If The Launching Of Wal-Mart Organic Product Line May Fail Essay

If The Launching Of Wal-Mart Organic Product Line May Fail - Essay Example This paper illustrates that the benefits of consuming organic foods as opposed to processed items have been acknowledged by a significant faction of society and this notion has gradually progressed into becoming common knowledge there are certain limitations with regard to the consumption of organic foods which potentially restrict buyers from purchasing products which fall under this category. As reported by Charles, the single most significant factor, in this case, is related with the relatively high costs of organic foods which essentially deter the masses from declining to consume processed items which possess a much lower price tag. Moreover, other aspects that can be linked with this prevalent issue are linked to the distribution of organic foods and the inadequacy of current distribution channels that do not fall under the scope of mass retailing. Given the development of the existing scenario, the purpose of this analysis is to examine Wal-Mart’s prospects in the organ ic foods industry by applying the recommendations of Porter’s 5 Forces strategic tool to comprehend the state of the industry in a more comprehensive manner and present pertinent recommendations to the company for achieving future success. The arrival of Wal-Mart in the organic foods market could not be retained for a significant period of time because the company was forced to approve the closure of its organic foods brand by 2007. Thus, as a consequence of this action critics and industry analysts began to raise the question as to whether the mass retailer possesses the capability to make organic food cheap and affordable for the mass market that it serves. As noted previously, the factor of high pricing remains one of the most important considerations with regard to the notion of popularizing organic food consumption amongst the larger population. Thus, gaining an advantage by enhancing cost efficiency can be deemed as one of the most critical factors for acquiring success in the market. Secondly, it is also important to understand those customer motivations for paying more for organic foods must be recognized and highlighted to comprehend the demands of the audience and address them accordingly.