Reply to discussion post: Amazon

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Amazon’s largest acquisition was the purchase of Whole Foods Market for $13.7 billion in June 2017 (Ladd, 2019). Although the purchase of Whole Foods was risky, managers, shareholders and the public have different views on the merger’s performance. From a management standpoint, it is too early to judge the success of the merger since it has been less than two years since the acquisition. Despite the possibility of failure, management appears to be optimistic about the profitability of Whole Foods due to Amazon’s competitive and strategic advantage (Ladd, 2019). From a shareholder’s point of view, there are some pros and cons to Amazon’s initiative to cut prices on food. In order to increase sales, Amazon has made efforts to reduce the price of goods, which has improved sales in recent years (Duberstein, 2018). Contrary to the improvement in sales, further reduction of Whole Foods pricing may hinder Amazon’s profit margin, which can upset shareholders (Duberstein, 2018). From a public opinion standpoint, Amazon has received some negative backlash from their no-employee business model (Perrone, 2017). As amazon attempts to replace employees with technology, many Whole Foods employees are faced with the potential of losing their jobs. Some view Whole Foods shift to automation as a threat to America’s service and retail workforce (Perrone, 2017).

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