Amazon continues to hit the ball out of the park. Last week, they reported strong earnings. They also announced that they are acquiring One Medical which will help them move further into the medical and healthcare industry. This is a strong and rapidly growing industry. If we pull the camera back, recent moves by Amazon show how they are going further and faster into health tech which should continue to help fuel their growth going forward.
Amazon is one of the most successful companies in the United States, and in fact, the world. While they have taken some wrong steps and have had a few failures, as every successful company does, in general, their rapid growth over the last few decades have shown their successful expansion into many different sectors like AWS, cloud, Whole Foods and more.
Healthcare is one of the many areas Amazon is now focused on, and they are all-in with this acquisition and others. It is obvious they want to be a force in the rapidly growing healthcare space.
Amazon moves further, faster into health tech with AI and IoT
Their acquisition of PillPack a few years ago, Iora Health last year and One Medical now, shows how the company is going deeper into the healthcare space.
Not long ago they expanded their virtual health care service called Amazon Care from a benefit for their employees to other companies as well.
Andy Jassy, new Amazon CEO, is continuing on this path, rapidly moving into the fast-growing healthcare sector.
Step-by-step, they are gearing up to be a powerful player in the national digital healthcare marketplace.
Amazon wants to be a leader in health care, not just a player
Over time, they are using their technology to change many different industries.
This is the same strategy they have used to build their business in recent decades in a variety of directions. If you recall, when Amazon started in the early 1990’s, they were only an online book selling service. They have exploded with growth ever since.
Healthcare is one of the biggest and steadiest growth drivers we have ever seen and that is why I believe it is on Amazon’s radar.
More, they want to be a leader in this space, not just a player.
One Medical will help Amazon Care brand expand further in healthcare
So, who is One Medical and how will it help Amazon build their healthcare business?
They are an organization which uses technology to offer primary medical care to members. They work directly with thousands of companies.
In fact, if we pull the camera back, we can see how Amazon is creating a symbiotic relationship between different acquisitions in the healthcare space combining doctor’s offices, virtual visits and the pharmacy under the Amazon Care brand.
It took quite a long time for Amazon to build their infrastructure and become profitable. Therefore, this kind of long-term build is not uncommon for them.
Amazon does not focus on the current quarter. Rather, they focus on the long-term future. And this approach is why they have become so successful and expanded so far.
If they remain on this path, who knows how large the company will grow.
Amazon has developed strong, lasting customer relationships
The Amazon secret-sauce to success is it has spent decades building a strong and lasting relationship with their large and growing customer base. They will use this trust to expand their relationship with the customer and employers.
Over time, Amazon has built a company which is one, big growth organization. It’s a fertile farmland waiting for the next crop to be planted.
They have been moving forward and expanding their footprint into many other growth industries using the technology they have built.
And these separate industry opportunities do not have to be related. After all, what is the connection between a bookselling business, an online retail juggernaut, an enormous cloud business with AWS and the healthcare sector?
Amazon sees long-term growth opportunity in digital healthcare
The Amazon secret is they have developed a loyal customer base, which they can spread among various offerings in various industries.
They see an enormous growth opportunity by creating a new and virtual online world where they can leverage their long-term and trusted relationship with the customer.
Watching them over time, I get the sense that this is just the beginning of the incredible, long-term growth opportunity the company has in its sights.
Jeff Bezos started Amazon in the 1990’s, and throughout their history, this is a company always focuses on investing and growth. Profitability and earnings today always seem to take a back seat to growth and expansion.
While this has often frustrated investors over time, their long-term focus has let them build a successful powerhouse and that growth should continue going forward.
Amazon opportunity to grow and change healthcare marketplace
Remember, Amazon Prime already has 44 percent of American customers. Even more who are not Prime members. In comparison, the largest healthcare competitor has roughly 1 percent.
That means Amazon has incredible growth opportunity to offer a variety of health care services to their sizable and growing customer base.
This is the integrated system Amazon has built over time for just this reason. A system that can continue to grow going forward in many different industries, for as far as they eye can see.
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