MIS712 EBusiness Strategies

MIS712 EBusiness Strategies

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MIS712 EBusiness Strategies

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MIS712 EBusiness Strategies

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Course Code: MIS712
University: Deakin University

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Country: Australia


Analyse the organisation presented in the supplied case study using 3 analytical approaches (PESTLE, 5 forces, Core Competencies) to analyse the organisation to identify strategic changes that would be beneficial and effective. It is recommended that you have a section for each bullet point. This is a working document that needs to convey findings to be used as inputs to the final report (thus the informal structure and no need to introduction/overview section). Use diagrams, bullet points, rich pictures and very concise explanations to demonstrate an understanding of current position of the firm.


Globalization and advent of technology has given rise to the origin of ecommerce market and electronic business (Brown, 2013). Companies around the world are developing technologies, ways and means such that they can cater to their diversified range of customers in a better way. Ecommerce and technology are enabling corporations to extend their core competencies and establishing competitive advantages in the market. The scope of the current report focuses on  American Well which is a leader in telehealth services (www.americanwell.com, Retrieved on 7th May 2017). The aim of the Company is to provide improved quality of affordable and transparent healthcare services for consumers. The Company has developed its website as well as App services to cater to customers and overcome barriers as mobility, time and distance (Hubbard, 2014). The current strategies for the Company has been evaluated by its environmental analysis and then new strategies has been recommended that can help the Company overcome barriers it is facing and become a leader in marketplace.    
Current Strategies Assessment 
Technologies act as mediator in internet marketing, electronic fund transfer, online transactions, advertising, banking and so on. The leading information search engine service companies are Google, Yahoo, Mozilla and so on. American Well is one of leading online complete health care services which cater to its customers by means of website and mobile App systems across America (Bidstrup, 2014). It was founded by expertise of Dr. Roy Schoenberg and Dr. Ido Veteran. The Company’s comprehensive environmental analysis is undertaken by means of macro-environment analysis of PESTLE factors and industry level analysis by means of Porter’s Five Forces of Competition.  
PESTLE Analysis 
PESTLE is an abbreviated form for political, economic, social, technology, legal and environmental analysis (Hill C. J., 2014). American Well’s PESTLE factors are analyzed as below.  
Political Environment: America being a democratic country and one of largest economy of world is fitted to ecommerce business through political stability, continuous support by government given ample opportunities and by providing latest internet facilities and technologies (Heath, 2008). American well has benefited strongly by political structure and aids like system of insurance cover for every citizen. For instance Medicaid and CHIP (Children’s Health Insurance Program) provides health coverage to millions of Americans, with no or limited income and resources. It is also known as government insurance program for every age group people with low income. Telehealth helped people immensely by reducing cost for treatment, time and treatment on time during emergencies. Economy of America is high with increased business, high consumer buying and very less percentage of unemployment. U.S economy is driven by both government and private companies. Because of the political stability in U.S. business or service as web based medical companies as American Well help people (Ambrosini, 2009).
Economic Environment: Inspite of having diversified and large economy of America it is still facing slow growth and that has created less employment and low contribution to economy. Recession during 2007 to 2008 impacted the economy to a great extent. Financial crises has risen due to less employment and low production which continued till 2013. People  with low income faced problems to deal with daily needs, during this time. Medical aid services by government for free medical facilities to low income groups helped deeply to overcome health issues (Elbanna, 2007). Health is directly related to employment and progress of economy. American household income fell deeply after 2007.Income inequality in U.S is higher than any other countries which are a concern towards social stability expressed by economist Robert Shiller U.S healthcare is largely contributed by private companies. Government has most active role and provider of healthcare financially through facilities like Medicaid, Medicare and Children’s Health Insurance Program and so on. Important and bigger change has been seen in 2010 by change in law of health insurance by protection and Affordable care Act (PPACA, 2013) which was made compulsory due to high intensity of accidents, obesity, various chronicle diseases, drugs addictions and so on (Bryson, 2011). America being a leader in medical innovation too, it has been reported by World Health Organisation(WHO) that United States of America spends high percentage of its income and GDP in medical. Law passed by government to pay less for many medicines by means of Medical aid compared to others. As per current report, due to high tax system of upper class people such schemes has been made possible (Ansoff, 2007).  
                                                                                   Figure 1: PESTLE Analysis
Social Environment: America is well developed modern country of world with largest economy holding. Its social background consists of people with varied classes as rich and poor. Rich people keen on private practioner and have generally taken private medical policies or health insurances whereas the low to middle income segment takes benefits from government. Medicaid and Medicare facilities are free for those with no income and low cost medical treatments are for people with low incomes and resources (Hill, Jones, & Schilling). Children’s health insurance program (CHIP) helps to save future generation from many diseases. Senior citizens too benefited largely by the plans.
Technological Environment: Unites States ranks highest in Technological inventions and innovations. Internet facilities as online services by the company’s website has made easy to purchase medicines instantly, free home deliveries for public on emergencies and daily requirements. Increased use of internet services across the country at homes and working place has helped to connect to doctors and hospitals via MMS(Multimedia Messaging). Telehealth by American Well has resulted in great help to people with easy communication, low cost medical treatment by savings time (Jarzabkowski, 2007). Recently American Well has developed mobile application for instant medical aid anywhere anytime.
Legal Environment: America’s legal system is has founded by strong government. U.S. is linked with HIPAA for communication for latest health information.
Porter’s Five Forces Analysis
Industry analysis can be well understood by means of Porter’s five forces analysis tool that provides relevant inputs regarding medical facilitates providers (Porter M. E., 2008).    
Potential new entrants: American Well is new innovation for medical aid online prompt health services for American citizen with million dollars of finance investment. Hence threat from new entrance threat is comparatively low for both short term and long term unless some company enters with strong finance sources with new latest and advances medical services with best of doctors.
Supplier power: America with advanced economy has power of brining business faster, so supplying chain is bigger in every sector which proves the presences of competitors at higher level like Med-fusion, Cisco and so on. So, American Well has to put new policies and facilities to attract more customers online.
                                                                      Figure 2: Porter’s Five Forces Analysis
The power of Buyer:  The country provides best government facilities for public with low income group as Mediaid and for high income private insurance policies. Hence the power of buyer is relatively low (Porter M. , 2008).
Availability of substitutes: Uneducated  and poor people have less online facilities to connect to medical provider  like American Well. Hence, they prefers to take aid by direct services providers like privates doctors clinics and hospitals as substitutes.
New Strategies 
Online or web services with innovative technology has helped to grow business at great pace. Globalization through internet services with best facilities and accessibility helped people to get instant medical treatments at low cost and by saving time too by medical companies as American Well (Zhao, 2008). Success of such online business has been more productive for people after invention of smart phones, tablets in market along and Wi-Fi facilities across country. E-commerce has established strong bonding between customers and service provider. Competition nature has forced to adopt ecommerce business to deal with challenges to become a leader in respective fields via online marketing, fulfilling needs of customers, by using latest technologies and so on. American Well provides video conversation facility to handle the patients more sensitively and by giving possible medical insurance facilities online without hurdles.
Vision: The Company aims to provide affordable, fast and effective health care services to its customers by means of webs enabled services.  
Mission Statement: To become the market leader in USA healthcare field.
Objectives: The objectives of the Company area as follows;

Objective 1: To provide affordable health services
Objective 2: To bring best of health services sitting at the comfort of homes
Objective 3: To provide emergency services to patients
Objective 4:To provide highly accredited doctors
Objective 5: To cater to services by use of latest technology and offer privacy protection and concern

Value Creation:
The Company creates values by customer based enabled CMS. CMS stands for Content Management System Every online based companies should be aware and responsible to keep latest updates of their business and facilities at regular intervals. New innovations should be highlighted and past system should be removed from websites to remove confusions for customers using services (Barney, 2015). Website presentation can attract attention to use its services, it’s an advertisement strategy. Uniqueness in services holds customers and brings new customers with recommendations. American Well understand peoples medical urgent requirement and considering that it has developed website containing every details about doctors and specialist details to get easy access to services.
Market has emerged well with others countries with the help of internet and web technology. Organizations created huge business with the aid of online business facilities by studying people’s nature and taking measures to make changes for betterment and take business at higher level. A mobile application in smart phones has given better prompt use of company’s services any time. American well has 24 hours online services for patients and people via creating their online phone application (Bani-Hani, 2009). Best doctors are available to treat and prescribe medicines for diseases which does not require special visit for check-ups. Smart application by American well has helped to deal with competitions with other Telehealth company based in US like as Med-Fusion, Cisco and so on. Initial years American Well gave services through insurance companies as mediator, but after 2013 they have served best possible medical treatment to customers com patients directly through online website and mobile application.
Target Segment:
Ecommerce system helps to reach the people across the city or country with the best possible medical services by proper website designing and special offers and discounts at any place (David, 2016). The Company’s target segment consists of the following;
Demographic Segment: User of American Well Teleheath medical services gives personalize care to their customers on regular basis with the help of user friendly online website services. There are various users of the Company’s products across low and middle income segments consisting of both the genders. The age group for the services consists of 25 years to 55 years of age as they make highest possible use of internet.
Geographic Segmentation: The Company aims to attain to customers from USA only. Thus, the geographical area for the Company is limited.
Psychographic Segmentation: The Company caters to those customers who are unable to go to a hospital or who wants to avail use of such online services. Giving services better than other competitors in same field attracts more patients (Furrer, 2008). Company’s easy accessible website design with proper segmentations of doctor’s availability and instant services are one of the new strategies American Well can design and implement for more business and clients.
                                                            Figure 3: e-Business Strategy Implementation
Privacy, ethical and legal issues
The Company has adopted highest levels of safety for its website and Mobile App. The Company also provides privacy protection to consumer data protection (Hill C. a., 2013). The website and other proceedings of the Company adheres to legal standardization.  
External Partners:
Medical treatments in today’s world are facilitates by Medical insurances by government and many private companies to help people to treat either free for low cost income group or poor class people without any income. American well has grown business with tie up with medical insurance. Creating updated brochures and information for health plans, facilities and product information such that consumers can feel secure and satisfied for using best products. The Company’s external partners will include doctors, medical insurance companies, hospitals and so on.
Organization Model:
The Company has a vertical organization model that has divided responsibilities amongst various employees (Sanders, 2007). The Company is headed by its founders and the its organization model is charted in the figure below.
                                                                              Figure 4: Organization Chart
                                                                                        Source: Author
Revenue and Cost Model:
The Company charges a brokerage fee from each and every service rendered to its customers. The Company makes payment to its doctors and suppliers of other services accordingly and retains other portion in form of revenue. The Company follows a low cost strategy.   
Strategy Alignment:
American Well is highly strategically aligned to its business and it derives its key advantages from its value chain analysis. All functionality of the Company is strategically aligned to its business and is based on the vision of its founding members.
Smart phones innovations have taken business more globalized and easy to operate within and outside country. Company’s mobile application designing and creation has helped people of America to make use of medical fast easy and emergency services online not at home but any time and at any place via mobile (Thompson, 2007). Company’s information and its existence is more known in people through advertisement and promotional strategy with use of internet, Social sites as Facebook by creating company’s page and its services.
Website and apps should be redesign and updates by highly professionals to make it more users friendly and attracted for customers. Latest technology helps to design online web service in such a way to easy handle and operate urgently by even uneducated and senior citizens not used to on daily basis. Website should be tested before launching and updating its operation and open for people to avoid consequences during its emergency use. Over the next 6 months the Company should aim and develop strategies such that it can occupy major share in the market. The following recommendations will help the Company in terms of its strategic expansion.

The Company should adopt extensive SEO and SEM strategies for its targeted market segment to create more awareness regarding its products.
The Company should adopt a quality rating and evaluation practices which will enable it to develop and cater to maximum number of customers.
It can expand its targeted segment such that it can expand the scope of its current services.

Ambrosini, V. &. 2009. What are dynamic capabilities and are they a useful construct in strategic management?. International journal of management reviews, 29-49.
Ansoff, H. 2007. Strategic management. Springer.
Bani-Hani, J. a. 2009. The impact of core competencies on competitive advantage: Strategic challenge. International Bulletin of Business Administration, 6(6), 93-104.
Barney, J. a. 2015. Strategic management and competitive advantage concepts and cases. Pearson.
Bidstrup, M. &. 2014. The paradox of strategic environmental assessment. . Environmental Impact Assessment Review, 29-35.
Brown, S. B. 2013. Strategic operations management. Routledge.
Bryson, J. M. 2011. Creating your strategic plan: A workbook for public and nonprofit organizations. Vol. 3. John Wiley & Sons.
David, F. a. 2016. Strategic Management: A Competitive Advantage Approach, Concepts and Cases.
Elbanna, S. a. 2007. The influence of decision, environmental and firm characteristics on the rationality of strategic decision?making. . Journal of Management Studies, 44(4), 561-591.
Furrer, O. T. 2008. The structure and evolution of the strategic management field: A content analysis of 26 years of strategic management research. International Journal of Management Reviews, 10(1), 1-23.
Heath, R. a. 2008. Strategic issues management: Organizations and public policy challenges. Sage Publications.
Hill, C. a. 2013. Strategic management theory. South-Western/Cengage Learning.
Hill, C. J. 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hill, C., Jones, G., & Schilling, M. (n.d.). Strategic management theory: an integrated approach. Cengage Learning.
Hubbard, G. R. 2014. Strategic management. Pearson Australia.
Jarzabkowski, P. a. 2007. Strategic management as an applied science, but not as we (academics) know it1.
Osarenkhoe, A. &. 2007. An exploratory study of implementation of customer relationship management strategy. . Business Process Management Journal, 139-164.
Porter, M. 2008. The five competitive forces that shape strategy.
Porter, M. E. 2008. On Competetion. United States of America: Harvard Business School Publishing Corporation.
Sanders, N. R. 2007. An empirical study of the impact of e-business technologies on organizational collaboration and performance. Journal of Operations Management, 1332-1347.
Thompson, A. A. 2007. Crafting and executing strategy. The quest for competitive advantage. Concepts and cases. 15th edition, New York, NY. 
www.americanwell.com. (Retrieved on 7th May 2017). Company Profile. https://www.americanwell.com/about-us/.
Zhao, J. H. 2008. An empirical study of e-business implementation process in China. IEEE Transactions on Engineering Management, 134-147.

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