motivated personnel
Flat compensation structure
Own seafood procurement and processing facilities to control quality, sustainability and price from the boat to the counter
Heavy emphasis on environmental sustainability in all activities
Emphasis on supporting community development

Institute For Strategy & Competitiveness

Shared Value and Company Strategy: Whole Foods Markets

Purpose-Based Strategic Positioning

Related Resources

Measuring Shared Value: How to Unlock Value by Linking Business and Social Results

Understanding Michael Porter: The Essential Guide to Competition and Strategy

What Is Strategy?