1.

Promising market opportunities

Following are the new market opportunities which are promising:

Insurance
It can cater to a large pool of customers & also offer cost effective
solutions toeveryone ranging from doctors, customers, insurance
companies, employers,etc.

Health consulting
Consulting from home would provide privacy & convenience to the
patients. American Well system can provide the doctors flexibility to
operate without theneed to maintain staff, infrastructure etc.

Delivery Network /health care Chains

This platform has the potential in linking real time excess capacity with
real timeexcess demand. They can provide better customer service,
boost revenues &also offer cost efficiencies in health care.

Online Consulting
This platform can also be used for offering different types of online
consulting likeReligious, legal advising, accounting services, etc.
●

Expansion
Potential customers in Australia, Germany & UK have expressed interest
in American Well online care solutions and it can explore these
territories bytailoring its services to the need of these marketsThe most
promising opportunity of all the above is of Insurance market due to
thefollowing reasons:a. Insurance companies can provide access to
a large pool of patients &doctors. Insurance companies also have
internal resources which theycan commit to encourage physicians &
patients to use online care.b. Health insurance companies were already
financially strong & representeda lucrative customer channel.c. One of
the main value propositions to health insurance companies issignificant
savings. This will be possible due to less costly medicalattention
because of the early treatment of medical conditions.d. Immediately
after President Obama assumed office, there was no clarityabout the
reforms in the Health care system that he had promised beforethe
elections. This resulted in the health insurance companies freezingtheir
spending.e. They can also open their doors to non members. They can
provide onlineconsultation to anybody willing to pay out of
pocket.f. Initially, insurance companies were viewed as being
primarily driven byprofit. Online care facility will provide an opportunity to
these companies toimprove their image & build goodwill with their
members. This can beanother reason why Health insurance can be a
promising market.

2.
Five 5 C’s Analysis

Analyzing Customers
Patients
–
They need timely availability of physicians, quality service ataffordable
price.
Doctors
–
They need a cost effective solution to manage their load of patients.
Insurance Companies
–
They have a requirement to provide consultation at aneffective cost.
Employers
–
They need a solution which prevents absenteeism & providesemployee
satisfaction.
Analyzing Context
Demographic Environment
–
Online service care will enable the doctors toprovide consultation
beyond geographical boundaries.
Economic Environment
–
Economic Recession in the US has decreased thepurchasing power of
its citizens.
Legal Environment
–
 Online care service is compatible to HIPAA whichaddresses privacy &
security risks stemming from increasing use of electronicchannels to
transmit patient information.
Technological Environment
–
This technology can be extended to provide services at homes &
workplaces. Instant messaging & video conferencing can be used to
facilitate the interaction between doctors & patients.
Analyzing Company
This platform has the potential in linking real
time excess capacity with real time excess demand.
Patients have the flexibility to choose
the specialists as per their requirements.
Analyzing Collaborators & Complementers
Insurance companies can help American Well to increase its market sh
are.
American well will reduce the cost of insurance, provide employmentsati
sfaction & also improve the productivity of the employees.
Analyzing Competitors

Offline health service providers are one of the biggest

competitors of AmericanWell.
Other competitors are Rely Health, Medfusion, Teladoc & Cisco Telepre
sence.
needed to support physicians and patients to use online care.
Also, thefinancial strength of insurance companies presents a
more lucrativecustomer channel than individual patients.3.)
Pricing

o
Online Care consultations costs very less than
traditional methods for bothconsumers and insurance
companies. This value proposition is a win-winscenario for all
four parties
–
 patients, physicians, insurance companies,and American Well
–
involved. Patients, members and non-members, payanywhere
from $45 - $75 per consultation.
Weaknesses
1.)
Lack of Brand Awareness

o
It is a new brand as compared to other companies which may
affect itsrevenues in the starting but they can capitalize on the
fact that theirowners have previously started
Opportunities
1.) Increasing demand for online communication between
physician and patients2.) State governments often limited the
access of their residents to physicians who werelicensed to
practice in their own state. However, PCPs were typically free
to consultregarding their patients with specialists from
anywhere in the U.S.
Threats
1.) Competition
–
Established competitors may also adopt a similar product to
that of American Well; If that would happen then it will no longer
enjoy the monopoly.
Value for stake holders
a. Patients
Patients would get the medical consultation at a cheaper price
They will also have an ample choice of doctors to choose
from anywhere in thecountry irrespective of geographic location
Unlike regular brick and mortar model, they can save a lot
of money and timeb. Insurance Companies
 Cost saving as the amount spent would be less as online
prices is fast andhelps in the early detection and treatment of
symptoms
Can provide their services to non-insured patients who
are willing to payout of pocket and can tap an entirely new
segment
Will help increase their goodwill as they were
normally considered as onlyprofit making entityc. Physicians
Can have significant savings on the infrastructure cost
Can get patients which are not from their stated. American Wel
l

Can get pool of patient records & doctors from insurance

companies
It can create a whole range of new possibilities in the hospital
sector,retail clinics, pharmacy chains
It can also expand in international market and go into various
othertypes of consulting once they have strengthened their
position inlocal/national market
Positioning

Marketing team should focus on various cost and time

savings of Team Edition.
American Well should use
Product Differentiation to position Team Edition as aninnovative
& all-around solution in the health care industry.
Porters 5 force analysis
Industry Competitors
–
The industry has a huge growth potential & low
industrialconcentration.Buyer Power - LOW (there are two
types of customers; the insurance companies andthe final
customer/patient)Potential Entrants - LOW for the short term
but HIGH long term (They had invested $70million for this
company. So in the long term another company can invest that
muchmoney or even more for a better technology) Availability
of Substitutes - HIGH (offline health service providers would be
a substitute)Supplier Power - LOW (there are already so many
competitors on the market supplierdon
’
t have much power. Power of suppliers is only high if it is a
niche market andsupplies are limited i.e. it
’
s the only supplier in a particular area that can supply
aparticular material)

3.What is the best course of action?

Available Options

1) Establish & Market Primary/Core Product -Online

Care technology2) Develop & Market Secondary Product-
Team Edition3) Expansion to New Segments-
Hospitals, Retail Clinics etc4) International Expansion-
Australia, Germany, UKOnline Care technology is the primary
product focused on providing a platform whichcan reduce the
cost of care delivery, create new revenue generating
opportunities forproviders and contribute to a more efficient,
convenient health delivery system. Thisplatform is at an
incubation stage
as it has been marketed to only a few healthinsurance
companies and the potential of this solution has not been
realized yet. American Well has yet to establish
market share and brand awareness
with respect

to already established competitors such as Relayhealth,

MedFusion,TelaDoc,CiscoTelePresence etc.Team Edition is a
secondary product which can extend the use of primary/core
solutionsplatform to provide
real time connectivity

between PCP’s and specialists. It would

further add value while reducing cost to insurance firms and
patients. It would
not incursubstantial cost
as it uses technology of online care solution. Team Edition can
be a
differentiator
for American Well when compared to competitors.Concept of
extending the core technology to a new business segment such
asHospitals, Retails Clinics is based on setting up of
online care kiosks
which mayrequire
substantial capital
for infrastructural development and marketing. This is
abusiness segment which would require
new business resources.
However thepharmacy segment can be targeted by using the
existing infrastructure.Expanding it internationally could be
costly as it requires tailoring/customizing thesolution to the
specific needs of the local markets and
reorganizing the companystructure
which may require
enormous financing
. It is also
premature
to divertresources when the core product is still not established
in US itself.
Best Course of Action

Considering the high value proposition for patients, physicians,

insurance companiesand health care market volatility

due to declared reforms the consolidation of businessmodel

based on core product should be stressed upon. As the
platform is alreadyadopted by some health insurance
companies and tested on small market it should bemarketed
and established as potential solution to health care
needs. Alongside Team Edition can be launched as a
differentiator product as it is an extensionof the already tested
platform and would not require any additional development
orresource. It can be a value added model for the health care
insurance companies as itprovides further time and cost
benefits to patients and insurance companiesThus the focus of
American Well should be on to market and establish online
caresolution as primary product with benefits and Team Edition
as a value added product.This would help American Well
remain ahead of its competitors without undermining itsinitial
online care rollout.

Evaluation criteria:
Following are the criteria used for the evaluation of the
options1.

Quality of service:
American Well company should not compromise on quality of
serviceirrespective of business diversification.2.

Secure the Patient information:

Patients seek to protect their information from others.
Thiscould be one of the key factors which can increase the
customer base for the American wellcompany.3.

Customer satisfaction:
Patient waiting time should be kept as minimum as
possibleirrespective of the number of patients at that particular
point of time.4.

Affordability:
Cost of fee should be within the limits as it is one of the key
factors decidingthe customer preference.
Longevity of business:
Any new changes brought into the business should contribute
for thelong-term feasibility of business.6.

Achieving the volume(revenue):

Increase in the revenue of the company with the help of allthe
changes brought in the business

Partnership with Hospitals

: Implementation will lead to increase in the scale of operations
ofAmerican Well with little conflict. Collaborating with well-established
institutions like hospitals
ensures the longevity
of the business, maintaining the best quality of service because of the
network that will be created between doctors and American Well
. It can lead to
more stableconsultancy hours
and
greater involvement from doctors

increasing revenue and customersatisfaction

.
Collaborate with Employers:
Collaborating with employers helps in creating a recurring
customerbase thereby increasing the revenue earned by the business.
This could be the next level ofdiversification after partnering with
Hospitals. This can be
implemented without much conflict
sincethe health benefits the companies provide are often in the form of
insurance plans
which can entailonline consultancy sessions as well
to
ensure that the insurance companies earn as well
.
Launch Team Edition:
This step reduces the complexity in the system by ensuring
propercommunication between patients, PCPs and specialists
. Since specialists are
often recommendedby PCPs themselves
, this system can be implemented
without causing any conflict
while ensuringthe
formation of a proper network of specialists
which can contribute to greater revenue andlongevity.
Trade-offs:
1.

With increase in the network and number of doctors or physicians of the

company, therecould be little chance of leaking the information of
patient.2.

There could be conflict of interest between insurance companies and

American Wellbecause of collaboration with hospitals as it would bring in
non-insured patients.