2020-11-21

Where is Bezos taking Amazon

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China Business Daily/China Business Network US e-commerce giant Amazon once again plays a new player breaking the old business rules Roles.

On November 17th, local time in the United States, Amazon launched Amazon Pharmacy, which focuses on online pharmaceutical retail business, and officially entered the highly competitive US retail pharmacy market. Affected by this, the share prices of related companies in the US drug chain giant plummeted.

According to Forbes statistics, Amazon founder Bezos is currently ranked with a total wealth of approximately US$190 billion World number one. This year, Amazon’s stock price has risen by about 80%. In the second quarter alone, Bezos’ personal wealth increased by $48 billion.

However, for this extremely wealthy man, he no longer devotes all his energy to the e-commerce empire of Amazon, but enthusiastically builds his Blue Origin (Blue Origin) project-to allow millions of people to work and live in space.

If Bezos’ pursuit of space stems from the mid-life crisis and the inexhaustible money, then he is underestimated. However, when Bezos controls the retail empire with one hand and the space program with the other, it is still unknown where the future of Amazon and Blue Origin will go.

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According to the Associated Press, Amazon has always been synonymous with subverting other industries, and Amazon pharmacy may subvert this industry. The picture shows the Amazon operations center in the southern suburbs of San Francisco. CNSPHOTO provides

Or will subvert an industry again

The Amazon pharmacy launched this time provides consumers with online drug purchase and offline delivery services. It also provides medical consultation for online drug purchase. This means that in addition to selling a series of generic drugs, Amazon pharmacies can also provide prescription drugs.

According to the current mode of operation, doctors can directly send patient prescriptions to Amazon pharmacies, and patients can also request pharmacy operators, such as CVS and Walgreens, to transfer their personal prescription drug records to Amazon pharmacies. Users who have questions about medication can contact the pharmacist through online self-service or telephone at any time. Amazon Pharmacy will also screen for possible drug interaction issues for customers who take multiple drugs at the same time.

Amazon claims that it will use some technical means to verify the authenticity of doctor’s prescriptions, which will reduce potential fraud.

In terms of price, Amazon’s paying members can enjoy up to 20%off generic drugs and up to 40%off brand-name drugs even without medical insurance. Paid members enjoy free delivery within two days, non-members can choose free delivery within five days, or pay $5.99 to upgrade to two days delivery. Paying members can also use prescription drug discount cards at approximately 50,000 offline pharmacies, including CVS, Walgreens, Wal-Mart, and Rite Aid, to provide greater convenience to users who are in urgent need of prescription drugs and cannot wait two days for delivery. It is reported that this business currently covers 45 states in the United States and can support most state medical insurance plans.

According to the Associated Press, Amazon has always been synonymous with subverting other industries, and Amazon pharmacy may subvert this industry. Affected by Amazon’s new business, the share prices of many retail pharmacies in the United States plummeted. Among them, the share prices of pharmacy operators CVS and Walgreens plummeted 8.62%and 9.63%, respectively.

However, some analysts believe that Amazon pharmacies will not necessarily have a disruptive impact on the industry. American consumers are more accustomed to going to pharmacies and talking with pharmacists face to face before buying medicine. At the same time, traditional retail pharmacies have a wide distribution of stores, and most of them are located around shopping centers and large supermarkets, which are more convenient for consumers, and Amazon pharmacies also have certain risks in their delivery services.

Charlie O’Shea, senior analyst of Moody’s Amazon retail business, said that once the delivery of drugs is delayed, such as the delivery of prescription drugs, it will be a big trouble. However, he added:”But I will never underestimate Amazon’s ability. They have enough funds and can bear the pressure of being unprofitable or less profitable.”

The analysis pointed out that Amazon will start from 2017. He seriously considered entering the online pharmacy market. In 2018, Amazon officially entered the medical field, when the company bought the online pharmacy PillPack for $753 million. The market has also been expecting Amazon to bring its digital advantages and good delivery capabilities into the US$4 trillion US healthcare sector, which is often criticized for inefficiency. Now, although Amazon does not have any physical pharmacies, it does not rule out that it will set up pharmacies in its Whole Foods and Amazon Fresh grocery stores in the future.

Dream Space Program

Entering the pharmacy industry is another consumer market worth hundreds of billions of dollars opened by Amazon. For consumers, if Amazon, with a market value of 1.6 trillion dollars, is a benchmark for pragmatism, then another space company founded by Bezos that has nothing to do with the benchmark, Blue Origin, is utopian. .

In 1982, 18-year-old Bezos said in his farewell speech after graduating from high school that he planned to”build space hotels, amusement parks, and colonies on Earth orbit for 2 to 3 million people. The goal It is to move some humans to space and turn the earth into a park.”

In order to realize this dream, Bezos founded Blue Origin in 2000. For 20 years, Blue Origin has been designing and building rockets to achieve the ultimate goal of allowing millions of people to work and live in space. So far, Blue Origin has built three suborbital spacecraft”New Shepard” (New Shepard) and completed more than a dozen flights. In the future, Blue Origin has more ambitious goals. The company’s latest spacecraft, the 45-ton New Glenn, will conduct a test flight in 2021. Bezos said that as people’s living standards continue to improve, energy demand will also increase, which is one of the reasons why he wants to achieve space goals.

Blue Origin was kept confidential for several years after its establishment in 2000, until 2003 when Bezos began to purchase land in Texas and build the company’s suborbital vehicle launch base and engine test base. , The public discovered this company.

This confidentiality principle continues to this day. In fact, Blue Origin has repeatedly refused to comment on related reports. Of course, Blue Origin has no reason to solicit public opinion. Because at least from the company’s establishment to 2016, Blue Origin’s annual operating expenses of billions of dollars are provided by Bezos through the sale of Amazon stock. Bezos said in 2017 that he intends to sell about $1 billion worth of Amazon stock each year to support Blue Origin.

At the beginning of November, Bezos sold about 1 million Amazon shares, valued at about 3 billion U.S. dollars at transaction prices, and received about 2.3 billion U.S. dollars. This is already Bezos’s third large-scale cash out this year. So far this year, Bezos has cashed out more than 10 billion U.S. dollars through public sale of Amazon stock, compared with only 2.8 billion U.S. dollars last year. According to a report by Bloomberg News, in the 15 years from Amazon’s public listing in 1997 to 2012, Bezos sold about 20%of Amazon’s stock and cashed out about $2 billion.

Bezos to the left or to the right

The Economist says that although the existence of Amazon and Blue Origin is revolutionary, But Bezos is obsessed with two unrelated things at the same time is really puzzling.

First, the transparency and speed of operations of the two companies are different. What Amazon promises is lower product prices, faster delivery, and more complete varieties, and it also promises to continuously improve the cloud computing capabilities of Amazon Web Services; while Blue Origin’s vision is to “enable millions of people to live in space in the future. And work for the benefit of the planet”.

Amazon went public in the third year of its establishment. At the beginning of its establishment, the motto was”rapid expansion.” Its persistent pursuit of innovation includes fear of failure; Blue Origin has been in The state of secrecy, and claims to be a”turtle” instead of a”rabbit”, its motto is”step by step, courageously forward.”

Secondly, they treat their competitors differently. Amazon, which dominates the field of e-commerce and cloud computing, prides itself on being a pioneer and disregarding its opponents. Bezos told employees to fear customers rather than competitors. The origin of blue lags behind people. It is trying to catch up with Elon Musk’s rocket company SpaceX, and the British listed company Virgin Galactic is also its opponent.

Veteran aerospace companies such as Lockheed Martin and Northrop Grumman are both its partners and competitors. At the same time, they are among its rivals. There is also Boeing.

But perhaps as Bezos said in 2015, Amazon and Cloud Computing Services (AWS) may look different, but they follow similar basic operating principles. The same may be true for Blue Origin and Amazon.

Both companies have amazing ambitions. Amazon provides customers with new items that can often broaden their knowledge of what they need, such as Kindle, cloud computing, and Echo smart speakers. On the blue origin side, Bezos hopes to set off a wave of entrepreneurship and drive others to follow it.”Space Road” and in the process usher in a new era of business.

The most important thing is that both companies are infused with Bezos’s commitment to long-term development. In Amazon’s letter to shareholders, he repeatedly reiterated that he wants to gain market leadership by investing in multiple industries, rather than prioritizing short-term profits. In his eyes, the origin of blue, if not looking at it for hundreds of years, is at least several decades.

What does Bezos’ space complex mean for Amazon’s future?

This is still a lingering question, and no one knows what will happen next. But one thing is certain, as Bezos said last year, Blue Origin is”my current most important job.”

Maybe one day, Blue Origin will not only put Bezos into orbit, it will also take him off the mothership of Amazon. (Compile Year Shuangdu)

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