BOSTON, March 26, 2018 /PRNewswire/ -- Amazon is getting into healthcare — and healthcare may never be the same.
In a new report, the firm describes five healthcare-industry scenarios that show how Amazon is likely to enter and dominate the field.
"Anyone who thinks of Amazon as just a very big digital retailer needs to think again," says Rob Haslehurst, Managing Director at L.E.K. and report co-author. "They have continually expanded their business model and today they are a leader in cloud computing, a provider of in-home services and a bricks-and-mortar food purveyor in addition to their ecommerce offerings. They have repeatedly shown that they have the capabilities, the patience, and the deep pockets to disrupt industry after industry. Healthcare is no exception."
Amazon in late January announced its entry into the healthcare field through an ambitious alliance with JP Morgan Chase and Berkshire Hathaway.
Amazon has the right core competencies to succeed at healthcare
Amazon already has many of the core competencies needed to compete in healthcare: ready access to capital, a massive distribution infrastructure, a strong technology base, a robust data analytics capability, and a deep, talented executive bench that, "like Bezos himself, is relentless, resourceful, fast, inventive and customer-obsessed," says Haslehurst.
Amazon is already making healthcare inroads
Amazon's healthcare ambitions aren't just aspirational. The company is already making inroads. In Japan, Amazon will begin offering Prime Now drug deliveries directly to consumers with pharmacist approval. In the U.S., the company has been recruiting for multiple healthcare-related positions.
Five scenarios show how Amazon could enter and dominate healthcare
What will Amazon's assault on the healthcare marketplace look like? "There are five scenarios," says L.E.K. Managing Director and report co-author Joseph Johnson. "They're not mutually exclusive — in fact, they represent a roadmap that Amazon can follow to move continually deeper into the healthcare industry. All of them illustrate Amazon's ability to drive down prices and margins while fundamentally transforming customer behavior."
Amazon's possible points of entry are:
"There are three reasons to believe that Amazon is serious about healthcare," says Johnson. "One, they are one of the largest private employers in the U.S. and would reap huge financial benefits from lowering healthcare costs. Second, the U.S. healthcare system is notoriously inefficient, and Amazon CEO Jeff Bezos loves to attack inefficiencies. And third, healthcare is the kind of big, complex opportunity that Bezos likes to sink his teeth into."
For more information, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications at +1 (212) 255-8386 or Katarina@sommerfield.com.
About L.E.K. ConsultingL.E.K. Consulting is a global management consulting firm that uses deep industry expertise and rigorous analysis to help business leaders achieve practical results with real impact. We are uncompromising in our approach to helping clients consistently make better decisions, deliver improved business performance, and create greater shareholder returns. The firm advises and supports global companies that are leaders in their industries — including the largest private and public-sector organizations, private equity firms and emerging entrepreneurial businesses. Founded in 1983, L.E.K. employs more than 1,200 professionals across the Americas, Asia-Pacific and Europe. For more information, go to www.lek.com.
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SOURCE L.E.K. Consulting
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