Do you ever feel like there just aren't enough hours in the day, especially when you need to see a doctor? What if you could skip the waiting room entirely and still get top-notch medical care? Welcome to Practo, your new healthcare partner that lets you connect with doctors, book appointments, and even order medications—all from your smartphone. Whether it’s a specialist’s advice you need or just your routine meds, Practo brings everything you need right to your fingertips.
Born in India, Practo is revolutionizing the way we access healthcare services, making it super convenient to manage your health on the go. Analysis of Practo's business model provides insights into how each component contributes to its success and sustainability. Let us first understand what a business model means.
A business model defines how a company creates, delivers, and captures value, essentially outlining the strategy a company employs to generate revenue and make a profit from its operations.
There are two types of business models - Business to Customer and Business to Business.
The B2C business model focuses on selling products and services directly to individual consumers. This model is the most common among retail companies, both in physical and online stores. Businesses operating under this model often spend significantly on marketing to appeal to their consumer base and drive sales. Examples include Amazon, Walmart, and most e-commerce and retail outlets. The key is direct engagement with the end consumer, emphasizing customer service, consumer advertising, and pricing strategies that attract individual buyers.
The B2B business model involves selling products or services from one business to another. This model is primarily focused on meeting the needs of other companies rather than individual consumers. B2B sales cycles are typically longer, involve larger and more complex transactions, and require more targeted and professional marketing strategies. Companies like IBM, Boeing, and Cisco operate under this model, providing products and services that other businesses need to operate, grow, and profit. Relationships in B2B environments are built around long-term engagements and bulk purchasing agreements.
Practo is a B2C business model built around a digital-first approach, connecting patients with healthcare providers through an intuitive online platform. By offering services like appointment scheduling, teleconsultations, and an online pharmacy, Practo not only improves accessibility and convenience for users but also creates multiple revenue streams through subscription fees, service charges, and advertising. This model not only supports Practo’s growth but also enhances the overall efficiency of healthcare delivery.
This model ensures steady revenue and helps in building long-term relationships with healthcare providers.
Healthcare providers pay for better visibility and positioning on the Practo search platform, akin to Google Ads in the search engine space. This not only generates revenue but also improves service visibility for practitioners, driving more traffic and potentially higher earnings for them.
Practo charges a fee for each booking made through its platform. This fee is a percentage of the consultation fee. This is a performance-based revenue stream that aligns Practo’s interests with those of the healthcare providers, motivating Practo to continuously improve its booking system.
Patients can purchase medications and health products directly through the app. With the rise in telemedicine, integrating pharmacy services provides a complete healthcare solution to patients, enhancing user retention and satisfaction.
Targeted at businesses looking to invest in employee health. This not only diversifies Practo’s client base beyond individual healthcare providers but also taps into the growing trend of corporate health responsibility.
Selling cloud-based solutions to digitize hospital operations. As hospitals seek to modernize, these solutions offer a significant growth opportunity, especially in emerging markets where digital adoption is accelerating.
Practo has access to a wealth of data on patient behaviour, preferences, and treatment outcomes. By analyzing this data, Practo can provide valuable insights to pharmaceutical companies and research organizations, creating an additional revenue stream while contributing to improved healthcare outcomes.
This strategic approach not only caters to immediate healthcare needs but also builds an ecosystem that supports long-term health management, demonstrating a robust model adaptable to the evolving healthcare landscape.
The practical application of sustainable business model theories is crucial in higher education, and Practo's business model provides a perfect example of this. It is studied as a case study in MBA programs at Top B Schools in Kolkata like BIBS. This inclusion in the curriculum underscores the educational value of Practo’s strategies and their relevance to current business and technological trends. For students, analyzing Practo's model offers insights into successful business practices in the dynamic field of digital healthcare. It highlights how theoretical knowledge can be applied in real-world scenarios, preparing them for future challenges in the business world.
Posted on May 17, 2024
Categories Business Management
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