Home Opinion/Analysis Amazon Ramps Up Global Domination Plans

Amazon Ramps Up Global Domination Plans

Cincinnati - Circa May 2017: Amazon Store in the U Square. Amazon@Cincinnati is Amazon's first Cincinnati brick-and-mortar store

Sometimes you look at companies like Amazon (NASDAQ: AMZN) and wonder just how it got to where it is today. What makes it such a big name worldwide? For a company that started out of somebody’s basement, it seems like too good a catch. Over the years, investors and other interested parties have seen the e-commerce magnate move strategically from one country into another, from one market to the next. You have seen the company take up space in the tech sector, the entertainment bracket, the cloud services market. And now, with a proposed $13.7 billion deal, Amazon might just be moving into the food zone as well.

Amazon CEO Jeff Bezos announced on Friday that Amazon could be expanding into the grocery store business sooner than expected with a potential acquisition of Whole Foods Market (NASDAQ: WFM). According to Bezos, the deal could be closed as soon as the end of this year, marking the entry of the global e-commerce giant into the food market. Bezos said that he was “happy” about the deal because it would help him keep Whole Foods alive and thriving in the food industry.

The purchase of Whole Foods will mark the second major venture that Amazon has made towards dominating the grocery market. A few months back, the online giant got its foot into the market’s door when it opened its Amazon Fresh Pick Up stores to the public. Unfortunately, the idea did not pick up as much as the company hoped it would. The pickup centers were centered on the idea of AI-operated stores. All you would have to do was walk into a store and pick up items that a computer would automatically pick up, and then you would pay at a machine stop. Amazon’s newest acquisition has raised concerns that this is what the company intends to do with Whole Foods. The CEOs of the two companies, however, affirmed that the operations of Whole Foods.

The newest addition to the Amazon Empire is expected to increase the company’s 2016 $136 billion sales revenue into never-before-seen sales. Whole Foods on its own was an organic food grocery store chain that was outperforming its peers. With the infusion of cash from Amazon, Whole Food’s growth potential is substantial. If the performance of Whole Food’s stock after the announcement is anything to go by, Amazon will be dominating the world food arena in no time. Whole Foods stock rose by 27% after the press release was issued, while Amazon’s gained 3% to trade at $989.27 apiece.

Whole Foods and Amazon are not the only ones feeling good about this deal. According to analyses by CNBC, an M&A between the two firms will not only lead to faster entry into the food industry but also lower inflation rates. More affordable food prices are good for everyone- well, unless you are one of the Amazon-Whole Foods competitors. Already stocks of firms like Kroger, Costo, and Walmart are falling because of the M&A announcement. What will happen when Amazon and Whole Foods actually start running stores together?






Previous articleFedEx Might Corner the Dividend Market Soon, But Not Too Soon
Next articleThe Kroger Case Keeps Getting Worst
 Jacob Maslow offers clients effective digital marketing insights that enhance website visibility and improve SEO as an online marketing consultant at Consultwebs. His approach marries creativity to numbers to show significant ROI for marketing efforts. This Brooklyn native has spent years helping skilled professionals, including medical and legal professionals rank for relevant search terms. Clients attain their marketing objectives with Maslow. He has helped boutique law practices in crowded markets rank No. 1 in Google ranking. His efforts doubled the revenue for Allergy Be Gone's non-Amazon sales to $4 million annually. SEO ranking and revenue growth are prioritized when Maslow consults with prospects and long-term clients. Maslow has over a decade of experience implementing SEO practices and running successful marketing campaigns. In addition to working with clients in various fields, but often with those in legal, financial and medical areas, he is an author, offering his expertise to those seeking to improve their engagement with online audiences. Read what Maslow has to share with eager audiences on business.com and business2community.com, including recent articles: "4 Mistakes You Can Correct Today to Be a Social Media Superstar" and "6 Things SEO Can't Do for Your Business." Maslow puts his connections to work for clients. He founded many news sites including: Forex Binary News; eThailand; Key Investing; Rapid News Network and StreetWise Journal. Jacob Maslow stays busy as owner of Legal Scoops, Daily Forex Report, Investing Alerts and bestportablechargerz. Feel free to seek his advice on Facebook, Quora and Slideshare or contact Jacob Maslow directly.