This week Amazon acquired Whole Foods for $13 billion. Whole foods is an established premium brand that promotes nutritious foods to its consumers. Whole Foods brand identity saved them from one of Amazon’s tactics which could have left them in the dark and cannibalized by Amazon. One tactic Amazon employs is to carry products from company’s on their site and then learn the inner workings of a business. Once there is enough business intelligence on the companies products, Amazon exploits these efforts by cutting out the middleman and going directly to the sources or suppliers. Therefore, becoming a competitor of the business that was their customers.
Whole Foods brand identity reduces the impact of Amazon’s tactic normally utilized as stated above. Even if Amazon would have went directly to Whole Foods sources they would not have had the capture effect on their customers. Whole Foods customers trust them to ensure that the products meet certain nutritious and quality standards, while Amazon is basically a distribution mechanism focused on profits.
While this weeks focus has been on the customers journey/experience and process improvement, I think that it is really important to analyze the impact of marketing your product on sites like Facebook or Amazon. We all know that these platforms provide more visibility of your products or services, but always take into account what you may loose by doing that. Defend against it, like Whole Foods did. Keep your brand strong and make it hard for others to emulate.
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