Acquisition entails acquiring another company with the aim of expanding the company business either locally or internationally.[1] On the other hand, Greenfield includes building a new entity in a foreign nation. In other words, Greenfield entails creating a new business with the aim of targeting customers in a foreign country.

There is a broad range of benefits associated with both acquisition and Greenfield. The acquisition enables a company to expand its business operation while Greenfield assists a company to target new customers in the foreign country, therefore, expanding its customers.[2] Both Greenfield and acquisition can assist the parent company to expand its market share including increasing its profitability in a global market that is characterized by stiff competition.

The acquisition of PillPack can assist Amazon to expand its business operation as well as increasing its profitability and market share. Amazon may prefer using acquisition as opposed to Greenfield because of the costs associated with creating a new company in a foreign country. It is in most case less costly to acquire another company since the costs and expenses associated with building infrastructure, registrations, licenses, including other business assets are already in possession of the acquired company. Therefore, Amazon will not have to spend extra money looking for these requirements. Moreover, it may some time for a new company to start making good profits since it will face stiff competition from the local companies who have already established themselves. Starting a new company may also require extensive marketing to convince potential customers to try their services and products. In other words, the acquisition is costeffective compared to Greenfield and as such, Amazon may opt to acquire an existing company as opposed to opening a totally new firm in the international market. The following statements provide useful insight regarding why Amazon may opt to acquire Philip rather than using the Greenfield approach.