In the current business world, companies have embraced highly responsive strategies in a quest to keep abreast with the ever-changing nature of industry demands. One of these companies has been Amazon, which has continued to expand its operations via mergers and acquisitions, as well as promotional initiatives that seek to increase its customer base. In this study, the main aim has been to conduct a strategic analysis of the recent merger, Amazon Whole Foods, as well as the retail industry to which it belongs. From the findings, technological advancement has improved user experience and increased the number of players in the industry. In addition, political and economic factors tend to overlap in relation to areas such as inflation, export and import laws, and corporate taxation. Social factors shaping the retail industry’s operations in the world include rates of population growth, age distribution, demographics, and income distribution. From the micro external environment analysis, the threats of rivalry and potential entrants are strong while supplier power and buyer power remain moderate. On the other hand, the threat of substitutes in this sector remains weak. Some of the major resources and competencies include technology infrastructures such as online storage and computing systems, customer bases, patents such as the new presence of One Click Payment System, and warehouses. Specific competencies include competencies include brand popularity, large market share, flexibility of business expansion, strong brand equity and loyalty, and the presence of online marketing promotions and channels. Whereas these trends depict the promising nature of the merger, the recent data breach led to the leaking of credentials of third party sellers. In turn, the hackers defrauded unsuspecting customers into purchasing stock that was non-existent. The implication is that, to survive future uncertainty, Amazon Whole Foods needs to embrace a desirable degree of responsiveness and adjust based on prevailing industry needs and business environment demands.