Case 14
...how drkoop.com came into existence and how the Web has started a movement that has fundamentally changed the health care industry. Where medical information once was reserved for those pursuing years of medical training or in expensive and/or hard to get medical resources books, now medical Web sites represent one of the most visited spaces on the World Wide Web. The success of drkoop.com in terms of traffic of visitors and potential future profits has led to an explosion of medical Web sites. A thorough discussion of the drkoop.com case should address the following main concepts:
Why did drkoop.com gain initial success? What can drkoop.com do moving forward to maintain its top position in the medical Web site domain?
Can drkoop.com ultimately achieve profitability going forward?
Decision Date: 1999 1999 Revenues $ 9,000,000
1999 Loss ($34,100,000)
II. CASE ISSUES AND SUBJECTS
Medical Web site
Entrepreneurial Venture
Internet
C. Everett Koop, M.D.
Launched on July 20, 1998
Profit Forecasted in two years
Stages of Corporate
Development
Instant Success
Rated number one medical Web site for first 8 months
Competitive Strategy
Services Offered
Marketing Strategies
Strategic Partnerships
Evaluation and Control
Financial Losses
Industry Analysis
Negative Cash Flows
Managing Technology and Innovation
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Copyright © 2001 and 2003 by Thomas L. Wheelen and J. David Hunger. Reprinted by our permission only for the Eighth and Ninth Editions of Strategic Management and Business Policy and Cases in Strategic Management.
III. STEPS COVERED IN STRATEGIC DECISION-MAKING PROCESS
(See Figure 1.5 on pages 20 and 21)
O = Emphasized in Case X = Covered in Case
IV....
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