Amazon Enters Healthcare

In her insight about Amazon and the opportunity it is pursuing in healthcare, Zhixin Shu has identified a number of the ways Amazon is working on disrupting large and profitable parts of the healthcare industry to which it can apply its competitive advantages of technology, execution, scale and not least capital to build potentially large and highly profitable businesses

Amazon Enters Healthcare

One of my favourite quotes from Amazon’s founder Jeff Bezos is ‘Your margin is my opportunity’. In the past decade, Amazon has ruthlessly targeted industry after industry by offering consumers a low-cost alternative, cutting the margin of existing companies and establishing itself as a formidable disrupter of the targeted industry. Today, there is no greater margin opportunity than the massively inefficient US healthcare industry. For months, the market has speculated that the next target for Amazon might be healthcare. On 28 June this year, Amazon announced it is acquiring an online pharmacy PillPack for a reported sum of $1bn marking its official entrance into the US pharmacy business.

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