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The Grocery Industry: Welcome to a New Competitive Landscape
Amazon's purchase of Whole Foods in 2017 was a strategic action that is dramatically changing the competitive landscape in the grocery industry. Market leader Kroger, among others, has responded with a series of strategic and tactical responses. Many of these involve the use of technology to enhance the e-commerce experience for consumers, and the firm is also making adjustments to its supply chain. Amazon's purchase of Whole Foods is a good example to provide you with the understanding that the nature of competitive dynamics is a continuous flow of actions and responses. When Amazon demonstrates its strengths in e-commerce to bear on the sale and delivery of groceries, its competitors such as Kroger, Walmart and Safeway had no choice but to start offering a better e-commerce experience for shoppers.
Discuss what actions you might have taken in response to Amazon's move if you were a top-level manager of a grocery store chain (one of Amazon's competitors). As a manager, what new strategic or tactical actions might you take in the future.
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