The Seattle based e-commerce giant, Amazon has entered into an alliance with Berkshire Hathaway and JP Morgan Chase late in the January and then it has expanded its presence into the Medicaid market to take on retail rival Walmart. But, exactly how they all fit together into this space is to be seen.
Amazon to Drive Down Prices in the Healthcare Industry
L.E.K. Consulting has asserted that whatever the healthcare segment has seen so long is far from the disruption that Amazon could bring.
Rob Haslehurst, L.E.K Managing Director, has written in a new report that anyone who considers the Seattle based Amazon as just a very big digital retailer needs to think once again. He further adds that they have constantly made expansion of their business model and now they have become a world leader in cloud computing, a bricks-and-mortar food purveyor apart from their e-commerce offerings, and also a provider of in-home services. Amazon has continuously demonstrated that they come with the patience, the capabilities, and the deep pockets so as to disrupt industry after industry and the industry of healthcare comes with no exception.
Report co-author and L.E.K. Managing Director, Joseph Johnson, makes a note of the fact that Amazon has a roadmap that it can follow in order to move deeply into the industry of healthcare industry. He also made a suggestion that Amazon could also drive down margins and prices whilst transforming behavior of the customers.
L.E.K. Consulting has outlined five lucrative points of entry that Amazon could take into as they enter into the healthcare space: