Relay Health is a company that has operated in the health care environment for s
ID: 343722 • Letter: R
Question
Relay Health is a company that has operated in the health care environment for several years. This organization has developed a platform whereby patients are able to communicate with their doctors online for consultations (www.relayhealth.com). The adoption of this service has been slowly growing for many years but has not received widespread acceptance in the marketplace by physician groups, although there are many benefits that can be discerned from the platform for patients or employers who might have employees who have doctors who are on such a platform. And, insurers such as Blue Cross and Cigna have also begun to accept that online visits are acceptable and are moving increasingly to reimbursing this approach. In spite of this growing trend, less than 3% of the family physicians in the American Academy of Family Practice report doing e-visits. (1)
In terms of product life cycle, this product is in the introduction stage. Recently, a company called Sophrona Solutions (https://sophrona.com/) has developed a platform that initially was for ophthalmology practices. One of the larger developers is American Well (https://amwell.com/cm/?test=true&gclid=CI7Zw4Xdp8oCFUUTHwodqssEhw), the producer of online care. They have announced that they are expanding their online portal nationally.
The CEO of Relay Health has called you in as a consultant to analyze this rapidly changing market. Provide a perspective around the key concepts discussed in the chapter of the product life cycle. Specifically address the following issues:
1. What stage of the product life cycle is this e-platform in now?
2. Examine the website of Relay Health and these competitors, what options are available for Relay Health to establish a differential advantage
3. several growth strategy alternatives were posed. Consider each alternative for Relay Health. Which one did American Well employ? Which alternatives might be available to Relay Health? How might they be implemented?
Explanation / Answer
1. Product life cycle includes 4 stages. INTRODUCTION, GROWTH, MATURITY AND DECLINE. The eplatform is currently in its growth stage. This is evident from the fact that they have announced to expand their online portal nationally. The growth stage is the one where the product starts recovering costs and earning profits. In this stage the benefits of economies of scale can be reaped up. The market size expands and the firm takes steps to maximize the market by exploring new opportunities. Similarly the platform was initially for ophthalmology but now is expanding to be a national portal. Hence the platform is in growth stage.
2. With the American Well platform, Relay Health faces rapid competition. But with the threat of competition, Relay Health has certain points of opportunities. Being in its growth stage, the platform has potential for expansion. It is readily acceptable amongst patients. Also one potential market can be employees. Their health is responsibility of their employers. But physical checkups can be costly in terms of both money and time. In this scenario, Relay Health's e platform can be beneficial. Proper targeting and promotion can make the platform a great deal of relief for people and thus can capture greater market. Also, the firm can come up with incentives for physicians so as to remove their unrest and provide them with motivation to contribute more. On the other hand, American Well platform is currently blooming nationally but was initially only dealing in ophthalmology. Their focus lies in their expansion. Thus, they might fail to focus on petty details. Thus, this way relay health can convert its threats to opportunities to get a competitive edge.