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1. What is the corporate strategy behind Amazon’s acquisition of Whole Foods?

1. What is the corporate strategy behind Amazon’s acquisition of Whole Foods?

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Whole Foods has become an acquisition target due to decreasing sales and revenues and increased competition in cutthroat super markets amazon's market value of around $480 billion is 3.5 times last year's revenues. It is buying Whole Foods for less than one times its last year's revenues (0.85%). Given that Whole Foods is actually more profitable than Amazon, which plows most of its potential profits into new business development and expansion, and since Amazon does not have to dilute its stock, this seems like a great deal for Amazon

Acquiring a grocery retailer is strategic to the future of groceries and food at Amazon. However, physical grocery retailing is hard. Without a laser focus on transforming Whole Foods and accelerating investments in the business, Whole Foods and groceries could turn out to be Amazon's bridge too far

The acquisition of a grocery distributor is strategic for Amazon's food and grocery future. Physical grocery retailing, however, is difficult. Without a laser focus on transforming Whole Foods and accelerating company investment, Whole Foods and grocery could be the bridge too far for Amazon

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