Preview

What Is The Difference Between Amazon And Whole Foods Merger

Powerful Essays
Open Document
Open Document
1519 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
What Is The Difference Between Amazon And Whole Foods Merger
One of the world events related to business is ‘Amazon and Whole foods merger and acquisition’.
Amazon- Whole food acquisition is the retailer’s biggest acquisition ever. Amazon and Whole Foods announced the agreement on June 16, 2017. Amazon (AMZN) and Whole Foods Market, Inc. (WFM) entered into an ultimate merger agreement where Amazon paid $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt. Amazon, which is sitting on $21.5 billion in cash, has long avoided big takeovers. In 2009, purchase of online shoe retailer Zappos.com and video game streaming site Twitch in 2014 at respectively $1.2 billion and $1 billion are the company’s leading acquisitions Reasons for buying …show more content…
“They’re not really competitors. Add to that the fact that Whole Foods doesn’t have the dominant positioning it did even a few years ago, and that makes it even more likely for this deal to go through.”
Impact of this acquisition
Many analysts believe that the Amazon-Whole food merger will provide opportunities for trucking and logistics companies across the country. Amazon intends to use 460 stores of Whole food as warehouse and distribution centers for delivery.
Additionally, Amazon has gained access to a key resource by this acquisition that is temperature- controlled distribution warehouse. This was not available before this deal. So they could not transport frozen and refrigerated products. Through this merger Amazon has taken this opportunity.
The synergies with Amazon’s technology are vibrant. "Amazon has an opportunity to give Prime members automatic entry in a new Whole Foods benefits program," says Brent Franson, CEO of retail analytics firm Euclid Analytics. "They could also offer the option to pay for groceries using the Amazon app, or sync your Alexa-made grocery list with your app while in-store.”
There are also negative impacts according to some …show more content…
Besides, Amazon can distribute its private label food business at Whole Foods, while Whole Foods brands can be sold through Amazon's website. An incredible amount of economic power is now concentrated in Amazon, Inc., and investors now believe it is stifling competition in the retail sector and the broader American economy. Its broader economic impact may be limited to the ongoing transformation of the retail sector toward online shopping and less on overall
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    BUS3022 Unit 3 Assignment 1
    • 891 Words
    • 3 Pages

    BUS3022 Unit 3 Assignment 1

    Amazon.com is a publicly traded worldwide online retail company founded by Jeff Bezos on July 5, 1995 in Seattle, Washington. The company originally began as an online bookstore as Bezos felt there was a high demand for literature, and books had a low price point and a huge selection of titles available in print. Technological innovation drives the growth of Amazon.com to offer customers more types of products, more conveniently and at lower prices. Since 1995, Amazon has significantly expanded its product selection, international retail websites, and worldwide network of fulfillment and customer service centers. Today, Amazon retail websites offer everything from toys and video games to MP3 downloads and collectible items (amazon.com, 2014). Amazons business model is fairly simple; to sell various products and goods online at an affordable cost to consumers. Amazon has managed to not only achieve this business model but they have also managed to consistently expand and become the largest online retailer to date. To keep up with global demand, Amazon had to expand its products and services offered while continuing to forecast consumer’s needs. “In 2000, Amazon.com began to offer its best-of-breed e-commerce platform to other retailers and to individual sellers. Today, hundreds of thousands of world-class retail brands and individual sellers increase their sales and reach new customers by leveraging the power of the Amazon.com e-commerce platform. Partners work with Amazon Services to power their e-commerce offerings from end-to-end, including technology services, merchandising, customer service, and order fulfillment. Other branded merchants leverage Amazon.com as an incremental sales channel for their new merchandise. Over 2 million third-party sellers participate in Amazon where they offer new, used, and…

    • 891 Words
    • 3 Pages
    Better Essays
    Read More
  • Powerful Essays

    Whole Foods Executive Summary
    • 2425 Words
    • 10 Pages

    Whole Foods Executive Summary

    Whole Foods Market 's initial public offering was on January 23, 1992 at a price of $2.13 per share (split).(Whole Foods) “In fiscal year 2012, the closing market price per share of Whole Foods Market common stock ranged from $62.44 to $100.08.” (10-K, page 12) Whole Foods has had an increasing value in their stock price for the past 5 years and plans to continue that…

    • 2425 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    A Comparative Analysis of the Grocery Chains: Whole Foods Market and Kroger Co.
    • 4221 Words
    • 17 Pages

    A Comparative Analysis of the Grocery Chains: Whole Foods Market and Kroger Co.

    Whole Foods Market began operations during 1980 in Austin Texas and experienced rapid growth as a grocer providing high quality natural and organic food products. They are currently the leader within this industry as the potential markets are receptive to the healthy options that they provide. In addition to the operations held within the United States Whole Foods has also expanded into the UK and Canada and acquired other natural grocers such as Wild Oats and the Bread of Life.…

    • 4221 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    Whole Foods Mission Statement
    • 824 Words
    • 4 Pages

    Whole Foods Mission Statement

    Prior to the recession of 2008, Whole Foods’ strategy focused on Growth, Store Location, Product Line, and Pricing. After going public in 1991, Whole Foods implemented a Growth strategy that included opening new stores and acquiring smaller chains in attractive markets. Store Location strategy involved finding locations in affluent, urban areas. High traffic shopping destinations and prime real estate spots were part of this Location strategy. The strongest strategic element Whole Foods adopted was its Product Line. Whole Foods specialized in a huge selection of organic and natural foods not found in traditional grocers. Pricing strategy for Whole Foods aimed to be competitive. A majority of its private label foods…

    • 824 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Whole Foods Strategic Plan
    • 1273 Words
    • 5 Pages

    Whole Foods Strategic Plan

    Whole Foods competitive advantage is its broad product offerings; it offers broad selection of perishable foods which is designed to appeal to both natural foods and gourmet shoppers. In addition to that the company prides itself in offering a wide variety range of products that include a range of produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, specialty (beer, wine and cheese), coffee and tea, nutritional supplements, vitamins, body care, educational products such as books, floral items, pet products and household products. Whole Foods ability to be able to offer these range of products at all its locations has enabled the company to continue to stay competitive and maintain a…

    • 1273 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Zappos Ceo Tony Hsieh
    • 889 Words
    • 4 Pages

    Zappos Ceo Tony Hsieh

    One of the most striking Internet success stories in recent years is Zappos, the $1+ billion e-commerce business which was bought last year by Amazon.…

    • 889 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Whole Foods Merger Analysis
    • 217 Words
    • 1 Page

    Whole Foods Merger Analysis

    Whole Foods Market corporate level strategy consists on selling the highest quality of organic and natural products at logical prices. Additionally, healthy eating habits and caring for the local and global environment contributes to the purpose of the company. On August 28, 2007 Whole Foods Market acquired one of its rivals Wild Oats Markets for $565 million. However, the Federal Trade Commission issued a complaint in order to block the merger. The FTC claimed that the merger was anticompetitive meaning that it eliminate substantial competition between the two stores. Consequently, the FTC believed that Whole Foods will eventually raise prices and reduce quality and services. Also, on 1997 Whole Foods acquire Allegro Coffee Company which allowed…

    • 217 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Inputs Diagnosis Whole Foods
    • 1861 Words
    • 8 Pages

    Inputs Diagnosis Whole Foods

    Generally the concentration of competitors has been fragmented by geography. However, through recent consolidations, the emergence of regional and national chains has started to prevail along with the decline of the independent/local shops. This consolidation activity has allowed many companies to spread their fixed costs over a wider range of output, thus creating more efficiency in operations. Often, it is cheaper for a company to acquire an incumbent due to the location of their stores and access to customers rather than to raise the capital for entirely new stores, which is how Whole Foods has been able to expand following their growth model strategy. Whole Foods acquisition growth plan has helped them to gain enough economies of scale to better compete with the Wal-marts and Sam’s Clubs.…

    • 1861 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Better Essays

    Whole Foods Supply Chain Analysis Paper
    • 1992 Words
    • 8 Pages

    Whole Foods Supply Chain Analysis Paper

    Whole Foods would benefits from Suppliers, 3PL Firms, Distribution Center, and Retailers who understand the perishable aspects of the seafood division and the freshness of the product. If Whole foods aligns themselves with firms that understand these needs, they will maintain their competitive advantage.…

    • 1992 Words
    • 8 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Whole Food Industry Analysis Paper
    • 85 Words
    • 1 Page

    Whole Food Industry Analysis Paper

    The supermarket and grocery store industry is the largest food retail channel in the United States. According to the U.S. Census Bureau, grocery stores accounted for around 90% of the country’s food and beverage store sales. 2016 has been a difficult year for all players in this industry because of increasing in competitive landscape. Organic and natural food players like Whole Foods have had tough time because of the entry to this segment of lower priced and big retailers players such as Walmart or…

    • 85 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Whole Foods
    • 3063 Words
    • 13 Pages

    Whole Foods

    Whole Food 's path to international success stems from CEO and founder, John Mackey 's initial vision for the company, “To promote vitality and well-being for all individuals by offering the highest quality, least processed, most flavorful natural and naturally preserved foods available.” (John Mackey) Rather than becoming one of the dime-a-dozen smaller retail chains throughout America, Whole Foods set out to open its own massive stores of around 50,000 square feet (Meador & Britton). After Austin Texas, they expanded out to Houston, Dallas, Palo Alto, and even Eastward to New Orleans during the 1980 's. As Whole Foods continued to expand, through both opening new stores and merging with other companies, it began acquiring existing natural food stores, so that some twenty years later in 2006, it was the nation 's largest natural/organic retailer. From day one, their concept has been to create an inviting and interactive store atmosphere where shopping for food was a fun and pleasurable experience.…

    • 3063 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Loblaws Business Strategy
    • 550 Words
    • 3 Pages

    Loblaws Business Strategy

    The grocery industry is a commoditized industry, which makes it difficult for grocers to sustain through differentiation. Buyer power is high and thus, cost leadership and operational efficiencies are critical. There is fierce competition amongst various grocery stores, with the main players such as Loblaw and A&P holding multi-banner stores in various market segments. Traditional grocery stores also lose some of their market share to drug stores, convenience stores and other retailers who have entered the industry. Threat of substitutes from fast-food and take- away outlets is not as prevalent, since many grocery stores have started stocking ready-to-eat meals and have deli services available for consumers. Competitive pressures are increasing in the industry with the potential entry of Wal-Mart and new delivery methods such as the internet.…

    • 550 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Whole Foods Organizational Structure
    • 672 Words
    • 3 Pages

    Whole Foods Organizational Structure

    Competition between teams is a big aspect of working for the company as this stimulates improving the efficiency and effectiveness of managers and employees. Teams are greatly valued at Whole Foods. To help new employees learn about the products and company Whole Foods Market has an instituted mentor program and even has an online portal. Whole Foods Market puts great effort into informing and guiding the employees to meet their full potential. The company seems to be less focused on itself and more on the people who are dedicated to creating its success. The structure of Whole Foods sets a great example for smaller companies who are struggling to achieve the same goals. Whole Foods Market has an outstanding structure and has been a major factor in generating its success, flexibility, control, and growing influence. The ambition to reach higher than the companies goals, help customers reach their full potential, and reach maximum efficiency has helped the chain expand throughout the…

    • 672 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Case Study Zappos
    • 11554 Words
    • 47 Pages

    Case Study Zappos

    Amazon had been courting Zappos since 2005, hoping a merger would enable Amazon to expand…

    • 11554 Words
    • 47 Pages
    Powerful Essays
    Read More
  • Good Essays

    Amazon Consumer Buying Decision Case Study
    • 992 Words
    • 4 Pages

    Amazon Consumer Buying Decision Case Study

    For some reason it was hard for me to think of a way Amazon affects problem recognition other than the fact that when the consumers have a problem they would go to Amazon to fulfill their need for help. Amazon has helped the consumers in the state of problem recognition in the simplicity that comes with buying a new item that is suited for their current state. Amazon has not been beneficial to the Retailers in this state, because when a consumer needs that new product they are more likely to go right to Amazon to make the process simpler. The second step of the consumer buying process is Information Search. This step is when the consumer used to search for information about the product and then different retailers to see which one they would buy this product now. With the breakthrough of Amazon there is no need for this step, because Amazon practically does it for us buyers now. Amazon shows us great descriptions, offers easy price comparing, and they re-define information. This is hurting retailers, because consumers or no longer using their differences for specific…

    • 992 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics