CVS never thought they had much to fear when it came to the competition in its segment of the economy. The only major competitors were Wal-Greens and Rite-Aid along with much smaller family pharmacies. It seemed that there was plenty of business to go around, and the profits for all these chains were doing just fine. That was until the news hit that Amazon may want to also enter into the market.
Amazon has already become famous for its ability to enter just about any particular part of the economy and shake it up to its core. Amazon is infamous for not caring much about its profit margin at all. They would rather jump in and establish a name for themselves in an industry before worrying about turning a profit. In fact, the entire company only recently began to make a profit at all.
Drew Madden has been keeping an eye on these developments. He is interested in them because he is an entrepreneur in the healthcare IT sector. He moved his way up from being a lowly employee all the way to having his own ventures in healthcare information technology. Thus, it should come as little surprise that the man constantly watches stories like this.
As Drew Madden sees it, CVS has made some savvy moves in order to insulate itself from the attacks of Amazon. They have made the purchase of healthcare insurance company Aetna. That allows them to control a lot of the process of a customer making an insurance claim all the way up until the moment when they use that insurance to purchase their prescription medications. Given all of this, it is a wonder that other companies in the space have not done some of the same things to keep themselves protected as well.
Considering all of this, Madden believes that the most likely outcome is that Amazon and CVS will continue to battle with one another, but he also believes that at the end of the day customers will enjoy the benefits that the two companies will generate from their competition with one another.