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American Well: The Doctor Will E-See You Now

American Well is an online telemedicine company that allows patients to visit with doctors virtually. They are debating whether to focus on growing their business-to-business model by partnering with health insurance companies, or pursuing a direct-to-consumer model. The document analyzes these two options as well as alternatives like expanding product offerings or international expansion, and recommends American Well first focus on growing in their existing business-to-business market before pursuing other opportunities.

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Aishwarya Solanki
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39 views

American Well: The Doctor Will E-See You Now

American Well is an online telemedicine company that allows patients to visit with doctors virtually. They are debating whether to focus on growing their business-to-business model by partnering with health insurance companies, or pursuing a direct-to-consumer model. The document analyzes these two options as well as alternatives like expanding product offerings or international expansion, and recommends American Well first focus on growing in their existing business-to-business market before pursuing other opportunities.

Uploaded by

Aishwarya Solanki
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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American Well: The Doctor

Will E-See You Now


Direct-to-Consumer Model
American Well: B2B or DTC?
DTC B2B

● American Well marked this idea as ● First mover Advantage


conceivable wherein they could cater ● Health Insurance companies as its
to the doctors and patients directly via primary target customers
an online nationwide system ● American Well Company can act as a
● More control over the user experience solution to their spending freeze
● High competition ● Insurance companies could act as
● Adoption by insurance companies aggregators providing an access to a
would be hampered larger pool of providers
● More lucrative customer segement
Industry Analysis - 5C
Company:
Founded by two brothers Ido & Roy Schoenberg in 2006
Implemented their first core product “Online Care” in Hawaii
Business model:brokerage model (which used web-based technologies and telephony to bring patients and
Physicians together in real time

Customer:
Patients, Doctors, Health Insurance Companies, Employers

Competitors:
● Online Care: Relay Health, MedFusion, TelaDoc, Cisco TelePresence
● Offline Care: Nurse Practitioners, Minute Clinic, Redi Clinic, Take Care Clinic
Collaborators:
● Insurance Service Companies - With a well established customer base, they can help American Well to increase its market
share.And American well can help reduce operating cost and increase productivity
Context:
● US healthcare is a volatile market and is expectings reforms in healthcare system
● The success of healthcare IT innovations depends on their compatibility with HIPAA
● Economic Recession in the US has decreased the purchasing power of its citizens
Company Analysis - SWOT
Strengths:
● First mover advantage. They are giving
● Adding value to all the stakeholders in the value chain
● The brand value of the founders is positive due to success of past projects. Hence easy to get investors
● Can leverage on the franchise model to target insurance companies which will provide them the opportunity to use
their existing database

Weakness:
● To convince users about the reliability of an IT system for health care service is a difficult, time consuming and costly
affair
● Users might be concerned about the privacy of information
Opportunities:
● US healthcare expenditure is expected to increase from $2.5 trillion in 2009 to $43 trillion in 2018
● Potential market in other countries like Australia, UK and Germany, since they have expressed interest already
● Collaborating with pharmacies is a lucrative option. They can link real time excess capacity with real time demand.
The pharmacies can offer first line of help in case of unavailability of PCPs. They can also suggest alternate drugs with
information of side effects for the patient
Threats:
● Competition would exist from those who would approach with a similar business model
Problem Identification
American Wells is in the middle of a dilemma. It needs to decide the way forward
for their company: they are unsure on whether to focus on current product, client
base and geography or diversify into new product, new geography and wider set
of clients.

At the same time, if they do nothing they could be losing out to competitors.
Alternatives
Option 1: Expand the market for the core product i.e Online Care Technology

Option 2: Develop a better product i.e Team Edition

Option 3: Expand to untapped segments - Hospital, Retail Clinics etc

Option 4: Go International to Australia, Germany and UK


Evaluation of Alternatives
Option 1: Expand the market for the core product i.e Online Care Technology

Pros Cons
● Caters to the present need to ● The platform has been marketed to a
customers with minimal level of few insurance companies and is still in
investment the incubation stage, therefore the
● formulated a win-win strategy for all potential is yet to be discovered
parties; doctors, patients, as well as ● There is no brand Awareness among
employers with the online platform the customers and they are yet to
capture the market share
Option 2: Develop a better product i.e Team Edition

Pros Cons

● Very convenient for patient as there is ● Practice of medicine without physical


reduction in cycle time examination
● Simultaneous access to PCP & ● Security issues of large pools of data
specialist of patients and doctors
● Improve the quality of care ● Recruiting doctors and health
● Significant savings to patients and insurance companies into the
health insurance companies system
● Resolving medical problems early ● Can lead to overutilization of
● Relieve medical licensing barriers healthcare services
between states
Option 3 : Expand to untapped segments - Hospital, Retail Clinics etc

Pros Cons

● Pharmacy segment can be targeted ● Increased expenditure on marketing


using existing resources and building kiosks at hospitals, retail
● Increased Market share clinics
● The segment would require new
business resources
Option 4: Go International TO Australia, Germany and UK

Pros Cons
● The customers present in Australia, ● Changes to American Well
Germany and UK have shown a huge organisational structure
interest in the service provided by ● Would have to tailor its services to
American Well each individual market
● Enormous Financing
● Too Early to divert to international
markets when they are not
established in the domestic market
itself
Recommendations

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