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Very well said. This is why I see TJ's eating Whole Foods's lunch. TJ's started from the opposite end. Like what I imagine possibly happening to iOS at the hand
by galdosdi 10y ago
Very well said. This is why I see TJ's eating Whole Foods's lunch. TJ's started from the opposite end. Like what I imagine possibly happening to iOS at the hands of Android, this is a true example of "disruptive" in its earlier definition -- start down market and move up, not the other way around.
> Disruptive innovation, a term of art coined by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
- valuearb 10y agoMoving downmarket to up is really hard to do. Point in fact, Apple's share of mobile profits is going up, not down.
- MR4D 10y agoMoving from upmarket to down is also hard to do - witness IBM trying to move to PCs from mainframes, and just today, Nikon trying to make a lower range camera (the DL just got canceled due to massive Nikon losses). In my view, Whole Foods is losing out because while they stuck to Organic with a capital "O", they forgot about the rest of the things people want. Clearly everyone is different, but a regular grocery store has the luxury of catering to most of those ( low cost, wide variety, close by, _and_ organic). Whole Foods only can offer one of those (currently). So companies like HEB, which have some very nice grocery stores, can easily shift their product mix to fit the neighborhood they serve. That's a huge advantage, and I don't know how WF can fight them and succeed.