American Well - Case Analysis (Sec C - Group 4​)

In 2006 Ido and Roy Schoenberg founded American Well with the vision to use the Internet and
telephony to connect physicians with patients, within minutes in real time. After 3 years they are
ready with their next service concept “Team Edition” , which would add connectivity between primary
care physicians (PCPs) and specialists. The founders are also contemplating new customer segments
too. Before they reach a strategic decision they need to understand the micro and macro environment
factors of marketing environment through the​ 5 C’s Analysis​:
1. Customer​: The patients need immediate, convenient, affordable and quality service with
flexibility in choosing appointments and doctors. The choice of platform depends on waiting
time, cost, choice of service, privacy, security and reliability.
2. Context: Economic (Insured patients are more likely to go for Hospital care), Demographic
(less presence in rural, almost 20% people will be more than 65, by 2018), Political (HIPAA,
Payment Code), Technological (use of IT infrastructure in Healthcare), Socio-Cultural
(communication shifting to electronic media)
3. Company: American Well follows a combination of upfront and recurring revenues. It would
earn a recurring fee for every online care transaction. Prime customers of ‘Online Care’
include insurance companies who target their enrolled customers, and would pay one time fee
for each “addressable life”.
4. A. ​Collaborator:​ Providers/Doctors, Insurance Companies and IT services.
B. ​Complementors:​ Insurance Companies, Providers (Hospitals, Doctors, etc)
5. Competitors: Service provided by AW is quick and quality is ensured. RelayHealth has no
connection in real time between PCP and Specialist whereas American Well fulfilled this gap.
Other providers do not have an edge on this technology. But the dynamics of this field makes it
prone to future competitions.

Porter’s 5 Forces: HIGH LOW

1. Competition/Rivalry in the Industry

Strong presence of Tele-medicine services and other
conventional offline care.

2. Threat of new entrants

- Business model easy to replicate
- Low brand loyalty

3. Threat of Substitute Products

- Traditional method of visiting doctors physically
- Advancement in IT Technologies

4. Power of Suppliers
- High availability of Doctors and Specialists
- Physicians can be replaced by PCP’s

5. Power of Customers
AW directly engages with insurance providers and employers. Owing
to indirect service and high quality and quick service, customers have
low power of bargaining.