Amazon and CVS are about to go to battle with one another as the two are fighting to keep as much of the healthcare market as they possibly can. CVS has already been a long time player in the area obviously, and Amazon has made some noise about how they would like to jump into this arena in the near future as well. This could be something that ends up becoming a very big battle between two huge companies.
The fact of the matter is that Amazon has decided to apply for some licenses to sell pharmaceutical products on the Internet in a variety of states. By doing this, they sent up a sort of red flare that they are interested in competing in some of the same markets that CVS has had to itself for a very long time. It meant that Amazon was willing to do just about whatever it deemed necessary to expand its already massive business.
Drew Madden has been observing this from his perch as a healthcare IT entrepreneur and wonders how it will turn out. He certainly does see how Amazon has made a move that is definitely threatening to CVS. At the same time, he believes that CVS has put in an interesting counterpunch in the fact that they have decided to make their MinuteClinics much more bountiful and have also gone the extra mile by purchasing up healthcare insurance provider Aetna.
These moves make it possible that CVS can retain at least some of its marketshare in the healthcare industry even as the threat of Amazon looms all around them. Perhaps CVS has been among the brightest of healthcare companies when it comes to how they have reacted to the Amazon news. They just understand that they need to do what they can to protect the business that they have built up so strongly already. They did not panic but instead made the changes necessary to stay around. This is a lot better than just becoming flat-footed and not knowing what to do. Amazon may be a threat to them, but CVS has solidified its position in the healthcare industry.