Whole Foods And Trader Joes Merger Case Study

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Tammy Williams BUS 499 Merger, Acquisition, and International Strategies Professor Smith August 26, 2012 For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion. The Coca-Cola Company is a beverage company. The Company owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It owns and markets a range of nonalcoholic…show more content…
Today’s consumers are more health conscious than consumers of the past. We are more apt to purchase specialty foods over the traditional foods our parents purchased. Consumers across the nation have access to everything from exotic products to unique delivery service. Specialty grocery stores have grown in popularity, but the problem is that often specialty stores have limited locations whereas specialty services have limited reach. Whole Foods and Trader Joes’ are two retailers who have expanded to hundreds of locations while adhering to an unexpected market positioning for previously untargeted market segment. Trader Joes operates over 340 stores in 9 states; Whole Foods has over 200 stores in various states and also has stores in Canada and the United Kingdom. Trader Joes has 14 stores for every 12 Whole Food Store. Whole Foods is decentralized and Trader Joes is…show more content…
I recommend a multidomestic international corporate level strategy for Trader Joes because they will be merging with Whole Foods, and it is currently operating under this strategy. A multidomestic strategy can customize each market, decentralize control and location decision making, and is effective when large differences exist between countries. The advantages are: product differentiation, local responsiveness, minimized political risk, minimized exchange rate risk (Statistic Management,

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