Entrepreneur Voices on Growth Hacking by The Staff of Entrepreneur Media Inc

Author:The Staff of Entrepreneur Media, Inc.
Language: eng
Format: epub
ISBN: 9781613083871
Publisher: Entrepreneur Press
Published: 2018-04-01T16:00:00+00:00

CHAPTER

19

TWO LESSONS FROM THE AMAZON-WHOLE FOODS MERGER

Per Bylund

Whether or not you’re bullish about Amazon’s acquisition of Whole Foods Market, you and I can agree that the $13.7 billion price tag was colossal. It wasn’t Amazon’s first step into the food arena, but it was certainly one of the company’s biggest moves to date. And the staggering purchase price wasn’t the only fascinating aspect of the deal.

Amazon will acquire the upscale grocery chain of more than 460 stores across the United States, Canada, and the U.K. In fiscal year 2016, Whole Foods reported about $16 billion in sales.

Unlike most businesses—and particularly large corporations—Amazon refuses to adhere to an industry-specific paradigm. In looking to acquire new components in various markets, Amazon is defying common expectations that many companies treat as hard and fast rules.

It’s easy to compare two grocery stores or chains and examine that competition within the confines of their industry. In reality, though, all sellers and producers go head-to-head to secure consumer spending. The intense competition that results takes place across market lines and is no longer industry-specific—if it ever was.

And Amazon and Whole Foods? That blockbuster deal demonstrates the true essence of innovation and competition as it pertains to entrepreneurship.

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