Mednet Case Study Analysis

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Executive Summary: Founded in 2002, MedNet.com is an award-winning medical website that provides trusted, evidence based, consumer health information to its online visitors had been launched with three main goals: to provide scientifically based medical information to a nonprofessional consumer audience; to provide this information for free; and to generate profits from advertising sales. Majorly, trained journalists, doctors, faculty of prominent medical schools, news agencies and an active community of visitors developed the vividly presented content. Primarily, MedNet generated its income through its advertisers, mostly from Windham pharmaceuticals on a cost-per-thousand impressions (CPM) basis. By 2006, MedNet had 4.3 Million monthly visitors and generated $1 Million in profits. In the first quarter of 2007, MedNet started to face competition, from non-profit and governmental website, condition-specific websites, and search engine websites, for both visitors and advertisers and advertisers. The competitors such as Marvel search engine and Cholesterol.com not only flattened its audience growth but also followed pay-per-click advertising, in which the website provides the impressions for free and charge the advertisers only for click-throughs, presented the website content in many languages, and tailored health information to each visitor’s specifications. MedNet needs to re-evaluate its current business model and develop new strategies before Windham considers shifting its ad dollars to Marvel or Cholesterol.com. Analysis: Using the porter’s five forces analysis, Competitors: * Non profit and governmental websites * U.S. National Library of Medicine * World Health Organization * For-profit and condition-specific websites * Cholesterol.com * ClinicalTrails.com * Health space * Alternativehealth.com * Search

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