On January 16, 2019, global technology giant Microsoft announced a seven-year strategic partnership with Walgreens, the second largest retail chain drug store in the United States. Microsoft integrates its cloud services Azure, AI and other technologies with Walgreen's customer resources and industry expertise to enhance the online and offline drug sales experience and accelerate innovation and development in the digital retail arena. This is the first step in Microsoft's layout of a big health industry this year. Compared with Google and Apple, Microsoft's ambition to take root in the medical industry is obviously greater.
The US healthcare service model is undergoing rapid changes. Walgreens and Microsoft hope that this cooperation will become a wave of change.
As the second largest chain pharmacy in the United States, Walgreens was founded in 1901. As of August 31, 2018, it has 9,560 offline retail pharmacies in the United States. It is affected by medical e-commerce and medical reform policies. The services provided by offline pharmacies are limited. Only flu vaccines are available at home, and emergency care is provided in some areas. It is difficult to meet higher service standards. The integration of technologies such as Microsoft cloud services and telemedicine will provide Walgreens with a new channel, while reducing the cost of manpower and management costs to obtain new profit growth points.
The rapid development of 5G technology will also benefit the medical field. Through remote diagnostic sensing devices, video teleconferencing, AR / VR and other technologies, medical personnel no longer need to go to the site for treatment, and remote rural areas can also enjoy professional medical services.
At present, the medical service field has become increasingly mature. As a pioneer in the field of cloud computing, Microsoft has always practiced breakthroughs in innovation with technology. The end of the medical service is payment, Microsoft may not be able to break through the entire closed-loop innovation in the short term, but Walgreen's huge offline retail network and trading system provide experience for the two companies to jointly launch independent healthcare stores in the future.
According to the US Emergency Care Association, as of June 2017, emergency care services were implemented in approximately 7,600 locations in the United States, with revenues of $18 billion and compound annual growth rates of 5%-6%. Obviously, the big market is still a blue ocean for Microsoft and the Walgreens who are eager to make breakthroughs in the medical field.
Microsoft's competitors, Google, which is also eyeing the medical industry, have not made any major moves. This cooperation may be the first step for Microsoft to preempt, and its advantages in the medical field are expected to expand.
For Walgreens, the situation is less optimistic. In 2018, due to the acquisition of a number of pharmaceutical companies by its largest competitor, Amazon's stock prices both fell sharply. The invasion of outsiders caused a storm in the traditional pharmaceutical retail industry. The cooperation with Microsoft will be Become a lifeline for Walgreens.
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