The world of business is competitive. Companies and their leaders take numerous steps that can fit their strategies, core values, and resources. As a rule, all steps of an acquisition process are time-consuming and require much work to be done (Abraham 2013; Pignataro 2015). Last year, Amazon shocked the world of online business and its competitors with an unexpected $13.7 billion acquisition of Whole Foods (Bowman 2018). In this paper, the analysis of such acquisition and the readiness of Whole Foods to meet the demands of Amazon will be developed.
As soon as the acquisition was announced, its possible benefits were discussed. This step is not only a chance to lower prices and find new customers but a decision to promote new cross-platform selling opportunities (Dorfman 2017). Because of the mysterious reasons for this acquisition (Potter 2017), it is hard to predict all possible outcomes of this type of investment. However, several strong ideas and suggestions can be given. For example, The Economist (2017) develops a thought about the possibility for Amazon to supply restaurants in the future. Another significant opportunity is connected with the company-customer relationships. Amazon can improve its knowledge of online customer behaviour by the evaluation of customers’ habits in physical facilities. It is never too late to learn something new about people and meet their expectations. Amazon has this chance and can use it with Whole Foods. In their turn, Whole Foods’ leaders agree that to sell the company is the best possible decision they have ever made to promote change (Herrera 2018). Amazon shows how to cut prices with minimum losses to attract customers or use rewards programs to motivate employees (Taylor 2017). In addition to a number of positive outcomes of the acquisition for Amazon and Whole Foods, it is necessary to remember possible threats. Walmart, as the main competitor of Amazon, is ready to take new steps and buy Bonobos as an experiment to use different services (The Economist 2017). In fact, many companies can start uniting and supporting acquisitions like Amazon did to check their options in the chosen business.
Some marketers and researchers may question the effectiveness and success of this acquisition because, as an upscale grocery shop, Whole Foods can hardly fit into Amazon’s strategy as a giant online retailer. The differences between these two organisations are impressive, and this is what makes this acquisition unique. Much work and integration have to be done. Numerous tough points have to be discovered. The representatives of both companies have to work hard. Despite the possible challenges, Whole Foods is an appropriate company for Amazon to be acquired due to its location, experience in communication with real customers, and physical stores. Amazon’s strategy is to stay close to people. Though the progress of digital technologies and online communication is vital, millions of people still admire the idea of physical contact and that brick-and-mortar power. Whole Foods cooperates with people from high- and middle-income classes. It is a good start for Amazon to exploit a successful physical environment and understand the needs and expectations of customers.
In general, the benefits of acquisition between Amazon and Whole Foods cannot be ignored. Both companies may discover a number of new opportunities and improve their current positions in the market. People always want to try something new and evaluate their achievements. A physical grocery store from the point of view of Amazon is an innovation that deserves people’s attention.
Reference List
Abraham, S 2013, ‘Will business model innovation replace strategic analysis?’, Strategy & Leadership, vol. 41, no. 2, pp. 31-38.
Bowman, J 2018, ‘Amazon-Whole Foods is not what the market expected’, The Motley Fool. Web.
Dorfman, J 2017, ‘Amazon and Whole Foods merger to introduce cross-platform selling and lower prices’, Forbes. Web.
The Economist 2017, ‘Amazon’s big, fresh deal with Whole Food’. Web.
Herrera, S 2018, ‘Ex-Whole Foods exec: Amazon deal was best for company’s future’, Statesman. Web.
Pignataro, P 2015, Mergers, acquisitions, divestitures, and other restructurings, John Wiley & Sons, Hoboken, NJ.
Potter, G 2017, ‘The synergy between Amazon and Whole Foods’, Westminster Consulting. Web.
Taylor, K 2017, ‘Here are all the changes Amazon is making to Whole Foods’, Business Insider. Web.