As they have disrupted commerce with Amazon.com and the IT HW, SW, and solution industry with AWS, they are now expanding this innovative disruption in the area of healthcare and pharmacy industry.
To compete with Amazon, CVS Health with 9,700 stores nationwide announced that the company will M&A the medical insurance company with the size of USD69Billion. This deal is bigger than the deal between Bayer and Monsanto M&A with the size of USD66Billion. According to the analysis of Bloomberg, the M&A could be made due to Amazon. For the Amazon’s next step is to expand to healthcare, medicine retail, and insurance. Then how come this deal is being made?
If you look at the retail industry, Amazon is absolute industry disrupter. Macy’s closed 65 stores this year and fired 10,000 staffs this year. The Limited stopped selling its business on offline. ToysRus declared its bankruptcy.
Amazon obtained pharmacy license in 12 states including Alabama, Arizona this October. If you are the citizen living in those states, after visiting doctor you don’t need to visit pharmacy. You can just access your application or the website and touch or click to get those medicines. The total market size is around USD560Billion. The main reason why CVS health merged the insurance company is to approach the customer data with 22Miilion identified information. The company believe that this can target the right customer to secure market.
However Amazon have been doing the targeted approach with its internal data analysis competency. Moreover with the acquisition of Wholefood, the company can sell the medicine right away. Other medicine makers are looking for the opportunity to collaborate with Amazon.
While I was in Gartner, I had many chance to listen the commerce players were considering OMNI channel strategy. Well, they are considering a lot of options, but most of the powerful players are the ones started its basis from online. Moreover Amazon is adopting robot and drone to innovate its process. They have adopted 75,000 Amazon robots in their warehouse. It is being expected that this adoption will decrease 1% of total number of job market in US. Amazon already announced to the public that 50,000 Amazon Robots will be replaced with humans every year. Now we are being Amazoned.
Original post: http://www.techrux.net/amazon-is-now-expanding-to-everywhere/