Introduction
The trade-off we're considering for Amazon Pharmacy is whether to expand into more complex prescription types or focus on common medications. This decision will significantly impact our product strategy, user base, and operational complexity. I'll analyze this trade-off by examining key business factors, user needs, technical considerations, and potential outcomes.
Analysis Approach
I'd like to outline my approach to ensure we're aligned on the key areas I'll be covering in my analysis.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps prioritize focus areas for expansion Expected answer: Prescription sales are primary, with Prime subscriptions as secondary Impact on approach: Would influence whether to prioritize high-value prescriptions or volume
Why it matters: Ensures we're addressing the right user segments Expected answer: Mix of older users with chronic conditions and younger users with acute needs Impact on approach: Would guide decision on complexity vs. commonality of prescriptions
Why it matters: Determines the feasibility of expansion into complex prescriptions Expected answer: Basic infrastructure in place, but would require significant upgrades Impact on approach: Would influence timeline and resource allocation for expansion
Why it matters: Helps assess our ability to execute on different strategies Expected answer: Lean team with expertise in common prescriptions, limited specialized knowledge Impact on approach: Would impact decision on whether to expand or focus on core offerings
Why it matters: Helps prioritize short-term vs. long-term strategies Expected answer: Increasing competition from other online pharmacies, but no immediate threat Impact on approach: Would influence whether to pursue aggressive expansion or gradual improvement
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