Succeeding the deregulation of the Irish pharmacy industry, big competitors entered the market, upsetting small private players like independent chains and single store outlets. Others announced price cuts of up to 31 per cent on drugs, while a number of the new competitors executed innovative technologies. Should the market shares for small-scale players decline, but the downturn, changes in payment structures, diminished consumer loyalty and government spending cuts farther reduced drugstores' profit margins. Many private pharmacists had noted that other pharmacies in Ireland and in the USA had successfully adopted connected health technologies (CHTs) to improve their functionality.
To be able to compete against strong multinational retail pharmacies, make any required alterations and private pharmacists needed to assess their business models. Should they reinforce their current business models or attempt to innovate? Did they possess the capabilities to develop CHTs and would these investments prove worthwhile? Peter McNamara is affiliated with University College Dublin.
PUBLICATION DATE: November 18, 2015 PRODUCT #: W15523-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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