Industries that Amazon intends to enter

Document Type:Research Paper

Subject Area:English

Document 1

It is the largest online retail platform in terms of income and market capitalization and second largest after Alibaba in terms of total sales. It began as a bookstore then expanded and began selling different items. Through hard work and determination, Jeff has been able to transform Amazon from a bookstore to a global electronic commerce organization successfully. Amazon is popular for its affordable prices and hospitality since the staff ensures that customers’ needs are met. What are the industries that Amazon intends to enter? Recently, Amazon announced their proposal to team up with JP Morgan and Berkshire to develop a healthcare organization that offers affordable health services to their American employees. Amazon has been selling over the counter drugs for a short period. The experience was motivating hence the development of their collaboration with the other organizations.

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People have developed their trust in Amazon, a factor that has helped them purchase drugs without worrying about the originality or quality of the drugs. Healthcare is a venture that requires courage, experience and enough capital since it deals with the lives of people. Collaborating with the world’s top organizations is a bold move since the three organizations have the ability to raise enough capital and have developed long term relationships with their clients. All these changes and advancements have contributed to an increase in mergers and acquisitions. Amazon needs to ensure that their procedures and services are thorough to receive a good or successful reception in within their target market. This will be facilitated by the use of adaptive strategies, which involve diversification, development of markets, and penetration strategies and vertical assimilation.

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Acquisition successfully helps organizations or projects thrive depending on the current trends. This means that while developing marketing strategies, Amazon should consider the fact that people are embracing online digital shopping and are more health conscious. This is a major advantage since it will recognize and embrace the nature of Amazons online retail feature (Powderly, 2015). The clients will develop their relationship knowing that Amazon will deliver their services and products through their online platform. The third and final advantage is that Amazon will have an increase in market power. In increase in market, power will allow Amazon to regulate the prices of their new products to meet their goals of providing affordable healthcare to their employees. Are there any recent examples where Amazon has done something similar? Research shows that Amazon has spent the last twenty years investing more companies.

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In November 2018, Amazon became an authorized dealer of Apple Inc. products. This is also a major achievement through acquisition. The authorization will be effective from January 2019. This will allow Apple resellers to sell their products through Amazon (Gartenberg, 2018). The organization has been investing in over one hundred companies over the past two decades. While writing letters to different investors, Jeff focuses on highlighting the main things that differentiate Amazon from other companies. This organization invests within a timeframe of five to seven years. During this time, the organization ensures that the companies they are working with experience growth, which is a competitive advantage. According to their 2017 stock, everything appears valued. Most clients and investor prefer working with organizations that are up to date with the current market trends. This illustrates that they focus on giving the clients what they want.

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References Aboutamazon. com (2017) “Annual report 2017. ” Seattle, Washington: Amazon. html Paavola A. “Here's what we know about Amazon's foray into healthcare” Becker’s IT and CIO Report. Retrieved from: https://www. beckershospitalreview. com/healthcare-information-technology/here-s-what-we-know-about-amazon-s-foray-into-healthcare.

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