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Amazon And Whole Foods

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THE AMAZON AND WHOLE FOODS
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Introduction
THE AMAZON The Amazon Company was established on May28, 1996. The company offers a wide range of products and services through its online platforms. Through the online platform, the company has been able to reach different markets and it is subdivided in to three segments: North America, International and Amazon Web Services (AWS). Some of the products of the company include merchandise and second hand goods. Also, the company manufactures and sells electronic devices. The Company has merged with Whole Food Market, Inc., which offers healthy and organic food and staples across its stores. Also, it has gone a step further by introducing new products …show more content…

Through the Amazon’s wing, the grocery has been able to reach different client and challenge some of its stiff competitors in the market such as Kroger, Walmart, and other grocery chains. The organization runs its operations in two different divisions which include perishables and non-perishables. Perishables account to about two-thirds of company sales which includes prepared foods and bakery which is the largest individual category at the rate of 20% of the total sales, while non-perishables accounts to the remaining percentage. Also, it has a different segment known as United Natural Foods which is believed to be its single largest third-party supplier, amounting to about a third of Whole Foods total …show more content…

The Amazon and Whole Food Market, Inc. deal with health and nutrition health products. However, they have been facing a lot of competition from their rivals in the market. They have come with new strategies in the market which will help them to stay relevant in the business. They have introduced new products in the market. They have come up with an online platform where they are able to market their products. By doing this, they have able to get new clients and also maintain their loyal clients. Through the online platform, they have a website where they can interact with their clients on a one on one platform and they are able to understand their choice of

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This week , Jeff Bezos, CEO of Amazon, purchased high-end grocer Whole Foods Market causing a painful stock devaluation amongst other retail grocers, according to Michael Hilzick, LA Times staff writer. While Bezos paid top dollar for the company, and improved Amazons stock price; other grocery sellers watched stock values plunge as much as 9% , as was the case for Walmart. Most confusing to stock watchers is what Amazon hopes to gain with the purchase: consumer data, distribution centers, retail store fronts, or on-line grocery market share? The purchase of Whole Foods gives Amazon access to more than 400 high-end store fronts and strategically located distribution centers around the world.

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Trader Joe’s, a specialty store, and Whole Foods Market, an upscale grocery store, are in the running as well. Whole Foods focuses on natural and organic products, and Trader Joe’s provides unique product selection and other quality products, as well as a unique customer experience. Fortunately, H-E-B has maintained a strong position in the industry, but they must continue to prioritize their pricing, quality, and customer experience, ensuring they meet their consumer needs to stay afloat in the vastly changing industry. H-E-B’s current strategy consists of many aspects that focus on customers, innovation, and the community. These components have allowed H-E-B to remain in the competitive position it has in the market.

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For these reasons, it is imperative to continue to adapt and monitor the market place to be vigilant against threats to market share (Jindal, Sarangee, Echambadi & Sangwon, 2016). In the case of Whole Foods 365, Trader Joe’s will require ample efforts to minimize the effect and threat it and others will

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One of the mergers was with Vitacost.com, a leading online retailer in the nutrition and healthy living market. The other important merger in the technology space was with You Technology, a leader in digital coupons and promotions. To improve customers’ shopping convenience and frequency in order to improve their sales and stay competitive. Companies are expanding their prepared food and to-go offerings. Online ordering expects to rise as it appeals to retailers’ convenience-seeking customers.

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Very recently Whole Foods partnered with Instacart (a collection of independent contractors who shop based on a list they receive from shoppers and deliver to the doorstep). This strategic partnership allows

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Online shopping offers convenience and ease that many consumers prefer over going out to a store and physically purchasing a good. It is intriguing to see that a store like Amazon would be looking to get involved in the supermarket industry, and as Stephen King once said, “I like Amazon as much as anyone, I guess, but leave food prep to the people who understand it and do it well. That would be Blue Apron. ” I would still prefer to buy my groceries at a supermarket, but it will be interesting to see how the merger works out for both Amazon and Whole Foods.

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In which, ready to cook meal ingredients are delivered in a package. The services will resemble what Blue Apron is doing right now.    Last month Amazon announced its plans to buy supermarket chain Whole Foods for $13.7 billion. Amazon also operates Amazon Fresh in the US for grocery delivery since 2007. Moreover, Amazon Go is a physical store for the grocery that is on a trial in the state of Seattle without check-out counters or lines.

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If Amazon and Whole Foods teamed up, they would enjoy a “3.5% market share" (p. 25). Akin to ad-sharing on the internet, Amazon and Whole Foods could have cross- over appeal to their consumers. “Perhaps Amazon can convert Whole Foods customers to Amazon Prime members, and Amazon could

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Improve the Supply Ability 3.1 Non mass-market channel Mass-market channel includes supermarkets, grocery stores, mass merchandisers and club stores. Non mass-market channel refers to farmer’s markets food service and other non-retail sales. Whole Foods may sign contracts with reliable farmers or non-retail sales to provide raw material to them. However, that strategy is a bit risky on product quality. A better alternative is to look for resources outside of U.S. to meet the growing demand.

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Key elements of the company’s growth strategy are the opening of new stores, acquisitions, and increasing store sales. Whole Foods strives to promote a strong company culture featuring a team approach to store operations that they believe is distinctly more empowering to team members than that of the traditional supermarket. Whole Foods Market stores each generally employs between 55 and 650 team members who make up approximately 10 self-managed teams per store. Each team is led by a team leader and each team is responsible for a different product offering or aspect of store operations such as prepared foods, grocery, or customer service, etc. Whole Foods also promote a decentralized approach to store operations in which many decisions are

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While the demand for organic food is ever increasing, the supply has yet to catch up, making the produce available come at a steep price. Wholefoods has made a name for itself as an all organic food store, however in doing so they have boxed themselves into a niche market, which they can’t seem to get out of. This niche market also leaves little room for growth

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To start off, Amazon the worlds number one online E-Commerce retail business, is trying to buy Whole Foods which is known for their healthy, high quality foods at a higher cost then regular grocery stores. Amazon has a very good background when it comes to online sales and deliveries. Amazon saw an opening with Whole Foods in that if the two work together they can bring consumers more convenience when buying groceries online then picking them up at a local Whole Foods store. That alone plus is a huge step forward for both companies and consumers as well. Amazon could also help in the department of lowering the prices on all Whole Foods Products so that anyone can afford it no matter the budget, that's what Amazon is known for, their low prices.

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History: Whole Foods Market, Inc. is the leading natural food supermarket chain in the United States. The company has one operating sector, natural and organic foods supermarkets. Whole Foods products include bakery, bulk, coffee & tea, grocery, prepared food, seafood, whole body, beer, cheese, floral, meat & poultry, produce, wine and pets. (Wholefoodsmarket.com) Whole Foods Market was founded in Austin, Texas when four local businessmen decided to reinvent the natural foods industry.

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Earlier this summer, e-commerce giant Amazon announced that it would be buying high-end organic grocery chain Whole Foods for $13.7 billion; the deal officially closed at the end of August. While the acquisition has been off to a rocky start, it gives Amazon hundreds of physical stores and provides the company a strong entryway into the competitive grocery and food industry. Amazon has proved that the acquisition with Whole Food was the best that was ever done. Amazon surprised shoppers with its acquisition of the grocery chain. It proved Amazon was serious about operating old fashioned brick-and-mortar stores at a large scale.

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North America, International, and Amazon Web Services [AWS]). Strategic Implementation With its recent acquisition of grocery provider Whole Foods (Adamson, 2017), expansion to target market number 1 (TMN1) must be pursued in its International segment through, first, reviewing continents for potential acquisitions with Whole Foods’ comparable markets; second, conducting a thorough business, financial, and organizational review of the top three potentials in each country; third, approach to offer a reasonable price for full ownership preferably (or majority ownership, otherwise); and, fourth, close the transaction and complete the legal workup. With regards to target market number 2 (TMN2), the same four-step process will be adequate with expected fewer efforts expended in the first and second steps due to its existing business relationships with the candidate service providers in its supply chain.

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