Amazon Company has been known to be the largest company that specializes in sales via cloud computing and electronic commerce. However, the company plans to buy Wholefoods, which will impact the industry in one way or another. The paper will be highlighting the impact to the industry upon Amazon buying Wholefoods. Wholefoods on the other hand is a supermarket in America that specializes on types of foods that do not have to be artificially preserved, for example hydrogenated fats, flavors and food colors. Wholefoods Company has been facing a financial as well as market challenges; therefore the decision to sell to Amazon is a rescue for the company (Hannaford, 2007) .
One of the impacts of Amazon move to acquire Wholefoods is on the investors of Whole Foods; from the statistics, it is evident that the day Amazon announced its plan to acquire Wholefoods, investor began to take another turn in sort for future markets (Treanor, 2010) . The fact that Wholefoods has quite a number of investors is a concern because these investors would be affected. The two companies seem to have been on opposite type of businesses and hence merging has become like an irony. Take a look at Amazon dealing with sales through electronic commerce and cloud computing while Whole Food deals with foods stuff. It is interesting because Amazon will have to develop a supply chain for all its products.
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Customers, on the other hand will experience rise in prices upon merging of the company. This will therefore make customers to have limited choice in the line of food system. The topic will evaluate the impact on suppliers, consumers, retailers as well as the investors of the food industry. It will also analyze the food industry so as to determine the level of impact of Amazon acquisition of Whole Food industry (Obeng et al, 2016) .
References
Hannaford, S. (2007). Market domination!: The impact of industry consolidation on competition, innovation, and consumer choice . Greenwood Publishing Group.
Obeng, E., Luchs, R., Inman, J. J., & Hulland, J. (2016). Survival of The Fittest: How Competitive Service Overlap and Retail Format Impact Incumbents’ Vulnerability to New Entrants. Journal of Retailing , 92 (4), 383-396.
Treanor, T. (2010). Amazon: Love them? Hate them? Let’s follow the money. Publishing Research Quarterly , 26 (2), 119-128.
