Solved: Will Whole Foods be able to maintain its unique identity in spite of being bought by Amazon

In contrast to other key American grocery store chains Whole Foods is comparatively an adolescent organization and moderately an undersized one. But however it’s not a startup business it conveys strong earning margins and in its latest periodical income statement it recommended increase in dividend and fresh share repurchase as part of their business strategy to boost their value notion.

Startup business don’t function in this manner they don’t give dividends, purchase back shares and on a constant basis they don’t generate earnings. A startup organization’s objective is to generate earnings for its shareholders by turning out to be a much bigger and precious business.

Amazon is a much matured business and thus cannot be considered as a startup but however it functions like a startup. Periodical earnings are perpetually little compared to Amazon’s massive size on every now and then occasion it loses wealth and generally it avoids paying out any funds to its shareholders.

Amazon’s cash flow is all diverted into new stuffs and now they’re trying to make an effort to enter into the grocery delivery business and with the help of core online retail business functions they are ensuring to make available more and more items accessible to consumers by implementing efficient and effective delivery policies.

Each one has the same opinion that Whole Foods is a very good place to shop and thus eventually Whole Foods can help to convey value to Amazon without inevitably adding any profits.

In fact Whole Foods items are tin cans wrapped up or dried up which is very much suitable for Amazon’s very old and flourishing e-commerce business. Purchasing Whole Foods’ brands and dealer network could be a very helpful development and growth prospects for Amazon.

However Amazon has acknowledged the reality that online grocery business alone is not going to work for them in fact they have accepted the truth to be successful in grocery business they need to have both online and physical stores.

It’s not obvious if the purchase of Whole Foods by Amazon will be flourishing but the necessity for physical stores in combination with online in grocery business has evidently arrived and even Amazon perceives that it can’t set off without help any more.

It will be very remarkable to examine how the two gets integrated but it can be expected that there can be a business model development in combination with other product classifications being made accessible to consumers in numerous ways at the same time. However it is noticeable to observe that not everything that Amazon has done has been successful.