MANAGEMENT 4: Strategic Analysis of Whole Foods Acquisition

This case study examines the strategic implications of Amazon's acquisition of Whole Foods. It begins with an overview of the merger, highlighting the strengths of both companies, such as Whole Foods' established brand reputation and enjoyable workplace, and Amazon's e-commerce dominance. The analysis then delves into the weaknesses, including price pressures and potential food shortages, as well as the challenges of integrating the two distinct corporate cultures. Opportunities for industry growth, particularly for organic product sellers, and threats from increased competition are also discussed. The case study uses a SWOT analysis framework to provide a comprehensive understanding of the strategic challenges and opportunities faced by Whole Foods under Amazon's ownership, examining impacts on employees, suppliers, and the overall market.

trategi nal sisS c A y

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SWOT Analysis
Strength
Reputation:
Whole Food has 20 years of experienced in operating business. It has high brand image in the
market due to which employees and customers get attracted towards its services. Amazon also
has high brand image in the market. Merger helps both the company in order to spread the
business at the next level.
Enjoyable Workplace:
The company has enjoyable workplace for employees that help them to perform their duties and
responsibilities properly. It is recognized as one of the companies among the American best 100
companies to work for. It provides the good facilities to employees due to which it performs their
obligations properly. After Acquisition, the employees get more facilities from Amazon that
helps to enhance their performance.
High Quality Services:
It is observed that Whole Food Company provides the excellent quality of services to consumers.
Staffing and Training are the programs that the company applied in order to enhance the
performance of employees. The acquisition helps the company to offers the quality of services to
consumers across the world with a single click.
Availability:

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The company has high presence in the different divisions of the world in order to grab the high
market share such as it operates the business in 12 countries. Acquisition helps to spread the
business in all over the world (Campbell, Sandino, Barnett, & Snively, 2018).
Weaknesses
Lower Prices:
Price is a major factor for the company but after the acquisition, price is major weakness factor
that affects the business. After the acquisition, the prices of Whole Food have been decreases in
order to attract the consumers towards its services. Low prices of the company decrease the
amount of profit which is a major factor to operate the business.
Shortage of Food:
The demand of consumers has been increases in the market due to the easily availability of
products. The increasing demand of consumers affects the company in terms of shortage of food.
Amazon provides the services to prime users only due to which its brand image has been
affected.
Onerous and stress Inducing:
After the acquisition of Whole Food Company with Amazon, it is observed that the work of
employees have been increases. As per the analysis of the case study, the new system was
onerous and stress inducing. The new system affects their health as they are more pressurized
just because of inventory and the high work load. This system affects the performance of
employees in the negative terms which is not beneficial for the company for future survival in
the market.

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Suppliers
According to the analysis of case study, it has been found that the company has not noticed any
changes due to which they are not able to distribute the services on time or on different areas.
The services of suppliers have been changed due to changing the system of the company in terms
operating the business in the market. The suppliers are not able to provide the enough products to
the consumers due to shortage of food and also took time to design their new ways or new
techniques to distribute the services on time in different areas apart from old operating areas.
Suppliers are also the major reason that the company has shortage of food in order to provide the
services to consumers.
Opportunities
Opportunity for industries
According to analyst’s prediction, food and grocery industry has the opportunities to spread the
business to earn the revenue after the acquisition. As per the case study, Amazon wanted to add
more popular brands such as Coca-Cola in order to enhance the volume of sales. Coca-Cola or
more grocery companies gets the opportunity to spread their business at the international level
and enhance the volume of sales. Organic product sellers can also get the opportunity to spread
their business at the global level by increasing the volume of sales by providing the services
thorough Amazon (Campbell, Sandino, Barnett, & Snively, 2018).
Threats
Threat to the companies

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It has been seen that Amazon acquired Whole Food Company due to which the demand of
consumers has been increases. As the company gain the competitive advantage in the market
with the help of Amazon then the threat for competitors have been increases. There are various
companies that offer the similar services to consumers due to which the competition among the
companies have been increases.
Costco Wholesale Corporation, Kroger Co., and Sprouts Farmers Market Inc. are the companies
those have the high threat of competition from Whole Food Company due to its increasing
demand across the world with the help of Amazon (Campbell, Sandino, Barnett, & Snively,
2018).

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References
Campbell, D., Sandino, T, Barnett, J. & Snively, C. (2018). Whole Food Under Amazon. Harvard
Business School.