Question

Amazon, Berkshire, and JP Morgan merger - Healthcare strategic planning

Please discuss the internal and external enviroment of this merger

Provide citations

Answer 1

Amazon, Berkshire Hathaway and JPMorgan Chase would form an independent healthcare company for their employees in the United States.

Internal Environment for this merger.

1. Spiraling healthcare costs have raised costs and lowered efficiency of employees.
2. There is a complex web of doctors, hospitals, insurers and pharmaceutical companies that make negotiating a better healthcare almost impossible.
3. Amazon has strong artificial intelligence skills and technologies that could be used to provide for a digital healthcare environment.

External Environment

1. Too much red tape and bureaucracy and sway of middlemen in healthcare. These three companies have the technical and financial muscle to simplify the healthcare market.
2. Amazon specializes in shipping products to consumers and its entry into the pharmacy world could introduce price-lowering competition.
3. Berkshire Hathway and JP Morgan can club with Amazon's reach to the consumers could be used open a new insurance company for their one million employees.