Mednet Analysis

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MedNet Case Analysis

Problem Definition
- MedNet.com could possibly lose Windham Pharmaceuticals, their biggest advertiser, to Cholesterol.com, which is a condition specific site.

- MedNet.com must decide whether to charge for advertising based only on click-through, keep its current pricing structure, or change its strategy all together.

- MedNet.com must decide how it will continue to generate revenue while addressing competitive challenges.

- MedNet.com may lose revenue because of Marvel’s new pricing structure.

Summary of Information
- MedNet.com’s biggest advertiser was asking to change the rules of advertising on MedNet.com, or risk losing all of their advertising to websites like Marvel.

- MedNet is facing competition for both visitors and advertisers from both for profit and not-for-profit websites. New competitors have flattened MedNet’s audience growth.

- In 2006 MedNet had met all of their goals generating $1 million in profits with 4.3 million monthly visitors, but in the last quarter they began to see their number flatten out as more competitors began to emerge.

- Marvel created a challenge for MedNet by charging for advertising based on a pay-per-click model (CTR).

- MedNet decided to generate revenue from advertisers by charging on a cost-per-thousand (CPM) basis, while Marvel decided to provide impressions for free and only charge advertisers for click-through.

- Bill Bishop and Heather Yates were able to convince Mahria Baker that Marvel could not bring Windham the same amount of sales as MedNet, but inadvertently made a case for websites like Cholesterol.com.

- MedNet.com was considering expanding their website to offer more services like treating site visitors more like patients, introducing alternative health, and developing employer websites in order to charge customers to make up any revenue because of advertisers.

- MedNet is at a crossroad with...
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