Med Net Case Essay

check to the table, MedNet is almost equal to the newspaper ad in terms of greet per atomic number 53 dollar of contribution. Marvel showed to be almost twice as expensive than MedNet.Situation with cholesterol.com is far more complicated. Case contains no culture on cholesterol.com ad effectiveness other than that most often recess type sites become first source for the newly diagnosed. However, mountain says that 85% of broad audience visit 3 or more sites to search their condition. Taking into account high trustworthiness of the MedNet.com it is reasonable to expect that 85% of cholesterol.com users lead also visit MedNet. Out of these 85%, 93% provideing visit MedNet again when medical information is call fored. Therefore, roughly 80% of cholesterol.com visitors entrust either switch or become regular MedNets visitors. primarily speaking cholesterol.com provide share almost all its visitor kitten with MedNet.I would advise Marhia to request sample ad effectiven ess inflection from cholesterol.com. From the tone of the case it seems like cholesterol.com kills disproportionally high premiums for their not so manifest competitive advantage. Chances are that cholesterol.com will prove less effective than MedNet.If cholesterol.com will prove to be more efficient and Windham will switch aside(predicate) from MedNet, the decision of future MedNet strategy will depend heavily on the competitive landscape and internal flexibility of the MedNet.In the first option, from the survey we know that 75% of MedNets audience will switch away once charge is introduced, so if 25% agrees to pay we would need to charge approximately $11.50 per visit per month to achieve same profitability of one million. $11.50 seems to be fairly reasonable number, but further elasticity explore will be needed.Second option doesnt solve the difficulty of flattening the advertising budgets, moreover, additional content will involve extra cost that MedNet wont be able to r ecoup.Third option will be very capital intensive, as it will take retentive time to accumulate enough corporate contracts to remain profitable, but will almost immediately cut off advertising income. MedNet will need to find extra liquidity to pursue this option.