Abstract
The volume-based procurement system, initiated as a part of the medical reform in China, made a huge dent in the sales of a wide range of drugs of AstraZeneca, a multinational pharmaceutical giant. Meanwhile, the COVID-19 epidemic catapulted the online pharmaceutical industry into rapid development. In a situation where crises were mingled with opportunities, AstraZeneca tried to establish Yiliyili.com, an online medical service platform, by leveraging the offline resources it had accumulated.
With 14 years of experience in pharmaceutical e-commerce, Chen Hua, CEO of Yiliyili.com, set up an innovative "doctors-to-pharmaceuticals" model in contrast to the mainstream that ran the otherwise. To shape this model, Yiliyili.com engaged doctors from its contracted offline hospitals online to build a stable and active doctor-user base, and then empowered them with supporting services, while replicating the existing doctor-patient relationships online. Meanwhile, Yiliyili.com extended its offline sales of medical and pharmaceutical products to value-added services, such as case management and compliance-related services for patients, and provided prescription drugs other than essential drugs at non-public offline hospitals based on the patients' needs in order to improve its marketing abilities for such drugs. Furthermore, by making the most of its marketing capabilities for prescription drugs, Yiliyili.com forged partnerships with other medical equipment manufacturers to build an integrated marketing platform, through which it could spread the fixed costs of maintaining a large marketing team.
Could Yiliyili.com outmaneuver its conventional peers by leveraging this service-heavy strategy against the latter's service-light models, and by harnessing its offline strengths to outcompete their online advantages? Could it gain a competitive edge amidst the construction boom of online hospitals and stand a chance of becoming a paragon in delivering cost-effective service excellence?
Translated title of the contribution | AstraZeneca China: Cost-effective Internet Healthcare Services |
---|---|
Original language | Chinese (Simplified) |
Number of pages | 18 |
Publication status | Published - 1 May 2022 |
Case number
MKT-22-955Case normative number
MKT-22-955-CCCase type
Field CaseUpdate date
15/05/2023Supplement
For more details, please visit www.chinacases.orgPublished by
China Europe International Business SchoolKeywords
- internet hospital
- mature offline doctor-patient relationships
- Cost-Effective Service Excellence
- pharmaceutical sales representatives
- China's volume-based drug procurement scheme
- multinational pharmaceutical companies
Case studies discipline
- Marketing
- Organizational Behavior
- Strategy
Case studies industry
- Health Care Services