Quickmedx Company – Study Case
Innovative service business models that behave disruptively in the market and have the opportunity to overtaking existing market leaders in the industry and QuickMedx is a good example of such a disruptive model. Unlike outpatient clinics and emergency care centers, QuickMedx offered a fast and convenient way at low cost to its customers to get treatment for common illnesses such as strep throat, influenza, ear infection, pink eye and seasonal allergies which people had to wait for hours at clinics to get done.
QuickMedx established itself in high volume retail shopping environments and teamed up with Supervalu’s Cub Food shopping center chain to open up kiosks that would target customers and provide them with quick diagnosis of their illness. At the kiosks, QuickMedx had Nurse practitioners (NPs) who where the window person to the customers and would walk them through a strict set of guidelines which would last from five to ten minutes and will allow the NPs to asses using computer systems whether to either treat, prescribe or direct the customers to a another clinical setting if required.
Basically they had observed the necessity and delivered a service that was cheaper and convenient to the public and targeted a broad demographic at high volume shopping areas. QuickMedx was focused to remain as a pay as you go retail clinic that would provide common illness solutions within in minutes without intending to be a primary healthcare center to treat major illnesses and later on collaborated with insurance companies to increase customer volume.
The challenges faced by QuickMedx were a hurdle as it for any disruptive technology having characteristics of a new business model and away from the existing norm; they did not have sufficient data to forecast stability for the future. NP’s were hard to retain and the major issue was to decide on what to do next in order to grow. Raising capital was an issue as venture capitalists were focusing on other industries to invest in. The response from consumers was satisfactory with the effective target market being primarily in areas where kiosks located in lower-economic demographic regions.
Due to the disruptive nature of the business, QuickMedx came under fire from the healthcare industry and had to retaliate by stating that QuickMedx is providing a service that is not intended to be a primary healthcare provider and if the diagnosis results in anything serious, they will have to direct the patients to a hospital or emergency center to get treated. They had realized the need from the healthcare consumer base so that they could find a way around and introduce this disruptive technology to the market and gain market share to eventually become leaders.
What is the QuickMedx Business Model? QuickMedx business model is a low-end disruptive business model. This low-end disruption eventually undermined long wait times and sales of expensive clinics and hospitals. Is it viable? Like any low-end disruptive business model it is susceptible to risks and instability with lack of benchmark and with its fixed cost structure, it would work will with a low price point and high customer volume which QuickMedx did well by targeting customers that did not need to use the full functionality of a big expensive hospital.
Is QuickMedx a disruptive technology? Companies that have disruptive innovations or technology usually have characteristics to tend upward in the market with increasing performance targets but QuickMedx was not intending to replace any hospitals by providing treatment for major illnesses. QuickMedx is merely trying to provide a service that will grab market share by the low-end disruption. How should QuickMedx grow? QuickMedx will eventually reach a point where it will not able to grow further.
Initially however, they can expand by collaborating with other high volume shopping chains and open up more kiosks, team up with government services that require basic health checks, use resources like the internet to gain target volume, keep listening to patient requirements and try to incorporate more solutions as much as possible. NP’s should be given hope that there will be a career in this field by motivating them with the service’s success so that they stay long term. Hold off expansion plans until sufficient capital is gained or keep approaching banks or private placements for capital.