Subject category:
Marketing
Originally published in:
2024
Revision date: 1-Jul-2024
Length: 13 pages
Data source: Field research
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Abstract
Banwari Lal Mittal, the founder and Managing Director of SastaSundar Healthbuddy Limited (SHBL), an online medicine retail company, contemplated a significant strategic decision - whether to enter the physical medicine store chain market or to continue in the online medicine retail business assisted by Healthbuddy, an offline delivery-franchisee of SHBL. The advantage of the Healthbuddy model was that it was agile and required lower initial investment, which enabled a faster entry into the market. However, this model presented certain challenges in terms of standardization. One of the main concerns was that the quality of service provided could differ among various health buddies. On the other hand, there was the advantage of establishing a physical pharmacy chain that was directly controlled by SastaSundar. This approach ensured consistent service quality, enhanced brand image, and provided a more controlled customer experience. But there were significant upfront costs associated with it. Additionally, there were operational complexities that needed to be taken into account. Mittal was also uncertain about the returns on investment, especially considering the intensely competitive physical pharmacy retail market in India. The decision was crucial, and Mittal needed to carefully analyze several aspects and their potential outcomes. As Mittal weighed these factors, he recognized the decision's criticality in shaping SastaSundar's future trajectory and safeguarding against other market threats, while capturing the prospective market in both online and offline pharmacy retail.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2022-2023.Geographical setting
Region:
Asia
Country:
India
Locations:
Kolkata;West Bengal
Featured company
SastaSundar Ventures Limited
Type:
Privately held
Industry:
Pharmacy
Featured protagonist
- B L Mittal (male), Founder
About
Abstract
Banwari Lal Mittal, the founder and Managing Director of SastaSundar Healthbuddy Limited (SHBL), an online medicine retail company, contemplated a significant strategic decision - whether to enter the physical medicine store chain market or to continue in the online medicine retail business assisted by Healthbuddy, an offline delivery-franchisee of SHBL. The advantage of the Healthbuddy model was that it was agile and required lower initial investment, which enabled a faster entry into the market. However, this model presented certain challenges in terms of standardization. One of the main concerns was that the quality of service provided could differ among various health buddies. On the other hand, there was the advantage of establishing a physical pharmacy chain that was directly controlled by SastaSundar. This approach ensured consistent service quality, enhanced brand image, and provided a more controlled customer experience. But there were significant upfront costs associated with it. Additionally, there were operational complexities that needed to be taken into account. Mittal was also uncertain about the returns on investment, especially considering the intensely competitive physical pharmacy retail market in India. The decision was crucial, and Mittal needed to carefully analyze several aspects and their potential outcomes. As Mittal weighed these factors, he recognized the decision's criticality in shaping SastaSundar's future trajectory and safeguarding against other market threats, while capturing the prospective market in both online and offline pharmacy retail.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2022-2023.Geographical setting
Region:
Asia
Country:
India
Locations:
Kolkata;West Bengal
Featured company
SastaSundar Ventures Limited
Type:
Privately held
Industry:
Pharmacy
Featured protagonist
- B L Mittal (male), Founder