Question

Amazon, Apple, Facebook, Google, Ebay and a few more Silicon valley giants have decided to run a united insurance scheme, whereby all of their employees are going to be covered by the same insurance plans. They are also considering starting, or acquiring, their own health care system, which would serve their employees and their families and anyone else who may, in the future, decide to purchase insurance from this new insurance scheme. Even though the companies have signed an agreement that they will all participate, the details of how to do all this are still being ironed out. Amazon CEO Jeff Bezos has asked you for a quick concept note, or brief outline, of how you would approach rolling out this new insurance scheme. Amazon is considering acquiring a pharmacy chain or online pharmacy manager, such as Walgreens, and running the pharmacy business on their own using their highly developed online sales platform. Bezos is interested in getting strategic guidance from your company on whether this is feasible and that would be the risks.

Summarize your revised thinking about these problems in no more than 250 words.

• How would you value this deal on its own? Are there any potential synergies? What are the potential pitfalls?
• If Amazon acquires a pharmacy, would that affect the dynamics of their agreement with Silicon Valley companies? Is this something they should consider in deciding whether to pursue this acquisition?

Answer 1

A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.

Here I am going to describe the Amazon considering acquiring a pharmacy chain and running the pharmacy business on their own using their highly developed online sales platform along with how would I value this deal on its own and there are any potential synergies for any potential pitfalls and what is Amazon acquires of pharmacy would that affect the dynamics of their agreement with silicon valley companies and if Amazon should consider something in deciding whether to pursue this acquisition.

it is definitely true to say that Amazon along with Apple, Facebook, Google, and eBay are planning to unite the insurance scheme and it is also true to say that that Amazon is thinking to acquire a pharmacy chain on its own using its highly developed online sales platform. Amazon acquiring a pharmacy chain would be the very nice decision for the success of the Amazon as to when it comes to the online pharmacies there are very few companies that deal with online pharmacies and Amazon acquiring an agency of its own would bring a lot of success to it and it is definitely feasible for the Amazon to acquire a pharmacy online. strategic and guidance that would be required for Amazon this time would be grabbing onto the opportunity before anyone else grabs it. This is a very good decision to take, in the marketing strategy this is called the first-mover advantage.

Yes, there are absolutely potential synergies as the Amazon is currently working with JP Morgan. Both of them are likely to create potential energy with each other and that would bring a lot of profit to both of them rather than working individually would bring. There are not currently any potential pitfalls regarding this.

if Amazon acquires pharmacy that would affect the dynamics of their agreement with silicon valley companies because they have decided to start a United insurance scheme whereas when the Amazon will acquire of pharmacy that would definitely affect the decision in some sort of way. Yes, there is definitely something that Amazon should consider in deciding whether to pursue this acquisition is that it is a very good opportunity and they should grab it before anyone else grab it.