Mednet Case Analysis
Essay by cleversasu • July 25, 2018 • Case Study • 741 Words (3 Pages) • 1,258 Views
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MedNet is a health information website which was launched in the year 2002. The average monthly users that visited the website were 4.3 million. The company was also able to generate profits of $1 million within 4 years since its inception. MedNet faced competition from various non-profit and government websites also in terms of visitors. There were health symptoms specific websites which also competed with MedNet in terms of advertisements. MedNet used to bill the advertisers on the terms of CPM (Cost per Mille or Cost per thousand impressions).
Marvel, a search engine, had gained the attention of the companies because it had started advertising in the CPC (Cost per Click) model. This made the companies rethink about their investment into advertisement. The model followed by Marvel is to bill the customers only when the user clicks on the ad which means Marvel gets more paid if there is a good Click Through Rate (CTR).
MedNet followed Impressions based model and Marvel followed CPC Model. Hence, Marvel is charging lesser amount based on CPC when compared to MedNet. Therefore, Windham Pharmaceuticals, are rethinking about its expenses, as they are paying almost six times to what they would have paid ideally.
PROBLEM STATEMENT
In what ways can Heather Yates retain Windham Pharmaceuticals to continue doing business with MedNet.com
SWOT LISTING FOR MEDNET:
STRENGTHS | WEAKNESS |
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OPPORTUNITIES | THREATS |
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COMPETITION
MedNet did face any competition until 2007. Later, it faced competition from government and non-profit websites regarding visitors. This competition in terms of visitors is because the content generated on the websites are related to mainstream medicine. But most of the audience choose MedNet because of its simply structured articles and alternative therapies. In terms of advertisements, MedNet is facing competition from newly emerging websites which focusses on a particular problem. The new websites are believed to draw money away from MedNet. The audience for these websites were relatively less compared to the size of the audience of MedNet.
PESTLE ANALYSIS
Political | Economic | Social | Technological | Legal | Environmental |
The state and federal government regulations (and the laws of many foreign nations) required consumers medical advice to be dispensed in person by a licensed physician | Not Applicable | The alternative health audience don’t trust pharmaceutical companies or Western medicine | Pay-per-click advertising model was becoming popular as compared to pay-per-impression model in 2007 | Not Applicable | Not Applicable |
POSSIBLE SOLUTIONS
Option 1: Making the website prescriptive and diagnostic
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