Question

Amazons take over of Whole foods has changed the retailing style and added value to E commerce. How will this impact other ecommerce buisnesses like Walmart who has an online ans on ground stire ?

Answer 1

The acquisition of Whole Foods by Amazon brought significant change in the e-commerce market in the USA. Amazon's strategy to occupy the vertically integrated company Whole Food influenced other e-commerce organizations to adopt the acquisition strategy. The sudden growth of the acquisition strategy put other vertically small business organizations into the backfoot. The companies started losing identity as big shot e-commerce companies started occupying the smaller entities. Thus, aftereffects of Amazon's taking over of Whole Foods are mentioned below:
•   Adaptation of acquisition strategy: Other e-commerce companies started adopting the acquisition strategy. For example- companies like Walmart occupied Bonobos.
•   Inventory development: The e-commerce organizations started developing their inventory capability to maintain an alignment between supply and demand. Amazon’s improvement in the inventory capability of Whole Foods company influenced other organizations to ensure the flow of supply chain around the world.
•   Unethical use of power: Most of the e-commerce organizations started utilizing muscle power and financial power unethically to occupy the small companies. Small retail shops fail to perform in the competitive market and started losing market share radically. It created a situation of market monopoly.
Thus, Amazon's taking over Whole Food significantly changed the e-commerce market in the USA by introducing acquisition strategy efficiently. The impacts of this acquisition strategy have clarified that e-commerce markets need more ethical codes to ensure their integrated standard.