So today apparently Amazon bought out the company Whole Foods for about $37 billion or so where many people say the company did that to enable themselves to have a better position in the grocery department. It’s been an area that Amazon had been trying to get into without any kind of speedy success. It will be interesting to see where this takes them.
This made me think of various examples of companies that had virtually no real experience in a certain industry where when they entered it everyone thought they would fail. However, others would have the perspective that money can buy experience as well. One example that sticks out in my mind was Sony entering the video game industry way back and how its money enable them to help acquire the relationships they needed to move forward.
It kind of shows that sometimes it can be better to just use money to get the talent and presence that you need as opposed to spending so much time building it from ground up like many of us would love to do. That makes me very curious on how Amazon will grow with this acquisition. One odd thing though is that price wise I always viewed whole foods as very expensive whereas Amazon’s prices are very competitive in non-grocery categories. Will be interesting to see how this difference in a pricing model will fair.