Business Analysis: Whole Foods

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On Friday it was announced that Amazon recently purchased natural and organic food market Whole foods for $13.7 billion. The retail giant made the decision to purchase the market due to it’s attempt to break into brick-and-mortar stores according to an article previously written, ironic since several retail stores have been hurt by the success of Amazon. Dr. Douglas Olsen, associate professor of marketing at Arizona State University, feels the pair is a beautiful fit. “Whole Foods has a positive image,” Olsen said. “Whole Foods cares about there customers a lot”. According to Olsen, Amazon cares about there customers as well, along with efficiency, where Whole Foods may not be as a efficient. Causing the pair to simultaneously work together. …show more content…
An article written by Business insider explained Amazon plans on replacing cashiers with technology that does not require human operation and price cuts to make the products more affordable for lower and middle incomes. “Price is the easiest thing to compete on,” Olsen said. Olsen continued to explain how it is easy to change price of items but it’s the mindset of higher price, better quality of food, which may cause Whole Foods to lose a little on that front but not much. An alternative to just lowering the prices would be giving customers the ability to buy in larger bulk so prices are more affordable, according to Westlake. According to Olsen, Whole Foods has created a culture all it’s own. Westlake is a long time member of this culture and hopes with the changes Amazon puts in place, they do not lose sight of what is important, “Community involvement and local events are important.” Westlake also stresses the importance of buying local. When the Whole Foods in Chandler was contacted about the speculated job cuts and the recent purchase, store manager shared that she was unable to comment on …show more content…
“Prime Pantry allows Amazon to expand its selection and offer thousands of items to Prime Members that are cost prohibitive to ship for free individually,” according to Amazon’s website. “I enjoy shopping in person,” Westlake said. “I want to pick my own produce and find items on sale or special that you can’t unless you are walking in the store. I might use a delivery service if I needed something specific and didn’t have time to go pick it up…personal delivery is of no interest to me.” According to Olsen, Amazon Pantry is an example of how Amazon cares for their customers by attempting to provide convenience for them.
Amazon also hopes to open a series of Amazon Go stores, which is “…a new kind of store with no checkout required. We created the world’s most advanced shopping technology so you never have to wait in line. With our Just Walk Out Shopping experience, simply use the Amazon Go app to enter the store, take the products you want, and go! No lines, no checkout,” according to their website. The first of the stores opened in December in

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