Amazons Strengths And Weaknesses

The weaknesses demonstrated by Amazon to acquire Whole Foods for 13.7 Billion are disadvantages where Amazon can improve. Firstly, Amazon has made a considerable financial investment to acquire Whole Foods and will limit their ability to purchase more assets in the future. Second, the acquisition will hurt the corporation’s ability for quality and quantity control. Lastly, since Whole Foods is solely an Organic Food store, there are limited suppliers in the industry and can become a problem if proper precautions are not taken. Overall, with purchasing Whole Foods, the organization will experience a hit financially, quality and quantity control for satisfying their consumers and the limited suppliers of Organic products in the grocery industry.

Amazon would struggle with quantity control from purchasing Whole foods because Amazon will be holding too much stock given by the company which may produce sales or losses towards the capital. They will also experience losses from defective products within Whole Foods that will affect the company. Aside from losses in quantity, this would result in finding a supplier that satisfies quality standards which will cause prevention of expanding their operations for long-term growth. Also, since Whole foods priced their products relatively high, Amazon must adjust to these changes by adding more price value towards the product which will be less attractive towards customers who prefer paying cheaper alternatives. Furthermore, Amazon may face a lot of supplies being damaged when being shipped out to consumers as each product is very fragile. With a significant amount of supplies being delivered, Amazon “needs to add a large network of specialized grocery distribution” (Dastin 2017) to provide their consumers with the wide range of products costing Amazon’s expenses to increase dramatically. Therefore, Amazon quantity and quality control is a big factor when they are trying merge into the market where they are guaranteed losses from the products