Amazon

Martyna Galińska
AMAZON Kinga Dziuda

Izabela Chomicz
Klaudia Kałużna
Amazon should focus on:
◦ the individual customer, especially in rural areas where access to
medicines is limited (due to fewer pharmacies, less public
transport and long travel distances)
The most important
◦ fulfilling same-day prescriptions on Pill-Packs mail order aspects for Amazon
pharmacy. This can be done by setting a retail pharmacy or
partnering with an independent pharmacy. in the
◦ negotiating prices with the drug manufacturers, pharmaceutical
◦ obtaining a production license for the transport of drugs from one
end to the other. This would eliminate middlemen in the supply supply chain
chain, and Amazon could directly serve the products from the
manufacturers.
Amazon's future in terms of taking over
part of the supply chain
It is possible for Amazon to take over part of the supply chain thanks to:
◦ Amazon's domination of Wall Street;

◦ the advantage of popularity and trust of consumers around the world;
◦ the experience and achieving goals in the pharmaceutical area;
◦ its knowledge and existing presence in over-the-counter medications;
◦ Its large capital and large negotiating base;
◦ actively working on legal and technical aspects related to their business objectives.
Compare/contrast the pros and cons of market penetration versus product
expansion for Amazon in the pharmacy market. Which is most in line with
Amazon’s goals?
Pros:
- Acquisition of a PillPack online pharmacy that individually sorts medications and delivers them to patients.
Most in line with Amazon's - Facilitated registration method (only medication list, doctor information, insurance information and payment
goals is method needed).
to become the largest company - PillPack forwards all prescriptions, coordinates with doctors and insurance to collect prescriptions and
providing drugs to packages medications by time of day and ships them to the customer.
private as well as business - 24-hour pharmacy support, automated refills and free delivery.
consumers while reducing the - The advent of online pharmacies creates opportunities for increased drug access, convenience, more
cost of acquiring them to competitive pricing and patient anonymity.
a minimum and becoming - Amazon's partnership with six organizations (including Express Scripts, Cigna Health, and Boston Children's
a monopoly company Hospital) to build the ability (Alexa apps) to "manage a variety of health needs at home simply by voice -
in this field. whether it's booking a doctor's appointment, accessing instructions after a hospital discharge, or checking the
delivery status of a prescription"
Cons:
- The biggest problem with relying on Alexa as a healthcare tool would be the increased availability of people's
healthcare information, access to which is protected by HIPAA. Maintaining one's own health information,
including physical and mental health conditions, as well as personal identifiers such as date of birth and social
security number, is a major concern for many people
As Amazon continues
◦ Best possible customer service:
into its healthcare
◦ Quick and easy ordering and delivery of
medications (e.g., drones)
venture, what strategies
◦ Using data to detect diseases
can the company employ
◦ Providing discounts
to ensure trust in its
◦ Transparent e-commerce
consumers/patients and
◦ Concentrate on subsidiarity
overcome the perception
◦ Share customer feedback on pharmacies
that tech companies
cannot be trusted with
◦ Amazon recently announced that data processing
protocols for Alexa are now HIPAA compliant personal data? What has
Amazon already done?
Amazon made a lot for medical care. Company had to
invest a lot of money, time and work to be in medical market.
Taking into account
They made new things in their offer like PillPack and have some
everything Amazon has
plans for the future. In my opinion there is some risk to venture done on the
into other sectors of healthcare but Amazon has more pharmaceutical side of
development opportunities than smaller bussines. the healthcare business, is
it strategic for Amazon to
◦ At first, the most important thing is that they have a lot of
venture into other sectors
money so possible faillure doesen't make them a heavy of healthcare, such as
finacial burden. hospital management,
◦
clinics, research, and
Second thing is that they have a lot of specialist and experts
development? Why or
who can prepare them for new challenges.
why not?
◦ Third, if a company wants to grow it must invest and try new
ventures.
Taking into account everything Amazon has done on the
pharmaceutical side of the healthcare business, is it strategic
for Amazon to venture into other sectors of healthcare, such as
hospital management, clinics, research, and development? Why or
why not?
In conclusion, if they want to make more money and grow
their business they need to take risks. Reliable preparation ca
n give them a smooth entry into the market,
but the risk of failure is always there. If they did not take those
risks, the company would not be where it is now.
So, in my opinion, they should try to expand their medical
business into other healthcare sectors because there is a chanc
e to become a market leader in that area as well.
Bibliography
◦ Saiki, S., (2020). Amazon Rx: Growing from books to pharmacy. In
SAGE Business Cases. 2020. 10.4135/9781529720259

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Martyna Galińska

AMAZON Kinga Dziuda

◦ Amazon's domination of Wall Street;

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