SaskTel Harvard Case Solution & Analysis

Marketing Situation Analysis

Company/Product/Technology

            The company SaskTel has been part of the industry for over 100 years. Moreover, the company has been operating from Saskatchewan province in Canada. Along with this, SaskTel has been a part of the service communication industry. Moreover, it has been offering services that include dial up and data, cellular, wireless, home phone, web hosting, entertainment, voice and the high speed internet.

            Along with this, the company has also been selling directory assistance, security monitoring, hospital room communication and the international communication through its subsidiaries. The service or the product that has been offered by the company as per the case is the Life Stat which is a service monitoring device that has been enabling the communication between the caregiver and the patient.

            The basic purpose of the device is to look after the health of the patients. The service was to look after patients all through the day. The product Life Stat developed is ready to be launched in the market because the initial tests have shown positive results for the company; therefore, the management has decided to launch it in the local market.

Customers/Markets

            The two most obvious problems that shall be resolved with the introduction of Life Stat are that it shall help patients overcome the hypertension problem and the diabetes issues within the patients. For instance, Life Stat shall help the diabetic patients at their home and on work, while keeping a check over them regularly. In case of the hypertension customers, the product shall self monitor such patients. The basic idea of the new launch is to manage the issues of hypertension and diabetes amongst the patients on regular basis.

            Currently, the issue of hypertension and diabetes has been dealt with the different methods which are as follows. The patients generally test their blood pressure through the meter and take medicine as per the outcome of the test. Moreover, the end users of the product are different kinds of patients who rather use different apparatus and meters to check the blood pressure and diabetes.

            The average age of such patients is 60 and above. The patient generally looks to purchase the product based upon the prescription of the medical doctor. Therefore, it can be said that the doctors are the influencers in the market and generally influence the patients with the purchase. Therefore, in the current situation, the sale or the purchase decision for Life Stat is based on the recommendation by the doctor and health practitioner.

            The intermediaries that shall be selling Life Stat as stated in case are London Drugs, and the Safeway Pharmacy. These three pharmacies shall play the role of intermediary in selling Life Stat to the patients. 

Industry and Competition

Porter Five Force Model

Bargaining Power of Buyer: Low

            The bargaining power of buyers in the industry is low. It is low because the product offered by the industry players are generally life saving drugs and the customer is not left with a lot of options to choose from, other than follow the doctor advice. This confirms that the bargaining power of buyers for the industry is low. The dependency of the patients over the doctors makes the bargaining power low for the buyers.

Bargaining Power of Supplier: High

            The bargaining power of supplier for the industry is generally high. It is high because the suppliers in the industry are highly technical and skillful where they offer technical products and raw materials for life saving instruments. The prices in this industry are quite high as per the supplier demand. Moreover, the companies in the market generally look to pay higher in order to customize their required material.

Threat of Substitutes: Low

The threat of substitutes in the industry is low. The reason for it being low is because the substitutes available in the market are quite minimal. Moreover, the switching cost to the substitute products is also quite high which makes it quite difficult for the buyers to switch products.

Threat of New Entrants: Low

            The threat of new entrant in the industry is low. The reason is low because of the high capital investment that is required by the companies to enter the industry. Moreover, the government rules and regulations also generally make it difficult for the new entrant to enter this field. In addition, the high prices of the raw material are another factor which makes the industry less favorable for the new entrants........................

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