Amazon Go: Venturing into Traditional Retail Case Study Help
Evaluation of Whole Foods acquisition:
With the change in the consumer perception regarding their interaction with the grocery stores tend to be focused on the production and preferential choiceof the customers to purchase new, local and fresh from unknown brands but within less time. Whereas, the acquisition of Whole Foods tend to represent a large number of synergies to the Amazon which mainly includes to be the among the top five grocer at international level by the year 2025. Additionally, it tend to be interlinked to provide Amazon with the access to anwealthy consumer segment who are already concerned about their clean, healthy, and label food.
The acquisition of Whole Foods tend to reflect the changes in the demographics of the consumer base i.e. Amazon is the only way millennials know to do shopping. In recent times, millennials have seen the shopping and experienced it in the form of Amazon which has now turned out to be abundant in the life of each individual. The two-thirsof the individuals or the shopping lovers who have attended college mainly belong to the age of free Amazon Prime to order their textbooks. In different cities, customers are already toadapted to the product delivery in just about two hours by Prime Now.
Yet, the Whole Foods only demonstrated an approximate of 1.2 percent share in the grocery market of the United States whereas Amazon demonstrated 0.2 percent. In contradiction, the overall purchase of the food and beverage mainly accounted to about 2 percent of the total food and beverage market of the United States.Considering the fact, the response of customers against the changes in the marketplace tend to be dramatic but it significantly reflects the brand awareness through the changes in the financial market. This demonstrates that the purchase is known to signify the deeper changes rather signifying the delivery mechanism or venue in terms of purchasing food products. According to an analyst, the acquisition of Whole Foods by Amazon might tend to be a game changer in the market. Due to the reason that the strategic approach of Amazon tend toenforce other retailers such as Wal-mart and Target to question their retailing services. (Connolly, 2017 )
Potential issues in acquisition:
One of the key issues in the acquisition tend to be associated with Whole foods i.e. it operated at regional level. Due to this reason, in order to be the national retailer of grocery products, Whole Foods would need to be cost-efficient. On the other hand, the activities of Amazon and Whole Foods might find it difficult to make a successful alignment which might tend to a big issues in the management of the activities between both the organizations. This might be due to the resistance of change by the employees in the organization. Additionally, the returns expected from the acquisition might not be as much attractive as estimated which might lead to the non-materialization of the executed cost. Futhermore, in terms of improving the product diversification, Amazon might create problem for itself associated with the management of the resources and the core competencies that it persists. Consclusively, too much focus and reliance on the profit generation might tend to be detrimental to the internal development of the organization.
Conclusion:
Amazon is one of the leading digital retailer organizations offering its services through the website in about 14 different countries and shipping services in about 75 countries across the world. Since 2001, Amazon had demonstrated significant expansion and diversification of the products and services through increased product offerings. Amazon tends to be customer-centric which is primarily based on the concept that works hard on efficiency. The competitive advantage of Amazon mainly involves its innovative marketing strategy, continuous investment, strong brand awareness, supply chain, and customer centricity...............................
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