B usiness Model analysis for American National Specialty Pharmacy The Clayton Ch
ID: 373452 • Letter: B
Question
Business Model analysis for American National Specialty Pharmacy
The Clayton Christenson business model can be described in four parts.
Four parts:
1.Customer value proposition-
Pricing- The non-specialty drugs costs increasing 2 to 6 % and annually 10%. The special pharmacy cost $ 1 trillion a year. Spending on specialty drugs in 2012 in the United States was about $87 billion. Estimates suggest that it could quadruple by 2020, reaching about $400 billion or 9.1 percent of national health spending. Unit price growth is driving spending increases but utilization growth plays a strong role for certain therapies.
Payment Scheme – The payment scheme of the order of the drug is in bulk. Payment is made on the order. The half of the drugs are funded. They use a new payment model.
Type of Offering – They have more than 200 pharmacy drugs are available today. The offering of the drugs availability is on retail stores of the pharmacy.
Access option- They are easily available in the market as they are growing in trend.
2. Profit formula
Revenue Model- The Revenues surpassed $100 million and it is keep growing day by day.
Target Unit margin- Both increases in utilization and unit prices contribute to spending growth for specialty drugs. However, unit prices have been the primary driver of cost growth overall in recent years and continue to escalate.
3. Key resources
R & D – The research and development of the drugs are being the source of new generation of the drug. The R & D creates the new opportunities to enhance the business.
Manufacturing- Manufacturing of the pharmacy drugs are on the basis of the innovations in the pharmacy.
HR- The Human resources are increasing day by day. As the new technologies are increasing the more talents are required so the HR base is also increasing due to this reason.
Marketing- The marketing of the drugs is not much done by the company.
IT- The Information technology has changed the company business and bringing to the new heights.
4. Key processes
People – They have the largest base of employees in the country. The cost- and return-to-work results that we see with our employer group and insurance plan customers of all sizes are dramatically improved.
Technology- The technology has increasing day by day. As the enhancement of the technology have the revolution in the manufacturing of the drug.
Partnerships- They have the collaboration with the other companies for the distribution of the drug.
Channel- Specialty pharmaceuticals have been loosely defined as any drug that requires “high-touch” service in the forms of distribution, administration, or patient management — all factors that drive up costs for the purchaser or consumer. They require a refrigerated chain of distribution.
Explanation / Answer
Make a business model analysis for American National Specialty Pharmacy (not a real pharmacy).
ANSP Articles:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2706163/
http://www.unitedhealthgroup.com/~/media/UHG/PDF/2014/UNH-The-Growth-Of-Specialty-Pharmacy.ashx
-Use Clayton Christenson business model-
Four parts:
1. Customer value proposition
2. Profit formula
3. Key resources
4. Key processes
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