Read the Case Study:

Saiki, S. (2020, January 15). Amazon Rx: Growing from books to pharmacy (Links to an external site.). (https://csuglobal.instructure.com/courses/55745/assignments/1105428#:~:text=Books%20to%20Pharmacy-,Read%20the%20Case%20Study%3A,Global%20Library%20is%20a%20good%20place%20to%20find%20these%20resources.,-Business%20Management%20Administration Sage 

Publications.

Amazon is one of the worlds largest companies with operations that encompass video and audio streaming, ecommerce including computer and electronics sales, grocery retailing, shipping and logistics, cloud computing, and financial services. Amazon purchased PillPack in 2018 for $1 billion USD in an attempt to enter the pharmaceutical market. This purchase is a complement to its Basic Care business as well as its secret 1492 laboratory that is pursuing research related to medical records and related medical information technologies.

This case study contains a description of the PillPack acquisition and its relevance to the company in terms of both a potential increase in revenue and expansion of business lines. This acquisition is forcing competitors such as Walgreens and CVS to reassess their strategies to deal with increased competitive pressures. After reading through the case, please respond to each of the following items:

  1. How would you describe Amazons life cycle development stage?
  2. Describe Amazons corporate acquisition strategy in terms of one of the directional strategies described in the class text on pp. 195-200. Does the PillPack acquisition make sense in terms of this strategy? Why or why not?
  3. Given Amazons interest in the medical field, how far into the vertical pharmaceutical market should its acquisitions extend? Should Amazon attempt to own the entire pharmaceutical supply chain, or should it stick to retail operations? Explain your answer.
  4. As Amazon builds its healthcare businesses, what strategies should the company develop to meet the data security and HIPAA privacy requirements for patient data? Are these concerns likely to limit the growth of its healthcare businesses? Why or why not?
  5. From a strategic perspective, should Amazon continue to expand its healthcare businesses by taking on hospital management, clinics, and medical research and development? Why or why not?

Your well-written paper should meet the following requirements:

  • Be 4 to 6 pages in length not including the required title and references pages.
  • Include section headers, introduction, and a conclusion.
  • Be formatted according to APA style. The CSU Global Writing Center offers resources on how to format your assignment (Links to an external site.) and cite sources (Links to an external site.) in APA style.
  • Include at least three scholarly or peer-reviewed articles in addition to the case study and class text. The CSU Global Library is a good place to find these resources.

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