Connected Health Technology: Private Pharmacies Competing Innovatively in Ireland

Description

After the Irish pharmacy industry’s deregulation, large competitors entered the market, upsetting small private players like single shop outlets and independent chains. While some of the new competitors implemented sophisticated technologies, others announced price cuts of up to 31 per cent on drugs. Not only did market shares for small players shrink, but the recession, changes in payment structures, government spending cuts and decreased consumer loyalty further reduced pharmacies’ profit margins. Many private pharmacists had observed that other pharmacies in Ireland and in the United States had successfully adopted connected health technologies (CHTs) to improve their performance. In order to compete against powerful multinational retail pharmacies, private pharmacists needed to analyze their business models and make any necessary alterations as soon as possible. Should they reinforce their current business models or try to innovate? Did they have the capabilities to develop CHTs and would these investments prove worthwhile?

Learning Objective

·Understand fundamental business strategy tools, including industry analysis, competitive strategy, and resource and capability tools. ·Appraise the various business models outlined. ·Identify competitive tensions in the market. ·Appreciate how value can be added and captured in a highly competitive and saturated market.

Keywords

Business model innovation celtic tiger Deregulation Industry analysis pharmacy