The effectiveness of internet in current time is much recognizable. Accordingly, the e-business strategy is one of the most effective and essential for the companies in conducting the business over the internet sites (Bauer et al. 2014). The study will shed lights on the case scenario of American Well, which is the renowned technological equipment provider for the health and social care centers. The company aims to focus on the enhancements of quality assessment and making the technological equipment available to the health care management clients (Americanwell.com 2017). The company is concentrating on using the web services to eliminate the barriers in accessing the technological equipment. Therefore, the study will demonstrate the market analytical tools of American Well by presenting the PESTLE Analysis, Porter’s Five Forces, and Core Competencies. The relevant strategic recommendations will be provided by keeping focus on the outcome of this analytical study.
PESTLE Analysis provides the external market analysis of the operating location of the firm. This section of the study will discuss the political, economical, social, technological, legal, and environmental factors that have the significant impact on the company.
The advancements of technologies have made the health care centre as the fastest growing sector. It has been notified that the United States has the politically stable environment and the regulations are effective enough for establishing the business entity (Steinhubl, Muse, and Topol 2015). The democratic policies in the country are transparent and focus on the quality parameter of the service. Hence, the health care centers have to be much concerned about providing the high quality services to the service users. Therefore, American Well needs to pay attention towards availing the opportunity of providing best quality health care services.
The economic value the US health care is predicted to be almost $2.5 trillion. It has been noted that the expected economic value for the year of 2018 is almost $4.3 trillion (Chandra and Skinner 2012). The stability in the economic structure is ensuring the higher opportunity for the American Well to sustain the competitive position in the market. The company can even sell the technological equipment to the health care centers at reasonable prices.
The low rate of fertility and the aging population are the major social problem in the US health care industry. American Well is thus paying the clear concentration on the fertility services since the consumers prefer such services. Customers opt for the better quality of the service without worrying about the prices (Steinhubl, Muse, and Topol 2015). Hence, the opportunity of establishing the business here is quite beneficial.
The advancements in the technicalities and innovative processes have made the health care sector more popular (Weaver et al. 2016). It has been noted that American Well is focusing on innovative process of managing the services and taking extra care of the online transaction process. The innovativeness in the communication process is also becoming much remarkable due to the efficient technological process.
It is reported that the advertisement laws imposed by American Medical Association have brought changes in the health care sectors (Moses et al. 2015). The increasing number of regulations and legal aspects are providing enormous opportunities to the company for sustaining the position.
The environmental factor in US is supporting the growing nature of the health care centers (Weaver et al. 2016). The demands of the high quality health care services among the community people in increasing the necessity of health care equipments.
Porter’s Five Forces Analysis
Bargaining Power of the Suppliers (Low)
The association of the American Medical Council has presented the restriction on the recruiting practices of the doctors. Therefore, the council has decided to cut down the operational costs from the health care activities and the prices became lower eventually (Perou and Blumberg 2014). Therefore, the power of the suppliers is consequently lower than before.
Bargaining power of the buyers (High)
The availability of the hospitals and health care centers has made the bargaining power of the buyers much higher. The service users receive varieties of choices to avail the health care facilities due to which they can switch to any other health care centre as per their convenience (Moses et al. 2013).
Threats of Substitutes (low)
People look for the medical centers during an emergency (Weaver et al. 2016). The substitutes of the medical treatment are not a mere concern for the company. However, the threats from the innovative approaches are still needed to be taken into account.
Competitive Rivalry (high)
Advancements of the technological innovations have been influencing the competition among the rivals. The stable economic structure of the country is introducing much innovativeness to the companies due to which the rivalry grows higher (Chandra and Skinner 2012).
Barriers to Entry (High)
US health care centre are receiving numerous opportunities and becoming the fastest growing sectors. The supports from the government and the technological equipments are establishing the strengthened position of the local health care (Perou and Blumberg 2014). The high competition in the market is thus signifying the lower possibility of entrance. Hence, the barriers to entry are quite high.
The major competency of American Well is to secure the technological stands by introducing the highly advanced medical equipments to the health care centers. The availability of the ‘online care’ process via official website is one of the most significant and remarkable strategic decision undertaken by the company (Americanwell.com 2017). The company has been using the different type online technologies and telecommunication tools to make the patients updated about their service users regarding the health care services. Through this websites, the service users can pay their bills and receive any medical reports by using the internet services. This competency level is quite commendable for achieving the competitive advantage in the health care sector in US (Chandra and Skinner 2012).
The result derived from the market analysis signifies that American Well needs to pay the attention towards the e-business strategy formulations. It is notable that a vast amount of people have been using internet for their daily uses. The availability of the proper medical services and information through internet sites would be helpful for the company to secure the competitive position. Hence, it is essential to pay the fruitful focus on the e-business strategies. The use of the e-mail marketing, the establishment of the communicational process, and securing the e-commerce business would ensure much profitability for the company in future prospects.
The study explores the market analysis of the operational location of American Well. The e-business strategy defines the both short term and long goals with a sequential and efficient planning process. The information derived from the external market analysis, it can be recommended to the company that the establishment of the e-business strategies would be much helpful for securing the competitive position.
Americanwell.com. 2017. Telehealth Is A Benefit Employers Love - American Well. [online] American Well. Available at: https://www.americanwell.com/telehealth-solution-health-plans/ [Accessed 24 Mar. 2017].
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