Question

Please help me with this question.

Considering Amazon’s acquisition of Whole Foods, who is better positioned for growth in the United States grocery sector – Aldi or Amazon? Why? Use data.

Answer 1

I believe Amazon is better positioned for growth in the United States grocery sector.

In the event that Amazon decided not to manufacture its very own stores, with the goal for Amazon to be effective in staple goods the organization needed to gain a non-association basic food item retailer with flawless notoriety for selling brilliant leafy foods, meat and other crisp nourishment things. Organizations that are non-association like to abstain from purchasing organizations that are an association. Only a reality. Nonetheless, an association organization may make an obtaining of the non-association organization despite the fact that the specialists at the non-association organization may vote in favour of association portrayal.

Furthermore, since Amazon had never gained a basic food item retailer, I established that it would be to the greatest advantage of Amazon to think about two alternatives: obtain a territorial basic food item retailer working in only a couple of states, or procure a little to medium-sized retailer with stores found across the nation and with designs to keep growing broadly.

In the wake of evaluating all accessible basic food item retailers, I distinguished two that would best address the issues of Amazon:

• Best Regional Grocery Retailer: H-E-B. The organization works 340 stores in Texas and 55 in Mexico. (In the event that I needed to name the best basic food item retailer in the U.S., I would pick H-E-B.)
• Best Medium-Sized Nationwide Retailer: Whole Foods. At the time I chose Whole Foods, the organization worked 362 stores. The organization was little enough that Amazon could without much of a stretch scale the business.

I picked Whole Foods over H-E-B, not on the grounds that Whole Foods is a superior retailer. I picked Whole Foods since Amazon serves clients in each state in the U.S. Albeit hypothetically feasible for Amazon to get H-E-B and scale the organization, it would be significantly more hard to do as such than procuring Whole Foods, which previously had a nearness across the country. I additionally picked Whole Foods since it had well-earned notoriety for being a pioneer in crisp sustenance.

The blend of Amazon's ability in online retail and Whole Foods notoriety as the main staple retailer persuaded me that if Amazon procured Whole Foods, the organization would most likely make an environment comprising of online basic food item requesting and conveyance and stores found across the nation.