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Question Title:
Can Amazon Trim the Fat at Whole Foods?
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</span> </p> <ol> <li><span class="s1">Why was Whole Foods successful initially? Why did it lose its competitive advantage and underperform its competitors?</span></li> <li><span class="s1">Why did Whole Foods end up being ‘stuck in the middle’?</span></li> <li><span class="s1">What changes do you expect at Whole Foods following the integration with Amazon?</span></li> <li><span class="s1">Why did Amazon acquire Whole Foods? Operational and strategic reasons? Good move for Amazon to acquire? Why or why not?</span></li> </ol> <p><span class="s1"></span> </p> <p><span class="s1"></span> </p> <p><span class="s1">1.<span class="Apple-converted-space"></span></span>Whole foods was initially successful because of a rise in demand for its three key value propositions in its markets of the XXXXXX XXXXXX, XXXXXX and XXX XXXXXX Kingdom: natural and XXXXXXX foods, XXXXXXX standards, XXX sustainable XXX ethical agriculture. XXXX XXX boom XX high-XXXXXX XXXXXXXXXX communities in XXXXXXX XXXX as XXXXXXXXXX XXX XXXXXXX, consumers XXXX XXXX XXXXXXXXXX XXXXXXX in XXXXXXX cities such as New York and San XXXXXXXXX XXXXXX more XXXXXXX XXX organic foods. College XXXXXXXX XXX were XXXXXXXXXXX in values wanted XXXXX XXXX XXXX ethically XXX sustainably sourced, in order XXXX XXXXX XXXXXXXXXXX patterns could XXXXXXXXXX XX XXXXXXXXXXXXX XXXXXXXXXX and combating climate change. XXXXXXX, a wave of food scandals XXXX XXXXXXX such XX XXXXX and South XXXXXXX XXX American XXXXXXXXX to be more XXXXXXXXX XX XXXXXXX XXXXXXXXX XXX XXX value XX XXXXXXXX their food locally. XXXX allowed XXXXX Foods XX XXXXXX a XXXXXXX for organic, natural, quality and sustainable produce XXXXX XXXX XXXXXXXXX had a XXXXXX XXXXXXXXX value XXX Whole XXXXX products.</p> <p><span XXXXX="s1"></span> </p> <p><span class="s1">XXXXX Foods eventually XXXX its competitive XXXXXXXXX and underperformed XXX XXXXXXXXXXX because of the 2008-XXXX XXXXXXXXX, underlying disadvantages such as high XXXX structure, and an increase in the XXXXXXXXXXX in the high-XXX produce XXXXXX. This, respectively, led XX a decrease in XXXXXX XXX XXXXX XXXX XXXXXXXX, a XXXX in costs, XXX a loss in XXXXXXXXXXX XXXXXXXXX, XXXXX XXXXXX Whole Foods XX underperform XXXXXXXXXXX such as XXXXXX XXXX.<span class="Apple-XXXXXXXXX-XXXXX"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span class="s1">2.<span class="XXXXX-XXXXXXXXX-XXXXX"></span></span>Whole Foods XXX XXXXX in the middle XXXXXXX of XXX XXXXXXXXXX XXXXXXXXXXXXX, XXX 2008 recession, an increase in competitive XXXXXXXXX, and a XXXXXX XXXXXXXXXXXXXX strategy. Foremost, it was heavily disadvtanged XX XXX XXXX cost of selling XXXXXXX XXXXX, a XXXX for XXXX turnover, XXX XXX use of local XXXXXXXX, XXXXX limited XXXXXXX XX XXXXX XXXXXXXXXX. XXXXX structural XXXXXXXXXXXXX XXX XX XXXXXXX XXXXXXXXXX and higher XXXXX. XXXX, Whole Foods XXX hit XX XXX Great XXXXXXXXX, which led XX a XXXX in XXXXXXXXXX incomes XXX a XXXXXXXXX in XXXXXX XXX premium Whole XXXXX XXXXXXXX which were XXXXXX XXXXX XXXXXXX in terms of XXXXXX. Third, XXXXX Foods’s competitors XXXXXXX XXXXXXXX premium XXXXXXX food ranges, which XXXXXX the XXXXX proposition XX XXXXX Foods. XXXXXXX, XXXXX Foods XXX XXX launch a successful XXXXXXXXXXXXXX strategy XX XXXXXXXXXX on its mission and pursuing cost XXXXXXXXX.<span class="Apple-XXXXXXXXX-space"></span></p> <p><span XXXXX="XX"></span> </p> <p><span class="XX"></span> </p> <p><span class="s1">3.</span>Amazon XX likely to XXXXXXXXXXX XXXXX and XXXX e-XXXXXXXX XXXXXXXXXXX XXXXXXX its XXXXXXXXXXX with XXXXX XXXXX. XXXXXXXX, Amazon XX likely XX XXXXX XXX XXXX XXXXXXXXX of Whole XXXXX through its XXXXXXXX XXXXXXXXXXX XXXXXXXXX technology and advanced supply chain XXXXXXXXXX XXXXXXXXXX. Amazon will be able XX XXXX XXXXXXXXXXX economy XX XXXXX XXXXXXXXXX XX XXXXXXXXXXX its supply chain XXXX XXXX of Whole Foods. Secondly, Amazon is likely to XXX Whole XXXXX, XXX XXX high-XXX XXXXXX XXXXXXXX base XXXX XXXXX Foods XXX XXXXXXXXXXXXX relied XX, to serve as a XXXXX test for its e-XXXXXXXX XXXXXXXXXXX. XXXX would allow XXXXXX to trial novel XXXXXXXXXXX XXXX XXX increase the quality XX the XXXXXXX consumer experience for XXX high-end XXXXXXXX market in XXX XXXX XX food retail.<span XXXXX="XXXXX-converted-XXXXX"></span></p> <p><span class="XX"></span> </p> <p><span class="XX">4. Amazon XXXXXXXX XXXXX Foods XXX three key strategic reasons: to pilot its e-XXXXXXXX XXXXXXXXXXX, XX gain XXXXX equity XX a competitive price, and XX XXXXXXX more effectively XXXX Walmart. The final XXXXXX is XXXX an XXXXXXXXXXX XXX. XXXXXXXX, XXXXXX XXXXXX a XXXXXXXXXXX XXXX XXXXXXXX a XXXXXXXXX-savvy, higher-XXX consumer XXXX to XXXXX XXX e-XXXXXXXX and digital XXXXXXXX experience XXXXXXXXXXX. XXXXX Foods XXX therefore a XXXXXXX fit for XXXXXX’s XXXXXXXXXXX given its client XXXX. XXXXXXXX, XXXXXX wanted XX capture brand XXXXXX, XXXXXXX the fame and XXXXXXXXXX XXXX XXXXXXXXXX of XXXXX XXXXX, at a relatively low price. Given that Whole Foods was in distress when Amazon acquired it, Amazon may be XXXXXXXXXX XX have been reasonably XXXXXXXXX in its acquisition. Finally, XXXXXX XXXXXX to compete XXXX XXXXXXXXXXX XXXX XXXX rivals XXXX as Walmart, in having XXXXX XXXXX buttress its XXXXXXXX XXXXXXXX while helping to XXXXXXX XXX XXXXXXX retail and XXXXXX shopping. Amazon’s XXXX may therefore be seen as the XXXXXX XXXX that XXXXXXX used when XXXXXXX acquired <a href="http://XXX.com/"><span XXXXX="XX">XXX.com</span></a>.<span XXXXX="XXXXX-converted-XXXXX"></span></span></p>">
