Amazon Wants To Take Over The World

Amazon’s recent venture in the takeover market was to buy a company called Whole Foods. Yet this seemingly mundane purchase of a grocery chain in the United States could change the industry.

Dominating the world of e-commerce

Amazon is, of course, an e-commerce giant that sells almost everything through its price competitive and lightening fast supply chain.

Whole Foods is a small chain of grocery stores based in the United States known for bringing natural and organic foods to shoppers in a way that prompts tremendous loyalty.

Amazon is a world-recognised brand that has grown over the last two decades to dominate its domain through low costs and quick delivery.

Whole Foods is an organic brand in the grocery sector and part of the value of the purchase is its access to the habits of millions of upmarket shoppers.

Amazon threatened to get into the retail food sector before, as it is keen to test its hard-earned data management skills beyond what it already knows.

And given that the size and scale of the grocery business is too big and too lucrative for the company to ignore it entered the fray.

With the Whole Foods takeover Amazon is likely to build a major role in food retail just as it has done in other areas.

The grocery sector is no stranger to takeovers but this time it is different, as Amazon brings a new skills-set and the ability to create chaos for other businesses.

Amazon is one of the best companies in the world at collecting, analysing and acting on the data it gathers from customers.

And the purchase of Whole Foods brings 440 retail outlets located in prime neighbourhoods, which provides access to some very attractive information.

A disruptive force

The significance of the takeover is reflected in the fact that the stocks of a number of food companies fell upon hearing the news.

While the Whole Foods business may already feel pressure from its competitors their commitment to selling wholesome foods is something Amazon covets.

Amazon’s entry to the grocery market acknowledges the importance of the sector and its purchase of Whole Foods acknowledges the importance of its brand.

But Amazon’s next move is likely to transform the grocery business as the purchase so many outlets creates the opportunity to use them as contact points for its vast range goods.

Remembering what Amazon did to the book industry provides an indication of how it will disrupt not only the grocery market but also its gigantic supply chain.

Such disruption to such a large industry is likely to capture enormous savings and change the entire shopping experience for buyers and suppliers alike.

Amazon’s data skills combined with Whole Food’s reputation will change an industry that is used to close competition but not deliberate disruption.

So, Amazon’s purchase of a grocery chain may not be headline news today but it will have a profound effect on every aspect of the industry for shoppers and sellers.