(Solved Homework): Use the three-step procedure to determine that urban locations would be a great…

Use the three-step procedure to determine that urban locations would be a great location for Whole Foods Market.

Step 1 Identify Dominant Location Factors

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Step 2 Develop Location Alternatives

Step 3 Evaluate location Alternatives

Expert Answer

Urban Locations would be a great location for whole food market because:

Dominant Location Factors Develop Location Alternatives Evaluate location Alternatives
  • Urban locations are rich markets
  • Quality of life is high-so they can purchase the product at a given price. This price would include the high margin for the company.
  • Transportation is easier because of better infrastructure.
  • The population has a higher expendable income.
  • Cold storage and warehouse is available near the market, so that fresh food can be shipped to the customer either online or in stores.
  • Taxation is clearly mandated.
  • Easy to determine the market of focus for the product variant.
  • Due to better warehouse and cold storages, loss and wastage is reduced
  • Optimum route can be assessed to deliver the product to the customer within the minimum possible time.
  • The market size can be closely estimated and hence the demand fluctuation is very low.
  • Very specific products are sold in these markets.
  • Cost of the product (including fixed cost and variable cost) can be correctly ascertained.
  • Due to higher income group in those areas, the rise in product price doesn’t necessarily affect the business.
  • Routes can be properly ascertained, to optimize transportation cost and hence the product price

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