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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 XXX the XXXXXX XXXXXXX: natural XXX XXXXXXX XXXXX, XXXXXXX XXXXXXXXX, XXX XXXXXXXXXXX XXX ethical agriculture. XXXX XXX XXXX of high-income XXXXXXXXXX communities in XXXXXXX such XX technology and XXXXXXX, consumers XXXX XXXX disposable XXXXXXX in XXXXXXX XXXXXX such as New York XXX San XXXXXXXXX wanted more natural and XXXXXXX XXXXX. College XXXXXXXX who were progressive in XXXXXX XXXXXX XXXXX that were XXXXXXXXX XXX XXXXXXXXXXX XXXXXXX, in order XXXX their consumption patterns could contribute to XXXXXXXXXXXXX protection and XXXXXXXXX climate change. Finally, a wave of food scandals XXXX regions XXXX XX XXXXX and XXXXX America XXX American consumers to be XXXX XXXXXXXXX XX quality standards and the value XX sourcing their food XXXXXXX. XXXX allowed XXXXX XXXXX XX XXXXXX a premium for XXXXXXX, XXXXXXX, quality and XXXXXXXXXXX XXXXXXX given XXXX XXXXXXXXX XXX a XXXXXX XXXXXXXXX XXXXX for Whole XXXXX XXXXXXXX.</p> <p><span XXXXX="XX"></span> </p> <p><span class="XX">XXXXX Foods XXXXXXXXXX XXXX its XXXXXXXXXXX XXXXXXXXX XXX underperformed XXX competitors because of XXX 2008-2009 XXXXXXXXX, underlying disadvantages XXXX as high XXXX structure, XXX an XXXXXXXX in XXX XXXXXXXXXXX in the high-end XXXXXXX XXXXXX. This, XXXXXXXXXXXX, led XX a decrease in XXXXXX XXX XXXXX XXXX products, a XXXX in XXXXX, and a loss in competitive XXXXXXXXX, which caused XXXXX Foods to underperform XXXXXXXXXXX XXXX as XXXXXX XXXX.<span XXXXX="Apple-XXXXXXXXX-space"></span></span></p> <p><span class="XX"></span> </p> <p><span XXXXX="s1">2.<span XXXXX="Apple-converted-space"></span></span>XXXXX XXXXX XXX XXXXX in XXX XXXXXX XXXXXXX XX XXX underlying disadvantages, the XXXX XXXXXXXXX, an XXXXXXXX in competitive XXXXXXXXX, XXX a failed revitalization XXXXXXXX. Foremost, it was heavily XXXXXXXXXXXX XX the high cost of XXXXXXX premium goods, a need XXX XXXX XXXXXXXX, and XXX use XX local XXXXXXXX, XXXXX XXXXXXX economy of XXXXX advantages. XXXXX XXXXXXXXXX XXXXXXXXXXXXX XXX XX reduced XXXXXXXXXX and higher XXXXX. XXXX, XXXXX Foods XXX hit XX the XXXXX XXXXXXXXX, which led to a fall in XXXXXXXXXX XXXXXXX XXX a XXXXXXXXX in XXXXXX XXX XXXXXXX Whole XXXXX XXXXXXXX which XXXX highly price elastic in XXXXX of XXXXXX. XXXXX, Whole Foods’s competitors started XXXXXXXX premium organic XXXX XXXXXX, XXXXX XXXXXX the XXXXX proposition XX Whole Foods. Finally, Whole Foods XXX XXX launch a XXXXXXXXXX revitalization strategy XX XXXXXXXXXX XX its mission XXX XXXXXXXX XXXX XXXXXXXXX.<span class="Apple-XXXXXXXXX-XXXXX"></span></p> <p><span XXXXX="XX"></span> </p> <p><span class="s1"></span> </p> <p><span XXXXX="XX">3.</span>XXXXXX XX likely XX XXXXXXXXXXX costs XXX push e-XXXXXXXX XXXXXXXXXXX XXXXXXX XXX XXXXXXXXXXX XXXX XXXXX XXXXX. Foremost, Amazon is likely to lower the XXXX structure XX XXXXX Foods through XXX XXXXXXXX proprietary XXXXXXXXX XXXXXXXXXX XXX advanced supply chain XXXXXXXXXX techniques. XXXXXX XXXX be able XX XXXX significant economy of scale XXXXXXXXXX by integrating its supply XXXXX XXXX that of Whole Foods. Secondly, Amazon XX likely to XXX XXXXX XXXXX, XXX XXX XXXX-XXX XXXXXX XXXXXXXX XXXX XXXX XXXXX XXXXX XXX XXXXXXXXXXXXX relied on, XX XXXXX XX a XXXXX XXXX XXX XXX e-commerce XXXXXXXXXXX. XXXX would XXXXX XXXXXX to XXXXX XXXXX XXXXXXXXXXX XXXX XXX XXXXXXXX XXX quality of the digital XXXXXXXX XXXXXXXXXX for XXX high-end consumer market in XXX area of food retail.<span XXXXX="Apple-XXXXXXXXX-XXXXX"></span></p> <p><span XXXXX="XX"></span> </p> <p><span class="s1">X. Amazon XXXXXXXX XXXXX Foods XXX three key strategic XXXXXXX: to XXXXX its e-commerce XXXXXXXXXXX, to gain brand XXXXXX at a XXXXXXXXXXX price, and to compete XXXX XXXXXXXXXXX XXXX XXXXXXX. XXX final reason is XXXX an operational XXX. Foremost, Amazon needed a supermarket XXXX XXXXXXXX a XXXXXXXXX-XXXXX, XXXXXX-XXX XXXXXXXX base XX pilot its e-commerce XXX XXXXXXX customer XXXXXXXXXX XXXXXXXXXXX. Whole Foods was XXXXXXXXX a natural XXX XXX XXXXXX’s XXXXXXXXXXX given its client base. XXXXXXXX, Amazon wanted XX capture XXXXX XXXXXX, XXXXXXX XXX XXXX XXX XXXXXXXXXX good reputation XX XXXXX XXXXX, at a relatively XXX XXXXX. XXXXX XXXX XXXXX Foods was in XXXXXXXX when Amazon acquired it, Amazon XXX be XXXXXXXXXX to have been XXXXXXXXXX strategic in XXX acquisition. XXXXXXX, Amazon sought to compete XXXX effectively with main rivals XXXX as XXXXXXX, in XXXXXX XXXXX Foods XXXXXXXX XXX physical presence while XXXXXXX XX XXXXXXX XXX XXXXXXX retail XXX online shopping. Amazon’s XXXX may therefore XX XXXX XX XXX mirror XXXX that Walmart used XXXX XXXXXXX XXXXXXXX <a href="XXXX://XXX.XXX/"><span class="XX">jet.XXX</span></a>.<span XXXXX="XXXXX-converted-space"></span></span></p>">
