Drew Madden is the kind of person you want to hear from when it comes to the healthcare industry. As a long time professional in healthcare information technology, he knows a thing or two about how different developments in the world of healthcare usually play out. Fortunately for all of us, he is not afraid to share his insights as well. Today, we are looking at how CVS and Amazon are taking different approaches to taking over as much market share in the healthcare sector as they possibly can.
This company probably only felt the need to get super defensive as of late. They have always had heavy competition from the likes of Walgreens and Rite-Aid, but lately they had been winning those battles. Then Amazon had to come in and ruin things for them. Now, they have reset and want to be there for customers from the moment they purchase their healthcare insurance until the moment they fill their prescription.
CVS made a gigantic business move when they purchased healthcare insurance company Aetna. It was a massive deal that had to be approved by regulators, and it was. Now CVS can more fully control the entire lifecycle so to speak of a customer from when they first get their insurance to when they purchase their prescription after a visit to the doctor.
This is a different character altogether. They are just starting to perhaps dip a foot into the healthcare arena. Amazon has dominated nearly every business that it has ever gone into, but this would still be a new venture for them if they decide to go for it. Lately, Amazon has applied for licenses to sell pharmaceuticals over the Internet. If they choose to do so, they could almost instantly become a major player in those markets.
They have the opportunity to disrupt an entire industry, but the players who have been there since the very beginning are not going to go down without a fight. They are preparing themselves for this already, and Amazon may have shown some of its hand here prematurely.
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