Amazon.com, Inc.: Driving Disruptive Change in the US Grocery Market
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Case Code: BSTR536 Case Length: 14 Pages Period: 2007-2017 Pub Date: 2018 Teaching Note: Available |
Price: Rs.400 Organization: Amazon.com, Inc Industry: Grocery Market Countries: US Themes: Business Strategy, Corporate Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
On June 16, 2017, Seattle-based e-commerce giant Amazon.com, Inc. (Amazon) acquired Whole Foods Market, Inc (Whole Foods), one of the leading natural and organic foods supermarket chains in the US, in an all-cash transaction valued at approximately US$13.7 billion. According to analysts, the deal touted to be Amazon’s biggest acquisition till date, marked a turning point in the company’s strategic efforts to crack the US$800 billion US grocery market. The deal also marked Amazon’s big entry into the brick-and-mortar retail space. The shares of big box retailers such as Wal-Mart Stores, Inc (Walmart), Target Corporation (Target), Costco Wholesale Corporation (Costco), and The Kroger Co (Kroger) tanked with investors worrying about the far-reaching implications of the deal. “By purchasing Whole Foods, Amazon is set to disrupt the $800-billion grocery market in the same way it upended the publishing and consumer electronics industries. Now Amazon is right where it wants to be: everywhere. It has surpassed its original goal of being the “everything store” and is fast on its way to becoming the “everything everywhere” store,” said Sean Kervin (Kervin) practice director, customer experience, at Clear Peak, a management & analytics consulting firm... ” ...
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