MIS 712: EBUSINESS STRATEGIES ASSIGNMENT - 1 STRATEGIC ANALYSIS Name: Dhairya Suri Student Id: 215455935 Unit Chair.: Dr. Craig Parker The total word count of this report excluding cover-page, Table of content and references is 1050 words. Table of Contents 1. Introduction 3 2. PESTLE Analysis 3-6 3. FIVE FORCES Analysis 6-7 4. Core Competencies 7 5. Strategies 7 6. Conclusion 8 7. References 8-9 Introduction American Well founded in 2006 by Ido Schoenberg and Roy Schoenberg was established with main motive to serve the patients online in order to save time and be more efficient in attending the patients through internet and telephone in real time. Prior to this there were only two choices available with patients seeking medical care which were first, to show at an emergency room and second was to get an appointment from their physician which actually meant weeks of waiting time for patient.(Jelassi, Enders and -Lopez, 2017) Being the first of its kind to use internet and telephony method to serve its patient the company enjoyed huge benefits and was under the news for quite long time. Now company was working on implementing their new project called "Team Edition". The idea was to create a connection between the PCP's and specialist so that patient should end up waiting for a follow-up from its from its PCP's (Frue and Bush, 2017). 1. PESTLE Analysis The PESTLE analysis takes into consideration some of the external factors which are beyond organisation control some of these factors are political, economic, social, technological, legal or legislation of a country and its environment suitability for the business. The PESTLE analysis helps the organization steps it need to follow which are streamlined with goals and strategies of an organization. In the our case that is American Well, we have tried to find answers to following questions that follows in the PESTEL ANALYSIS. • Political and Legal Factor : United States of America is a country that spend trillion$ dollars on insurance (Apple, 2017). Most people in country are offered insurance by their employer so the insured employee could get higher benefits as the insurance amount given by the employer for coverage is highly tax-deductible firm but on other hand it exempts the employee from paying tax for the same. Also Affordable Health Care Act commonly known as A.H.C.A or 'Obamacare' as well was originally given proposed in year 2009 but was signed into the law on 23march 2010 by Barack Obama (Amadeo, 2017). Another major benefit was given to seniors citizens and pregnant women who are not required to pay the copayment (part of payment paid by customer) for the doctor visit as it was made free under Obamacare. Moreover Taxation benefits were received by small business i.e. having 25 or less employees were given 50 percent credit under Obamacare. (Amadeo, 2017) • Economic Factor: Cost involved in insurance is the another important factor that affect selection of insurance. Each year every USA citizen spent a fortune on getting himself and its family insured and eventually ends up paying huge premium cost if choice is not viable. Moreover it is also believed that healthier personnel or worker tends to contribute more into economy by its work compared to person taking leaves due to illness (Malloy and Merkowitz, 2015). Administrative cost Defensive medicines cost of which is non-negotiable, These are the text recommended to patient which are not necessary to carry out but customer is not aware of these medical terms and thus endup paying huge amount of money for these test recommended by specialists. Branding for instance: insurance of StateFarmGroup insurance or ALL insurance requires to pay more premium cost because of its brand recognition in market (Epstein, 2015). • Environment and Social Factors: People surrounding us is what constitutes our society. Social and environment factors are nothing but combination of one's diet, habit such as smoking or drinking alcohol , sanitation habits, Education having awareness of what is right and wrong for one's health is utmost important. Another important context in terms of once health in cleanliness of environment (Social Determinants of Health, 2013). For Instance: Less usage of smoking and banning vehicles causing pollution will help in a clean and healthy environment since people will be booking appointments online instead of being there in person will add to environmental health that is commendable step taken by American Well which is very time saving as-well. The model below helps in determinants for a long and healthy lifestyle (Social Determinants of Health, 2013). • Technological Factor: Technology plays a vital role in treating people these days. New machines have been created for several disease treatment especially Heart Treatment which is most common problem in US (J, n.d.). Although technology helped increasing life expectancy in US by giving many beneficiaries to citizens but every year there is drastic and unaffordable hike in health budget in maintenance and new machineries to live up people's expectation (Fett, 2000). 2. FIVE FORCES Analysis • Industry Rivalry and Existing competitors: It refers to another competitor who is offering a same product category with better service and cheap price. American Well enjoyed high business revenue being a first mover for several years (Megaminds.wikispaces.com, 2017). Also people switching to various substitute medicine such as herbal or other medicines which are cheap and more effective than those expensive test of American Well. But until 2009, many independent clinics were there competing with AmericanWell and themselves such as: • Threat from New Entrants: Following were give tough competition to american well in-terms of diverse services and prices.: Misterclinic: Opened 7days a week serving customer with just walk-in rather booking appointment unlike American Well . Were having more than 25 stores and costed just $62 and was time saving as well. Redclinic: Established with motive to provide medicine and treatment to flues and cold at very early stage and thus saving people time and money from renting emergency room and expensive bills. Also stated that experience physician is far better than trained nurse practitioner. Another important aspect was huge capital investment as all these clinics were lead by big companies generating revenue from diverse sectors such as grocery, pharmacy, government offices and malls. • Buyer Power: The consumers will be getting ill irrespective of economy being developed or under recession. Despite that, people will still buy medicines on available price and in that manner consumer will not be having any bargaining power (Entrepreneur, 2005). • Supplier Power: Supplier of medicines be generating profits since production cost of medicine is nothing when compared with its selling price (Entrepreneur, 2005). 3. CORE COMPETENCIES • Intangible Assets: Knowledge, experience, Integration of service, first to realize need of E-care facility. • Tangible Assets: IT Support, top management, Internet and technical platforms, Capital 4. STRATEGIES • We believe in-order to become more profitable they should do marketing more often since it's not one time thing. • Another strategy would be generating a break even cost plan with respect it Medicare industry. This will actual help business to cut down cost of operation and give a tough competition to changeable Fee-For-Service. CONCLUSION After doing PESTEL, 5 Force model and Core competencies of organization we believe that above strategy formulated will be best optimized and will provide high profits when applied with proper resource utilization. References 1. PESTLE Analysis. (2017). Free Management Ebooks, [online] (http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf). Available at: http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf [Accessed 5 Apr. 2017]. 2. Frue, K. and Bush, T. (2017). What is PESTLE Analysis? A Tool for Business Analysis. [online] PESTLE Analysis. Available at: http://pestleanalysis.com/what-is-pestle-analysis/ [Accessed 6 Apr. 2017]. 3. Rathore, J. (2017). How has PESTLE factors affected Hospitality Industry. [online] Academia.edu. Available at: http://www.academia.edu/10122060/How_has_PESTLE_factors_affected_Hospitality_Industry [Accessed 6 Apr. 2017]. 4. Amadeo, K. (2017). Obamacare: Simple Enough to Explain to Your Kids. [online] The Balance. Available at: https://www.thebalance.com/obamacare-explained-3306058 [Accessed 5 Apr. 2017]. 5. News, J. (n.d.). Seven Factors Driving Up Your Health Care Costs. [online] PBS NewsHour. Available at: http://www.pbs.org/newshour/rundown/seven-factors-driving-your-health-care-costs/ [Accessed 5 Apr. 2017]. 6. Malloy, L. and Merkowitz, S. (2015). 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