Amazon Wholefoods Market Case study

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Amazon Wholefoods Market Case study

The integration of Amazon Connect with Aspect Workforce Management (WFM) allows for a full cycle of workforce planning, including call volume predictions, personnel scheduling, schedule tracking, and performance evaluation. The marketing mix at Whole Foods Market allows the company to engage with customers. The marketing mix identifies the company tactics and activities that will be used to carry out the marketing strategy. The target customers of Whole Foods Market are engaged through the company’s developing marketing mix. The firm’s performance as the best-performing health food store chain in the United States is a result of its marketing mix’s effectiveness. Whole Foods Market is particularly adept at utilizing public relations to emphasize the advantages of its products and services. Over the last 24 years, Whole Foods Market has consistently generated double-digit revenue and is currently recognized as the industry leader in organic supermarkets. Care for the community, the finest quality organics and natural foods available, and long-term win-win partnerships with our suppliers are among the key values. The company is consistently regarded as one of the most socially responsible enterprises, and it recently received a fourth-place position in the Environmental Protection Agency’s Wholefood Marketing Mix for green flower partnerships. Each store can obtain products from local traders and manufacturers, resulting in a substantial amount of local trade and product sourcing. In addition, the company imports from worldwide vendors who have been carefully chosen and meet WFM and local criteria. Because of the strict restrictions, approval seals, and shorter shelf life of natural and organic goods, they are more expensive. Although they have solid initiatives in place at many levels of operations, including corporate functions, marketing, community engagement, and local business growth, I believe Amazon should not modify its mix because WFM is at a green stage of sustainability. However, they should adjust the mix to increase and optimize earnings because there is room for development in several areas.

The corporation, first and foremost, sells things directly. A tiny fraction of products are sold with a modest markup through Amazon’s online storefront, and inventory is stored in the company’s vast network of warehouses. Although Amazon’s business strategy is based on e-commerce, it has acquired and diversified throughout time, resulting in a portfolio of business models and revenue streams. Because they created the best customer experience, Amazon is the largest and most successful retailer in the Western world. When customers buy products online, they expect three things: Large Selection: Customers usually want to find the product they’re looking for, and this product should, of course, be available. WFM was a great acquisition for Amazon because it provides several benefits to Amazon Prime customers. Additional grocery savings, free delivery, and 5% cashback with the Amazon Prime Rewards Visa Card are just a few of the perks. Whole Foods offers an additional 10% discount to Amazon Prime members on on-sale grocery goods. These items are on sale for everyone, but Prime members get an additional 10% discount. Yellow signs denote the additional 10% discount, which may be found on hundreds of items across the stores. On orders of $35 or more, Whole Foods offers free 2-hour delivery to Amazon Prime members. It’s a bonus available just to Prime Members in certain areas. Amazon is a great place to shop for groceries. For orders over $35, Amazon Prime members enjoy free pickup at Whole Foods. You must specify a pick up time at checkout when placing an order on the Amazon app or website.

The dilemma that Amazon has with the distribution of Amazon Fresh is this: The state of online grocery shopping Looking at the market now, it doesn’t appear like internet delivery has had much of an impact on the supermarket retailing paradigm. The service is more popular in Europe than in the United States, but it has yet to catch on in the United States. Online grocery expenditure accounts for approximately 6-7 percent of the UK grocery market, 5% in France and the United States, and less than 2% in the rest of the world. Developing economies appear to have the most potential: according to a recent Nielsen study, 37 percent of buyers in the Asia Pacific said they have ordered food online, compared to only 13 percent in Europe. Worse yet, no one appears to be making any money. According to estimates in the United Kingdom, each delivery loses between £3-5. Some are profitable; for example, Ocado, a pure online UK supermarket, reported a pretax profit of slightly over 1% in 2016. Instacart claims to have a positive gross margin in ten of its 19 U.S. cities, but that’s before accounting for significant marketing and IT expenses. There are numerous reasons why online grocery delivery has failed to gain traction and become viable. The profit margins are razor-thin, the product is perishable, and the supply chain is costly and complicated. Additionally, the products are bulky and difficult to stack, raising transportation and handling costs. And it appears that most people prefer to squeeze their avocados before buying them.

Amazon announced the $13.7 billion purchase of Whole Foods Market. This is Amazon’s largest acquisition to date, dwarfing the $1.2 billion purchase of in 2009. Even though Amazon CEO Jeff Bezos has not provided any additional specifics regarding the transaction, it has been the hot topic of discussion in many parts of the market since its announcement. The deal’s possible deflationary impact and ramifications for the grocery business and the retail industry as a whole are two points of contention. While much has been made of how much the alliance between these two business behemoths threatens retailers and grocery shops, restaurants are unlikely to be affected shortly. In the long run, though, Amazon offers a greater threat. The tech behemoth has vast consumer data collection capabilities, and its online convenience has drained retail sites, resulting in a drop in restaurant sales. This graph depicts the financial impact of WFM’s acquisition.


E Baskin, JV Olszyk, (2018). Mergers and Expansions in the Grocery Industry: An Amazon/Whole Foods Market Case Study.

PTF Grilo, (2019). Case study: the acquisition of Whole Foods Market, Inc. by Amazon. com, Inc.