Amazon's acquisition of Whole Foods takes effect today, and that means plenty of food for thought on whether Amazon is getting too big.
What started as a website to buy books and other items now has a music service, produces its own films and television shows, and offers streaming services. Earlier this month, reports surfaced that Amazon is now looking to enter the event ticketing business.
"Imagine getting your pay-TV service, groceries, banking, insurance, etc. all through one company. That's the threat that Amazon poses," Michael Greeson, director of research at business analysis firm The Diffusion Group told USA Today in June.
"I think it's good to have this kind of out-of-the box thinking," responds Mark Jamison at the American Enterprise Institute. "One of the things that sets the U.S. information technology sector apart from their counterparts in other parts of the world is their willingness to say, ‘No one has ever tried this before; we're going to try it. This business model is working; we're going to destroy it and try to build something better.' That willingness to do things that no one else is trying really sets us apart."
Jamison is glad to see Amazon try something like this acquisition of Whole Foods.
"Amazon is trying to see what it can do to make the food business better," he explains. "If you can do that and make customers happier, what's wrong with that?"
Jamison adds that companies grow because they are successful, and they are successful because they make customers happy.