https://www.usnews.com/news/us/articles/2020-11-17/amazon-opens-online-pharmacy-shaking-up-another-industry
We all know the simplicity and convenience that is Amazon. No matter what you need, you know you can find it on amazon and it will be on your doorstep before you can say United States Postal Service. Amazon has often been called a monopoly although it is not. Amazon may seem as though it dominates the market, it only holds a significant amount of power in the e-commerce world. However, with the impact of COVID-19 and the general convenience of online shopping, brick and mortar stores, and companies are going out of business. We all saw the tragic closing of Toys R Us which many millennials and older Gen Z hold near and dear to our hearts, but stores of all kinds are closing quietly.
Amazon started as an online book store but has grown to an e-commerce mega-site. Although not entirely due to Amazon, brick, and mortar stores of all kinds are struggling to keep up with e-commerce. However, who would have thought that Amazon would ever carry prescription medication. Amazon will now carry insulin, inhalers, and other common medications. This is a whole new world of competition for large and small pharmacies. Amazon can choose to offer these medications using various forms of discounts such as offering percentage discounts to prime members, lower prices for people without insurance, and cheaper shipping than other online pharmacies. COVID-19 has put many pharmacies, big and small, under a lot of stress, and adding a strong, new competitor is the last thing they need.
Is there potential that Amazon will run small and large corporations out of business? Although it is unlikely they will completely dominate the pharmaceutical market, there is a chance they could become a leader. As Amazon begins to enter more markets, how will it impact the economy? Stock in Amazon skyrocketed during COVID-19. Do you think consumption will increase, decrease, or stay the same as Amazon begins to dominate beyond e-commerce?
Yes there is a great chance Amazon will run other companies out of business. They have so much capital they can theoretically do whatever they want.
ReplyDeleteI doubt Amazon can outgrow large pharmaceutical companies. However, like they have already done, Amazon can continue to run smaller businesses out of the market. I do also think it can make it harder for those who rely on these smaller drugstores that close down to get their medications. Some people cannot access Amazon as easily as most of us can. I think Amazon's consomption will continue to rise and rise until the government intervenes.
ReplyDeleteI think in the beginning, there may be some questions on if the medicine that Amazon offers is the same quality as what is offered by pharmaceutical companies. If Amazon passes this initial question phase, as Libby suggested, they will likely run smaller businesses out of the market. Furthermore, I could see that if Amazon works to dominate beyond e-commerce that the government might start to intervene to prevent monopoly power. It will definitely be interesting to see how the situation plays out with Amazon in the future, as they enter into the pharmaceutical industry and potentially other industries in the future.
ReplyDeleteI think that Amazon will soon have the resources to provide consumers with the same products as any other store could. Amazon continues to find ways to ship packages in such a timely manner that they couldn't easily survive shipping perishables at a low cost.
ReplyDeletethis step into pharmacy by amazon will be a game changer and this was almost destined to happen when their was word of vaccine being produced. I think amazon like in many ways find their own place in this market slowly growing and eventually rivaling the competition
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