Pre Medo Call Mobile Application aims to become a platform that connects elderly citizens with family members for support, medical staff for general professional advice, and providing sufficient historical information for medical doctors to make informed decision-making for prevention and maintenance of chronic diseases. Pre Medo Call is a platform that aims to connect all related parties in one loop, everything revolves around one goal, a sustainable prevention or maintenance of chronic diseases in elderly parents.
CONTENTS (cont.)
LIST OF TABLES
LIST OF TABLES (cont.)
MACRO-ENVIRONMENTAL ANALYSIS (PESTEL)
Summary of Macro-Environmental Analysis
Environmental Trends
- Megatrends
- Entrepreneur Rise
- Global Marketplace
- Urban World
- Resourceful Planet
- Health Reimagined
Non-communicable diseases are responsible for 75% of global healthcare expenditure, which is estimated to reach $47 trillion by 203015. Currently, healthcare accounts for 10% of global GDP, putting increasing pressure on governments to reduce these costs16.
Economic Trends
Today, there are more than twenty thousand mobile healthcare applications available that create real-time data, analyzes and interventions17. Meanwhile, the global healthcare analytics market is expected to grow at a cumulative rate of 23.7% between 2012 and 201719.
Social Trends
- Internet Access
- Social Media
- Online Purchase
- Health
In 2008, as shown in Figure 1.32 Health/Medical Expenditure on GDP, these costs almost reached 10% of GDP34. On the other hand, stretching resources to their capacity as shown in Figure 1.36 Population per hospital bed.
Political and Regulatory Changes
- Government Subsidies
- Corporate Income Tax
- Venture Capital & Trust Funds Tax Incentives
- Private Funding
- Public Funding
Not only that the government is supporting Tech Startup in terms of increasing funding and lowering taxes for both SMEs and their related venture capitalists, but private banks are also jumping in to support this ecosystem. Generally, the business environment for Tech Startup has been positive, being the center of attention from both the public and private sectors for abundance of funding, reduction of taxes for all related parties as well as deregulations for reduction of red tape.
NATIONAL ADVANTAGES
- Factor Conditions: High
- Demand Conditions: High
- Related and Supporting Industries: High
- Strategy, Structure, and Rivalry: High
- Government: High
- Summary of National Advantages: High
Thailand has the highest percentage of aging population in Southeast Asia, at 14 million people42, as shown in Table 2.4 Aging population in Southeast Asia. The medical industry in Thailand is intensely competitive among hospitals, as shown in Table 2.5 Hospitals in Southeast Asia. Thailand has the second most hospitals in the AEC region42.
BUSINESS OVERVIEW AND BUSINESS MODEL
Business Overview
Business Model
Legal Considerations
Since the mobile application is neither a physical place nor a vehicle, but located within the Internet, it does not fall within the definition of a hospital from a legal point of view. In addition, the mobile application office itself does not provide any medical services, all services are provided by an individual nurse in cyberspace.
INDUSTRY ANALYSIS: FIVE COMPETITIVE FORCES MODEL
- Threat of Substitutes: Low
- Threat of New Entrants: Moderate
- Rivalry among Existing Firms: Low
- Bargaining Power of Suppliers: Low
- Bargaining Power of Buyers: Low
- Industry Forces Summary: Low
The weakness of this application is its inability to recommend which food you should eat or not, in order to control the diet for specific purposes. The weakness of this application is that it ignores nutritional values as another factor for healthy living.
COMPETITIVE ADVANTAGES: SWOT ANALYSIS
- Strengths
- Team
- Weaknesses
- Limited Funding
- Opportunities
- Aging Population as Social Trend
- Internet Usage as Social Trend
- Threats
- Law & Regulations
- Competitive Advantages
Although based on current laws and regulations governing medical professions and medical services, the current mobile application business model is still considered compliant with the law. However, as we can see from the example of Uber and Grab Taxi services around the world, these laws and regulations can be changed, which can have a negative impact on the business model. Our network with medical professionals and related medical associations can support the company in conducting appropriate public relations to demonstrate the more positive impact this application will have on society.
MARKETING PLAN
Vision
Mission
Marketing Goal
Marketing Objectives
- Market Share
- Profit Margin
Market Segmentation
- Demographic
- Geographic
- Behavioral
In general, urban family size tends to be smaller than rural families. As a result, there is a greater tendency for elderly people in the city to be left alone at home, while all their children are out to provide for themselves. On the other hand, rural elders may also suffer a similar fate as their young people leave their homes to work in urban cities such as Bangkok. However, the rural community tends to be much more supportive and helpful than what we can observe in urban society, where the family becomes more nuclear and divided.
Target Market
- Primary Target
- Secondary Target
- Target Population Estimation
The secondary target group is soon-to-retire middle-class seniors between the ages of 50 and 59 who live in urban areas and are preparing for retirement. This market is considered a niche market for a period of six years, which makes it initially unattractive for large companies to enter and compete in this market. We will have first mover advantage in the market and then expand many revenue channels.
Brand Positioning
Brand Essence
Product Strategy
- Health Programs
- Product Screens
The app is a freemium, with pay-per-use for extra features as shown in Figure 6.7 Home screenshot. The user chose to walk for 3 minutes to stay healthy as shown in Figure 6.31 Exercise database screenshot. Consultation can be scheduled in advance in this scheduling function, as shown in Figure 6.47 Scheduling screenshot.
Price Strategy
- Application Structure .1 Freemium
- Revenue Channel
- Final Price - Pricing Strategy
- Marketing Price - Pricing Strategy .1 Decoy Pricing Strategy
Pricing will be based on willingness to sell plus a mark-up, establishing a minimum price floor. The willingness to sell part of the minimum price will be transferred to medical professionals to guarantee the minimum income, while the fixed percentage will be considered gross profit for the company. The lure price is set at 475 THB, or 95% of the willingness to pay the price, as shown in Figure 6.58 Pricing Strategy.
Channel Strategy
- Customer Channels
- Supplier Channels
In this way, approaching main associations for support will be sufficient information channel for providing retired nurses. As for current nurses, our main channel of information will be directed at social media users related to the hospital. The second channel of information will be coordinated with offline channel partners such as hospitals for physical banner ads.
Integrated Marketing Communication Strategy
- E-Commerce Marketing
- Word of Mouth Psychology
Out of these people, there will be those who like and install, known as Click to Install (CTI). Online advertising will be in the form of Google Display Ads in the search engine to support Facebook for the amount of Click to Impression (CTI), but inactive in Click to Install (CTI). All customer relationship management and sales promotions will be done using game mechanics or insider scarcity and exclusivity.
Market Research
- Research Design
- Elders Market Research
- Medical Professionals Market Research
Based on the respondents, 63% are female, 37% are male, as shown in Figure 6.78 Willingness to Pay Gender of Respondents. Based on 162 respondents, 98% are former female nurses as shown in Figure 6.81 Retired Medical Professional Gender. Respondents have different incomes before retirement, as shown in Figure 6.83 Survey of Retired Medical Professionals Income before retirement.
Operational Plan
- Place
- People
- Software Development Expert
- Nutrition Expert
- Hospital Network
- Permanent IT
- Business Administration
- Physical Evidence
- Process
The application is made up of two main areas of expertise, nutrition for healthy living and software development, while the remaining areas are business administration expertise. Our team consisted of a partner with expertise in software development who will further assist in maintaining and developing the application based on customer and supplier requirements. We will hire an IT expert since the beginning of the first year to further develop the application according to consumer preferences.
ORGANIZATIONAL STRUCTURE
Shareholding Structure
Organizational Structure
FINANCIAL PLAN
Financial Structure & Policy
- Social Commerce: Facebook Conversion Costs Rate
- Online Advertising: Google Online Display Ads Conversion Costs Rate
- Social Commerce: YouTube Ads Conversion Costs Rate
- Free Trial
- Customer Royalty Program: Dinner Vouchers
- Social Currency: Family Contest Prize
- Price per Call
- Number of Calls per Month
- Withholding Tax
- Corporate Income Tax
- Application Development Cost
- INMUCAL Database Cost
- Website Development Cost
- Software Amortization Cost
- Technician Recruitment
- Office Rental
- Server Rental
- Media Clip Production
- Event
- Banner
- Credit Term
CPC Thailand is 58% cheaper than CPC USA, where CPC USA costs 53 THB per click, making CPC Thailand 30 Baht per click. Based on our inquiry with the CEO of Konvy.com, we found that an expert IT technician costs around 40,000 Baht per month, while an average IT technician will only cost 25,000 to 30,000 Baht per month. Based on our inquiry with the Deputy Director of the hospital, the banner advertising package cost 12,500 Baht per month for 8 banners costing 1,563 Baht per unit per month.
Revenue and Costs Estimation
Profit & Loss Projection
Balance Sheet Projection
Changes in Shareholders’ Equity Projection
Cash-flow Projection
Monthly Cash-flow Projection
Weighted Average Cost of Capital Projection
The company is in Thailand's medical sector. From now on, we can obtain the beta version of all listed companies directly from a public site disclosed by the Stock Exchange of Thailand60, as shown in Table 9.13 Beta of comparable public companies in the medical sector. Because the beta of comparable leveraged companies in the stock market has different sizes, we therefore weight them by their equity factor based on their size before proportioning their leveraged beta. We assumed that the individual beta of publicly traded companies uses leverage in some way. However, our company is a non-leveraged company and therefore we had to reduce this beta going forward.
Project Evaluation
Based on the net present value equation, the internal rate of return (IRR) looks for the rate of return when NPV is zero, to put all projects on the same basis and compare it with rate of return. We calculated that the internal rate of return exceeded the weighted cost of capital as shown in Table 9.17 Internal rate of return of the project. We calculated the payback period as shown in Table 9.18 Payback period of the project.
Project Valuation
The payback period shows how long it takes to recover the original investment. Note that since the company only has intangible assets with no additional preemptive significant capital investment, we assumed that net operating cash flow is equal to free cash flow.
Financial Ratios Analysis
- Profitability Ratios
- Efficiency Ratios
- Liquidity Ratios
- Debt Ratios
Overall, the company has higher profitability than the industry average59, except for Du Pont's EBIT Margin, as the company's PSA costs are higher due to high advertising costs, as shown in Table 9.20 Profitability Ratios. Higher efficiency than the industry59 was due to lower assets due to outsourcing, while a better cash conversion cycle resulted from our revenue prepayment policy, as shown in Table 9.21 Efficiency Ratios. The company is an unleveraged company with a policy of paying revenues in advance, which makes the company highly liquid as an industry59, as shown in Table 9.22 Liquidity Ratios.
Sensitivity Analysis
RISK MANAGEMENT
- Market Risk
- Financial & Liquidity Risk
- Credit Risk
- Operational Risk
- Strategic Risk
The community will consist of performing activities together based on the result of our survey as shown in Figure 10.1 Activities. Therefore, we will further operate an online market specializing in products for the elderly such as one of the products we approached during the Elderly Fair July 2016 as shown in Figure 10.2 Salt meter for hypertension or sensor socks that fit and can track the heart rate of the elderly in order for their children to to know if their parents are still fine as shown in Figure 10.3 Sensor socks. In summary, our marketing plan for risk reduction is as shown in Figure 10.4 Ansoff for Revenue Channel Expansion.
BIBLIOGRAPHY
Retrieved from IT Nake website: itdnake.com/news/facebook.html29 Centers for Medicare & Medicaid Services. Retrieved from: https://www.etda.or.th/publishing-detail/thailand-internet-user-profile-2015-eng.html48. Retrieved from: ey.com/GL/en/Issues/Business-environment/ey-megatrends-that-will-shape-our-future1.
