Marketing Management– DSM 201

American Well: The Doctor Will E-See You Now

① Introduction → ② Relevant Data Points → ③ Frameworks available in readings →

• The case is about American Well Company • US health-care expenditure-$2.5trillion in 2009 • Market analysis tools mentioned to monitor
which is into Healthcare Business • 20% of US Population > 65 in next 20 years and understand macro and micro
integrated with Information Technology • Existing competitors- In Online Care → Relay environmental factors that can affect a firm’s
• Established by Ido and Roy (Brothers) Health, Medfusion, TelaDoc, Cisco TelePresence profit and market value.
• They have B2B business model – Health In Offline Care – NP, MinuteClinic, Rediclinic, ➢ 5C’s analysis- Customers, Context,
insurance companies as the primary Take care clinic Company, Collaborators, Competitors
customers. • Problems with Existing Competitors→ ➢ Porter’s 5 Forces – Competitors,
• With new developments in existing ➢ Constrained by Supply and Demand Potential Entrants, Substitutes
business, the Management wants to (Geographically, Temporally, Time availability) Availability, Buyer Power, Supplier Power
expand the service internationally, launch ➢ Operates in Point to Point mode ( Patient and ➢ SWOT Analysis – Strength, Weakness,
new product- “Team Edition” doc. at specific place , specific time) Opportunity and Threats
• They have few challenges like – • American well main value propositions→ • Market Scanning →
➢ Diverting the existing resources ➢ Significant savings for health companies ➢ What can be learned from the past?
➢ Additional hiring (reimburse cost-$25 only for 10mins ➢ How can the present be better assessed?
➢ Tapping the opportunity first in the consultation) ➢ How the firm can be ready for the
market ➢ Rise in number of customers future?
➢ Changes in Organizational Structure ➢ Health insurers can open their doors for non-
➢ Right time to rollout the new product members So the above analysis should be done by the
➢ Stability in the existing market ➢ Provide many to many service - No marketers before planning any marketing
appointment, no specific time/place. strategy or executing any marketing tactics.
➢ Low Cost to Customers
Prepared by - Shubham Saxena , MSDSM Batch-I
Marketing Management– DSM 201
American Well: The Doctor Will E-See You Now

④ Frameworks useful for this case → ⑤ Recommendation→

To analyse Company and its Competitors, availability of substitutes → Considering the existing market situation,
use Porter’s 5 Forces method i.e. Competitors, Potential Entrants, American Well company should focus only on the main platform
Substitutes Availability, Buyer Power, Supplier Power and services rather than diverting resources to a new platform
I. Industry Competitors → Though American well has many “Team Edition”.
competitors operating in the Online Health care market but it is
operating in B2B rather than in D2C as most the competitors are First it should focus on the existing product and build the strong
operating →a differentiated product→ Moderate Competition but customer base and trust. It should focus on collaborating with more
they not in a completely different race. Insurance companies as they have more customer data. They should
II. Potential Entrants →Low chances of potential entrants into this try to change the customer behaviour in terms of visiting the offline
industry due to high initial investment. It would be difficult to care or other means.
change customer preferences. Once they have a strong hold on the Health Care market in terms of
III. Availability of substitutes→ There are substitutes available in the Trust, Brand Name, Position, Customer base, then the company can
market but with less Quality of care. So, as of now there is not easily think of next generation innovative products.
perfect substitute available in the market. But in future there is After that they can easily transfer the customers to any innovative
threat! product.
IV. Buyer Power→ It is low as its buyers are Insurance companies and
employees . It provides convenience and saves time, cost. So, as of now American well should AVOID introducing the next
V. Supplier Power→ It is also low. There are many competitors in the generation product and should not try tapping the other
market. People tend to take advice from the known ones or can opportunities in the market as Health care market is a Marketing
approach Offline care solutions or read articles on the Internet for Intensive Business and requires a lot of Investment and allocation of
minor health issues. resources and time
Prepared by - Shubham Saxena , MSDSM Batch-I