Analyzing Amazon’s Decision- Cost-Benefit Perspective and Implementation Strategy
The Cost-Benefit Analysis (CBA) is the procedure applied to estimate and sum up the benefits of an action with its total costs and its value towards a community. CBA helps organizations determine whether a project is worth the effort. The healthcare project by Amazon was started in response to the badly off healthcare system in the US (Enderle, 2018). A CBA had to be carried out to determine whether the project would be worthwhile.
CBA requires the use of measurements (An Introduction to Cost-Benefit Analysis, 2021). The measure of both the costs and the benefits must be determined. These measurements are made with equivalence to monetary values. According to Enderle (2018), healthcare costs are higher than those of low performance (benefits). To correct this imbalance, an organization or company such as Amazon can choose to play a part in healthcare. The move by Amazon to join the healthcare market was well received because people would now access affordable healthcare.
Amazon is capable of delivering at low costs and with high performance. It can achieve this because it covers a broad customer range (Enderle, 2018). Amazon also has the advantage of negotiating drug prices, developing better record management systems, and better diagnosis systems. The customer benefits are vast, such as the affordable healthcare that covers the cost and easy and ready access to their medical records and drugs and developing technologies. Since CBA represents customers’ valuation in relation to their reality, these benefits will attract more customers, providing Amazon with profits (An Introduction to Cost-Benefit Analysis, 2021).
Amazon benefits from the purchase of its products. The acquisitions, therefore, provide benefits to Amazon through profits. Another benefit is the ability to ensure human well-being through the availability of drugs, which save lives. CBA also involves the impression of life without the project. Consequently, without Amazon’s involvement in the healthcare market, people wouldn’t have access to affordable healthcare (An Introduction to Cost-Benefit Analysis, 2021). The project would take up to a year to implement, with weekly interval CBA.
In conclusion, Amazon’s decision to join the healthcare market will improve the healthcare system by lowering costs and improving performance.
References
Enderle, R., 2018. Amazon’s Soaring Healthcare Ambition: The Promise and the Problem | Tech Buzz | TechNewsWorld. [online] Technewsworld.com. Available at: <https://www.technewsworld.com/story/85106.html> [Accessed 11 March 2021].
Sjsu.edu. 2021. AN INTRODUCTION TO COST-BENEFIT ANALYSIS. [online] Available at: <https://www.sjsu.edu/faculty/watkins/cba.htm> [Accessed 11 March 2021].
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Question 
Please read the following article – https://www.technewsworld.com/story/85106.html
After reading the article, please provide your thoughts on Amazon’s decision based on a cost-benefit perspective. Additionally,
Analyzing Amazon’s Decision- Cost-Benefit Perspective and Implementation Strategy
please provide your thoughts on how long it will take to implement and how you would manage this project promptly (i.e., do you think outsourcing is an idea we can explore).