Toggle navigation
Home
Ask A Question
Answer Questions
Users
Support/FAQ
Login
Register
Preview 50% of the Answer Below
Due to formatting, images, tables, or paragraphs may be out of place or not shown. Rest assured that they will be included and formatted correctly in your purchased answer.
Details
Question Title:
Can Amazon Trim the Fat at Whole Foods?
Go Back to the Question
Answer Preview
</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 United XXXXXX, Canada and the XXXXXX XXXXXXX: XXXXXXX XXX organic XXXXX, XXXXXXX XXXXXXXXX, XXX sustainable and ethical agriculture. With the boom XX high-income employment communities in sectors XXXX XX XXXXXXXXXX and finance, XXXXXXXXX with high XXXXXXXXXX incomes in coastal XXXXXX XXXX as XXX York and XXX XXXXXXXXX XXXXXX XXXX natural XXX XXXXXXX foods. College XXXXXXXX who were XXXXXXXXXXX in XXXXXX wanted XXXXX XXXX XXXX ethically XXX XXXXXXXXXXX sourced, in order that XXXXX XXXXXXXXXXX patterns XXXXX contribute XX environmental XXXXXXXXXX XXX combating climate change. XXXXXXX, a wave of food scandals from regions such as China and XXXXX America led XXXXXXXX XXXXXXXXX XX XX more XXXXXXXXX XX XXXXXXX standards and XXX value of XXXXXXXX their food locally. This XXXXXXX Whole XXXXX to charge a premium for XXXXXXX, XXXXXXX, quality XXX sustainable produce given that XXXXXXXXX XXX a higher XXXXXXXXX XXXXX for XXXXX Foods XXXXXXXX.</p> <p><span XXXXX="s1"></span> </p> <p><span class="XX">XXXXX XXXXX XXXXXXXXXX lost XXX XXXXXXXXXXX advantage XXX XXXXXXXXXXXXXX its XXXXXXXXXXX because of the 2008-XXXX XXXXXXXXX, XXXXXXXXXX XXXXXXXXXXXXX XXXX XX high cost XXXXXXXXX, XXX an increase in the XXXXXXXXXXX in XXX XXXX-end produce market. XXXX, respectively, XXX to a XXXXXXXX in demand for XXXXX Food XXXXXXXX, a XXXX in XXXXX, and a loss in XXXXXXXXXXX XXXXXXXXX, which caused Whole XXXXX XX underperform competitors XXXX XX Trader XXXX.<span XXXXX="Apple-converted-XXXXX"></span></span></p> <p><span XXXXX="s1"></span> </p> <p><span class="XX">2.<span class="Apple-converted-XXXXX"></span></span>Whole Foods was stuck in XXX middle because of XXX XXXXXXXXXX disadvantages, the 2008 XXXXXXXXX, an XXXXXXXX in competitive intensity, XXX a failed XXXXXXXXXXXXXX XXXXXXXX. XXXXXXXX, it was XXXXXXX XXXXXXXXXXXX by the XXXX cost of selling premium XXXXX, a need for XXXX turnover, XXX the use XX XXXXX sourcing, XXXXX XXXXXXX XXXXXXX of scale XXXXXXXXXX. These XXXXXXXXXX disadvantages led to reduced XXXXXXXXXX and higher XXXXX. XXXX, Whole Foods was XXX by XXX Great Recession, which led XX a fall in XXXXXXXXXX incomes and a reduction in demand XXX XXXXXXX XXXXX Foods products XXXXX XXXX highly XXXXX elastic in XXXXX XX income. Third, XXXXX Foods’s competitors started XXXXXXXX premium XXXXXXX XXXX XXXXXX, XXXXX eroded the value XXXXXXXXXXX XX XXXXX Foods. XXXXXXX, XXXXX Foods did XXX launch a XXXXXXXXXX XXXXXXXXXXXXXX strategy of XXXXXXXXXX on XXX XXXXXXX XXX pursuing cost XXXXXXXXX.<span XXXXX="Apple-converted-XXXXX"></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="s1">X.</span>Amazon is XXXXXX XX XXXXXXXXXXX costs XXX push e-commerce XXXXXXXXXXX through XXX XXXXXXXXXXX with Whole XXXXX. Foremost, XXXXXX XX likely XX XXXXX XXX XXXX structure of XXXXX Foods through its XXXXXXXX proprietary XXXXXXXXX technology and XXXXXXXX supply XXXXX management XXXXXXXXXX. Amazon XXXX be able XX XXXX significant XXXXXXX XX scale advantages by XXXXXXXXXXX its XXXXXX XXXXX XXXX that XX Whole Foods. Secondly, XXXXXX is likely to XXX XXXXX XXXXX, and XXX high-end income XXXXXXXX XXXX XXXX XXXXX Foods XXX XXXXXXXXXXXXX relied XX, to XXXXX XX a XXXXX XXXX for its e-XXXXXXXX initiatives. This XXXXX allow XXXXXX XX XXXXX XXXXX XXXXXXXXXXX XXXX XXX increase the quality XX the XXXXXXX consumer XXXXXXXXXX for XXX XXXX-XXX XXXXXXXX XXXXXX in the XXXX XX food retail.<span XXXXX="Apple-converted-space"></span></p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="XX">X. Amazon XXXXXXXX XXXXX Foods for XXXXX XXX XXXXXXXXX reasons: to pilot its e-XXXXXXXX initiatives, to XXXX brand XXXXXX XX a XXXXXXXXXXX XXXXX, XXX to compete more XXXXXXXXXXX with Walmart. XXX XXXXX reason is XXXX an operational XXX. Foremost, XXXXXX XXXXXX a XXXXXXXXXXX that XXXXXXXX a digitally-savvy, higher-XXX consumer XXXX XX pilot its e-commerce XXX XXXXXXX customer XXXXXXXXXX initiatives. XXXXX Foods XXX therefore a XXXXXXX XXX XXX XXXXXX’s initiatives XXXXX XXX XXXXXX XXXX. XXXXXXXX, Amazon XXXXXX XX capture XXXXX equity, XXXXXXX the fame XXX XXXXXXXXXX XXXX reputation XX XXXXX Foods, at a relatively XXX XXXXX. Given XXXX Whole XXXXX XXX in XXXXXXXX XXXX Amazon acquired it, XXXXXX XXX XX XXXXXXXXXX XX have been reasonably strategic in its acquisition. Finally, Amazon XXXXXX XX compete XXXX effectively with main rivals such as Walmart, in XXXXXX XXXXX XXXXX XXXXXXXX its XXXXXXXX presence while helping XX XXXXXXX XXX digital XXXXXX and online shopping. Amazon’s XXXX may XXXXXXXXX be seen as the mirror move XXXX XXXXXXX XXXX when XXXXXXX acquired <a href="http://XXX.XXX/"><span class="XX">jet.XXX</span></a>.<span class="Apple-XXXXXXXXX-space"></span></span></p>">
