Mednet Case

The variables that can be controlled by Mednet (MN) are Content, Price, Structure, How to generate revenue and the target market. The variables that MN has very limited influence are Government Regulations, How many people really buy the products via advertisements and how many competitors are entering the market.

MN has to broaden its customer base. It has already positioned itself in providing scientific based content to the visitors. Now it needs to position itself in multi dimensions (Alternate Medicine) like natural cures, acu-puncture ,chiropractic, herbal, homeopathic medicine. In this way MN is broadening its base and maintaining its strength area it can provide customers with additional data related to alternative treatment for ailments by sharing /promoting the homeopathic and herbal remedies and thus help customers in leading a healthy lifestyle in addition to medicine. This can be an extension of their services. An analogy of positioning like this can be drawn when Toyota Camry offered a hybrid version to the environment conscious consumers and was able to establish points of distinction as well as points of parity. This can work well for generating revenue if relevant Ads are complimenting the content which consumers are looking at. Consumers interested in natural remedies (NR) don't care of pharmaceutical ads for medicines, which mostly are known to cause some side-effects .However if MN can get business from advertisers from alternative medicine category, who provide these services, products then this can be taken care of. This will positively influence the MN's current situation by triggering competition amongst other category of advertisers as well to show their ads on MN. Based on all above dimensions, this option should be best bet for MN. The parts that can get affected from this strategy are number of monthly impressions, as few of the existing customers may also go for NR section as well as it broadens their options. It may increase the total Ad costs initially but in long run it can help as discussed in later part of the analysis.

The first option appears to be the worst option for the MN given the situation it is currently in, and also given that it has to revamp its model for long –term stability as well. Based on the exhibit's data it is clear that the visitors liked MN because the content provided was free and 75% of the respondents said they will not like to pay for content. MN's business model was based on three main principles. To provide scientifically based medical information to non-professional consumer audience, give this information for free and to generate profits from Advertisements. Therefore the option of taking a diagnostic approach and charging customers for the content may not help the company in this crisis situation and has likelihood of further decrease the traffic of the visitors. Other possible hurdles to implement this approach may come in the form of dissent