Online Shopping Case Study - 1407 Words

Who would have ever imagined that buying groceries online would be an option to the general public? The internet has taken over nearly every aspect of the business world, and the grocery business is the most recent item added to the list. The grocery business is enormous, but they were uncertain about what their future may hold due to the increase in online retail. They knew that their next move would have to be to take their business online if they wanted to continue to flourish. Amazon saw this as a perfect target to grow their industry, as well. This is one of the many reasons why Amazon decided to buy out Whole Foods. Unfortunately, this decision will have negative effects on their competitors. COME BACK TO THIS TO FINISH The Deal (DO†¦show more content†¦According to Harrison (2014), â€Å"Whole Foods Market has grown into a natural and organic food empire, with nearly 400 locations, more than 80,000 employees, and annual sales exceeding $12 billion,†, and it has continued to expand to 460 locations since then. Amazon is looking to amplify their business through Whole Food’s numerous locations all over the world. Whole Foods has acquired the nickname â€Å"Whole Paycheck† due to the high prices of their groceries (Wingfield Merced, 2017, para. 8), and because of this aspect, they struggled to compete with stores such as Walmart and Kroger who have reasonable pricing. They often have better and healthier products, but consumers are drawn to lower prices. Struggling to attract customer has led to Whole Foods losing â€Å"a fifth of its value in the last three years† (Gensler, 2017, para. 5). With that being said, Amazon saw this as the perfect opportunity to save W hole Foods’s business, as well as help their own. On June 16th, Amazon announced that they were going to buy Whole Foods in a $13.7 billion deal. In this deal, â€Å"Amazon would pay $42 per share in cash for the company, which represents a 27% premium to the closing price† (Gensler, 2017, para. 2). Back in the day, many people thought of online stores and physical stores as two things that would never overlap. Amazon and Whole Foods saw the potential in combining the two. In this arrangement, consumers can order their goods online andShow MoreRelatedOnline Shopping Case Study1471 Words   |  6 Pageswith ease. This was great for consumers and online retailers, but for brick-and-mortar businesses like Best Buy, this posed a significant challenge. Brick-and-mortar retailers were tasked with the challenge to adapt and overcome the competition posed by the online retail market, or risk being left in the past. Analysis: The global online retail market has experienced rapid growth in the past decade. In the sector of electronics and appliances, the online share of the total retail market has increasedRead MoreAn Investigation Of Online Shopping1621 Words   |  7 PagesIntroduction: An investigation of online shopping and how does it influence NTIC students’ daily life. Observations have shown that there has been a rapid development in an economic world. We have witnessed a tremendous change about shopping online. According to UCLA Center for Communication Policy (2001), online shopping has been regarded as the third most prevalent activity on the Internet, only followed by e-mail and website usage. It plays an important role, not only in retail stores, but alsoRead MoreThe Advantages and Risks of Online Shopping Essay1041 Words   |  5 Pagesinternet, online commerce become quite common and plays an important role in the modern world. 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