SaskTel
Company/Product/Technology
SaskTel has been operating in the industry for a period of more than 100 years. The company was based in Saskatchewan province of Canada. It has been a part of full service communication industry where it offers services, which range from data and dial up, voice, home phone, wireless, cellular, web hosting, entertainment, high speed industry internet. However, through its subsidiary SaskTel has been serving in the market of security monitoring, hospital room communications, directory assistance and international telecommunications consulting. The product or service offered by the company is the LifeStat service monitoring device that will enable communication between client’s health and the professional caregiver. The device is basically designed to ensure well maintained health of patients. The reason behind providing this service is to look after patients throughout the day. The product developed is ready to launch in the market because the initial tests have shown positive results for the company.
Customers/Markets
The two problems that this product, LifeStat can solve are regarding the diabetes customers and the hypertension customers. Basically, this product will help the diabetes patients at home, on work and will monitor them regularly. However, hypertension customers who will be self monitored. LifeStat is developed to manage both the diabetes patients and the hypertensions customers on regular basis.
Basically, the problem of diabetes and hypertension is dealt with certain measures. As for now, the patients test their blood pressure through normal meters and then take medicine based on the result. The potential end users of this product are different people who use different apparatus and meters to measure their diabetes and their blood pressure. The patients for these products are people in the age group of 60 and above. The person or the patient goes out to buy the product manufactured by the company solely on the recommendation of the doctor and practitioner. They are the influencers who make the patients purchase a certain product and in fact convince customers to go and buy specific products that are manufactured by a company. In this case, the sale or the purchase decision for LifeStat is based on the recommendation by the doctor and health practitioner.
The intermediaries that sell LifeStat as mentioned in the case are the three pharmacies selected by the company that can be used as the intermediary for LifeStat. These three intermediaries are Shoppers Drug mart, London Drugs and the Safeway Pharmacy. These three intermediaries are considered by the company to help them place the company’s new product sales.
Industry and Competition
Porter Five Force Model
Bargaining Power of Buyer: Low
The bargaining power of supplier in the industry is quite low. It is low because since the product or service offered by the industry is actually a life saving drug; therefore, the customers do not have the power to bargain for its prices. They are basically influenced to make decision of buying a certain product on doctor’s recommendation. This attribute of the industry makes it a low bargaining industry for patients or the buyers.
Bargaining Power of Supplier: High
The bargaining power of supplier in the industry is high. It is high is because the number of suppliers who are expert at developing such technical products that are used in curing patients is quite low. Suppliers quote their prices from the companies who pay higher prices to get their customized services manufactured by the suppliers. This attribute of the industry makes it a high bargaining power for suppliers.
Threat of New Entrants: Low
The threat of new entrants is low because of the high start up cost associated with the establishment of such plant where diabetes and hypertension products are manufactured. Along with this, new entrants looking to enter the industry require high capital invest to start up a factory but since the consumer percentage is high; hence, the industry has growth potential too. Moreover, there are cost of raw materials and machinery to facilitate production. Besides, health goods producers must also comply with certain regulation in terms of health and safety for their products as per Canadian government......................
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SaskTel executive committee recently approved the launch of its LifeState health monitoring system for the Canadian market. Senior director of marketing to develop a marketing plan, including the distribution and promotion offered by the product launch in six months. She will have to make quick decisions in order to submit a proposal to the executive committee within two weeks. "Hide
by Elizabeth M. Grasby, Marsha Watson Source: Richard Ivey School of Business Foundation 9 pages. Publication date: April 22, 2009. Prod. # 909A09-PDF-ENG
