Case Analysis: Mednet.Com

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Quantitatively, we can use the survey results given in Exhibit 3 (For both Mednet.com and Marvel, multiply the % of clicks on ads and % of purchases made subsequently) to identify the Purchase rate from impressions for both Mednet.com (.18%) and Marvel (.028%) respectively. Then we can multiply these figures with the total ad costs for one month respectively for both Mednet.com (1.72 million USD) and Marvel (430920 USD) to get the total number of product purchases made that month. This explains that Mednet.com (30960 purchases) contributes to almost twice the number of purchases of the product each month when compared to Marvel (15960 purchases).

4. (i) To address the emerging competitive threats, Mednet.com could consider expanding its portfolio by including content on alternative healing approaches. This would help increase site visitors. Mednet.com could also consider bringing in advertisers from alternative health sector so that relevant advertisements could be posted along with those articles.

(ii) Mednet.com could also partner up with some corporations in order to provide employees of those organizations with access to Mednet.com through that company’s intranets. This would help Mednet.com creating an alternative source of income

(iii) Mednet.com could also consider entering into partnerships with condition specific websites such as Cholestrol.com with an agreement to redirect to their articles for more exhaustive details, from Hyperlinks on Mednet.com’s webpages. This could also become an alternative source of revenue and would help softening the competitive threat posed by such websites to Mednet.com

Based on the monthly stats given for Facebook and by considering that Facebook follows pay-per-click approach, the monthly ad cost for Windham to advertise through Facebook would be $48000, which is considerably lesser than the $1.72 million it spends for Mednet.com. Considering the low click through rate of 0.04% and the fact that Facebook is a social media website where the site visitors making the click through will be lesser inclined to make a purchase than a Mednet.com visitor, we can safely assume that Facebook would not pose a huge threat to Mednet.com going by the given stats.