What do you think of Amazon's acquisition of Whole Foods?

Expert Solution

Amazon acquisition strategy made the Whole Food's unique distribution strategy to more efficient and strategic.

Explanation:

Amazon is a leading online retail giant globally and has the strategy to continue its growth strategy. In that case, the motivation for the acquisition was for growth and expansion strategy.This is because Amazon would come in to improve the supply chain strategies for the Whole Foods which would improve on the delivery and customer experience. Amazon also needed to integrate its customer base by adding Whole Foods into its production and distribution processes. The consumers from the Whole Foods who are now integrated with those of Amazon can now enjoy efficient services as they can offer for the grocery products online. This is key for the personalized products and services which corresponds to the customer needs in the modern world. Amazon's value has also increased since the acquisition was approved with its value hitting $1 trillion in 2018 before drops in share value.

The Amazon acquisition strategy made the Whole Food's unique distribution strategy to more efficient and strategic.Whole Foods had challenges with its distribution strategies as well as dealing with the challenge of delivering fresh groceries. The distribution strategy is now much more improved and many customer are now linked together through the Amazon's e-commerce platform. The acquisition which was considered worth $14 billion has therefore resulted in greater value and improved distribution or supply chain system for Amazon.

keosha answered 1 year ago

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