SaskTel Harvard Case Solution & Analysis

Rivalry among Competitors: High

The rivalry among industry players is quite high. It is high because along with SaskTel, other major industry players are AMD Telemedicine Inc., Philips Medical System and the CyberNet Medical. All these industry players are giants in terms of their presence in the international market.

Threat of Substitutes: Low

The threat of substitutes in the industry is low. This is because of the limited number of substitutes available for products that are offered within the industry. Along with this, the switching cost is also high that makes the industry players to demand higher prices from patients or customers.


PEST Analysis

Political Factors

The political condition of the healthcare sector in Saskatchewan was quite beneficial for industry players including SaskTel because it was a positive industry due to the Canadian Government support for each industry player. The Canadian government has actually lowered the prices for raw materials and machinery to improve the condition of the industry in favor of industry players.

Economical Factors

The economical condition of the industry and specifically SaskTel is quite helping and in favor of the company. The main reason is that the economy is at a boom and it creates opportunity for companies to come in and invest in the healthcare sector. Along with this, the income levels of the people have increased too.

Social Factors

The Saskatchewan population consisted of 14.88 percent people above the age of 65. This meant that the chances of them being patients of diabetes and hypertension were likely to be higher than other states or provinces in the country. Since, the income level was low in the province therefore; the company could not charge higher prices for LifeStat.

Technological Factors

SaskTel was quite well equipped when it comes to being highly competent in technical aspect of healthcare industry. The launch of new service or product, LifeStat was a prime example of the company being technically advance. Although, the company was a part of the telecommunication industry but it was also advancing in its the healthcare sector. With ample amount spent on R&D, SaskTel has been widely seen as an innovative company. Information technology market will increase by 15% in the next five years.


The province of Saskatchewan has developed collaboration with Diabetes Association of Canada (CDA), which is looking to provide facilities to the citizens who are suffering from diabetes. The association regularly checks the sugar levels and glucose levels of patients and help SaskTel through promoting their new product, LifeStat by building credibility regarding the image of the brand.

Market Potential

Sales Target

Devices that are offered to diabetes patient are 2529,032 units whereas; the patients of hypertension are 4710,322 units. The above estimates are made on the following assumptions:

  • The total population of Canada is 31,612,897.
  • Annual demand of diabetes devices is 8% of total population whereas; the annual demand of hypertension devices is 14% of total population.

Opportunities/Issues Analysis

SWOT Analysis


Diverse Portfolio:

SaskTel was a premium telecommunication company with diverse product range. However, the company also entered heath care technology by offering products and services that range from security monitoring, directory assistance, hospital-room communications to health care sector and telecommunications.

Technically Advance product:

With the launch of LifeStat, SaskTel is looking to offer a better service or product to the patients where they can be monitored on regular basis and can be checked for future medical diagnosis.

Relationship with Canadian Government:

The relationship between Saskatchewan province and SaskTel is quite healthy as the government gives full support to the company with leverage in different areas.

Financial Stability:

The company is financially strong with numerous businesses in its company profile.


Lack of Expertise:

The company has very less expertise in medical industry as it has been operating as a telecommunication company.

Increase in clinical costs:

The clinical costs within the country were increasing which made the company to increase the prices of products.

Costly Product:

The price of the product is quite high as compared to the income levels of the citizens in the country.


Market Growth

The market of health care industry was expected to grow at a rapid pace of 15% in the next five years....................................

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