Adding a Social Dimension to Strategy

Shared value opens up new needs, new markets, new value chain configurations, and new ways of thinking about the business. This creates new opportunities for strategic positioning and new competitive advantages. When companies incorporate a social dimension into their value proposition, they tap into the potential for a competitive advantage that is more sustainable versus competitors than conventional cost and quality advantages.

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

Purpose-Based Strategic Positioning

A clear social purpose opens up new opportunities for growth and profitability, while motivating and attracting employees, consumers, business partners, shareholders, and the public. In recent years, companies such as Nestlé, Nike and Thermo Fisher Scientific have evolved to a new, purpose-based strategic positioning. Shared value opportunities are inevitably closely tied to each particular business.

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Institute For Strategy & Competitiveness

Adding a Social Dimension to Strategy

Shared Value and Company Strategy: Whole Foods Markets

Purpose-Based Strategic Positioning

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