THE AMAZILLA EFFECT

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There are very few cases of a brand that by its disruptive nature pushes brands in completely separate categories to shape up lest the disrupter takes a fancy to a category it isn’t even in. Yet.

Such is Amazilla.

At the news that the Big A had received pharmacy licenses in 12 states and was applying for more, CVS announced they were instituting next day delivery with plans for same day. In addition, CVS is in talks to acquire Aetna to bulk up.

Walgreens was already testing same day delivery from a mobile app, but was using a third party to deliver and charging around $5 per delivery.

Industry analysts believe Amazilla will first focus of medical supplies, but in time will push into discount mail order pharma. It already sells other merchandise that drug store chains sell.

There will be more and wider repercussions to smaller pharmacies as Amazilla continues its drive into the drug store category. Does this sound a little like the disruption in the bookseller market?

Other than their vaunted expertise in logistics, Amazilla has three other YUGE competitive advantages.

– They have a customer base that they understand.

– They built a well-understood brand online without the larger investment in brick-and-mortar.

-They don’t mind mixing it up by lowering prices.

Can anybody stand in Amazilla’s way?

It might just be WalMart with a very loyal customer base, a superb distribution system and the long-term ability to build a business based on low prices.

PS. How about a nice Amazilla chez lounge? Another category that The ‘Zilla is eyeing.