Mergers and Acquisitions example
Whole Foods Market, Inc. (WFM) is a good example of the merger and acquisitions strategy. WFM has grown from two stores at its founding in 1980 to 335 stores today. Much of this growth, especially in the 1990s, was accomplished by mergers and acquisitions. One of the benefits of this strategy is the ability to garner a fully functional facility and established customer base. By purchasing an existing organic food store or chain, WFM did not have to incur the costs of educating potential customers in that area to the benefits of their products.
Some of the chains that Whole Foods has acquired include: Wellspring Grocery, Bread & Circus, Mrs. Gooch’s Natural Foods, Bread of Life Fresh Fields, Merchant of Vino, and Nature’s Heartland. Each store was eventually rebranded and WFM spread their unique corporate culture to the local store. A risk in the rebranding process is the loss of a locally identified name and perhaps some customer loyalty. The benefits of carrying all of their stores under one banner were very important to WFM and the company seeks to present a consistent image in all regions.
Some of the chains that Whole Foods has acquired include: Wellspring Grocery, Bread & Circus, Mrs. Gooch’s Natural Foods, Bread of Life Fresh Fields, Merchant of Vino, and Nature’s Heartland. Each store was eventually rebranded and WFM spread their unique corporate culture to the local store. A risk in the rebranding process is the loss of a locally identified name and perhaps some customer loyalty. The benefits of carrying all of their stores under one banner were very important to WFM and the company seeks to present a consistent image in all regions.