OSAICase VI: Oasis Medical
Objective: To understand the issues of place/distribution
Case Position Statement: If you were a venture capitalist, would you invest $400,000 for 40% of Oasis Medical (assuming you had the money)? Issues to Ponder: What would the preferred way to move these medical products from producer to consumer
I would not invest the money to Oasis Medical. Although there is a good distribution strategy for their products, lack of actual data for investors. Oasis had a good strategy to introduce their products through the hospital, this method provides customer the authority advice by the doctor. It can increase the brand reputation in the professional field. Oasis should use the zero-level channel to reach the consumers directly, in this case, door-to-door salesman, TV selling and direct mail are the methods could be adopted. Nowadays the internet selling is become the most important in the 0-level channel. Furthermore, as the industrial customer, hospital could get their product by their industrial distributors. It is the 1-level channel in the business to business environment. To move the products to consumer, the other important factor is the price, Oasis plan to using the low price high volume strategy for their quality products. Personally, I am not recommending Oasis to use the current price strategy, the reason is most consumers are willing to pay higher price for medical products for high quality. Higher price lead to higher quality and higher brand reputation. Oasis can also manufacturing some wood crutch and introduce in to the lower price market, with the good reputation, the wood crutch should occupy a good market share. There is another way to move the products to consumers, Oasis could provide their crutch to some famous people for free who need a pair of crutch. The famous intermediaries also will bring some potential consumers. In the really life, some people only need the crutch temporarily, for example the people are...
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