Week 6
lhutchins
6DIscussion.docxIn your responses to your peers, identify whether you support their investment recommendation or not, and explain why. Do you foresee any risks that may prevent your peers' chosen companies from realizing the anticipated benefits of the investment?
Student 1:
A future investment that I can identify and recommend for The New York Times is to start a retail line. This could be done through creating t-shirts, hoodies and other retail items directly targeted towards their demographic and audience. Think graphic tees that have political stances on them, or simply New York Times as a logo. These could be humorous as well to draw attention. The reasons I recommend this investment is because of their large audience. Most of what the New York Times is known for is their political reporting. Adding a retail line seems like a good fit to widen their audience and increase their budget. The potential investment affects budgeting and related business decisions because it would involve significant spending this coming year, hopefully followed by benefits in the following year. This would affect short-term and long-term spending priorities by making the company adjust their marketing needs as well as budget. It would create an entirely different industry within their company. The benefit would outweigh the cost if done properly and advertised correctly. The goal is to gain more traffic and customers.
Response:
Student 2:
The future investment opportunity for Amazon.com, Inc. is the online health care and pharmacy markets. The digital era is an ever-growing technological advancement. The online pharmacy set-up throws a plethora of opportunities for Amazon to grow. Since Amazon has already gained the market leadership position in the e-commerce industry, the online pharmacy set-up paves way for the company to become the market leader in the healthcare segment.
The basic features of the investment are that the company has acquired a license to ship the prescriptions of drugs and medicines to about 49 states across the United States. The online pharmacy store has a great market segment to be captured by Amazon. Another basic feature of this investment is to cut the number of steps to zero for a consumer to buy products from Amazon Inc.
The reasons that I recommend the online pharmacy store as a great investment opportunity is because the customer segment who prefer the online pharmacy store is huge and they are considered as untapped resources by any other companies. This has great return on investments for their long-term investments.
The potential investment affects budgeting and related business decisions for Amazon. Amazon has significantly invested in the online pharmacy store. Amazon has already paid about $1 billion in cash for PillPack, out beating Walmart Inc. (WMT) in the process. The return on investment is expected in the coming years. This spending has great impact on short-term and long-term spending however the benefit outweighs the cost due to the good returns on investment.
Logistics.amazon.com. (2019). Amazon Logistics. [online] Available at: https://logistics.amazon.com/ [Accessed 18 Sep. 2019].
Response:
