20

BUSINESS
REPORT

20
 NETMEDS
NetMeds is an online pharmacy
that allows users to buy
prescription drugs, OTC medicines
and healthcare
products.Netmeds's
headquarters is in Chennai, Tamil
Nadu. Netmeds has a revenue of
$1.5M, and 325 employees.
Netmeds has received a total of
$134.2M in
funding. Netmeds's main
competitors are Medlife, 1mg and
PharmEasy.

04
 NETMEDS
You open a shop
i.e. a physical store and end up increasing overheads and thus need
to sell medicines at MRP or just at 5% discount on MRP. However you
setup an online or phone or tele calling portal (One time cost)
employ staff and now procure from the same manufacturer by bypassing
some levels of the supply chain but cater all over the nation (>
100 crore people) through just one shop at the cost of 5 physical
stores
.
You will end up saving a lot of overheads. Often margins in medicines range from 5% -
50% and in some cases it is even >100%.Netmeds saves its overheads, invests in distribution ch
by partnering through delivery agencies, It is able to reduce its expense to run a thousand
of stores around the country and is able to save all the expenditure on overheads.
It thus provides medicines at deep discounts and still earns more than any physical chemist.
The retail sector has always been lucrative as there is no need to work on credit
period to customers and recovery expenses as everything is settled immediately.

Netmeds procures
from the same manufacturers and sells to the customers at discounted rates thereby sharing w
them some tiny portion of its savings in overheads.
Also it is able to get a database of diseases in different areas locations and at different periods
and times and the medicines suited to people in those areas.
These databases
can be monetized (Data is the new oil and Indians are spilling it
around freely if they just get something at discount or for free) and
also be used for cost reduction and procurement planning.
This is same for
all major online pharmacies like Medlife, Netmeds and others.
 Intellectual Property
Human Resource Cost
Facilities
Outsourcing costs

Their principle cost included is in the structure of the maintainence of the licensed innovation
in the association.
I.e the maintainance cost engaged with the site

Cost associated with advancement and maintainance of HR and the business turnover costs
which likewise incorporates staffs,salaries and so on

The Costs involved in maintainance of facilities which is considered to be essential for the
physical existence of the organisation for ex:Buildings,data centres etc

This company involves outsourcing to the other BPO organisations which offer them
customer support and IS services

A REVENUE STREAM CAN BELONG TO ONE OF THE

FOLLOWING REVENUE MODELS,

TRANSACTION-BASED REVENUE: MADE FROM

CUSTOMERS WHO MAKE A ONE-TIME PAYMENT
RECURRING REVENUE: MADE FROM ONGOING
PAYMENTS FOR CONTINUING SERVICES OR POST-SALE
SERVICES
The Revenue stream in this case involves tranasaction based revenue
as the company doesnt perform as equal to the companies like
practo as they follow a simple marketing and business model.This
involves only Transaction based revenue primarly as the company
involves in only transaction based models
 PLATFORM/ NETWORK: CREATING AND MAINTAINING
PLATFORMS
THE KEY ACTIVITY IN WHICH THE ORGANISATION
INVOLVES IS THAT THE ORGANISATION IT DOES NOT
INVOLVE IN MANUFACTURING OR PRODUCTION
PROCESSES,RATHER IT JUST ACTS AS A PLATFORM WHERE
THE CONSUMERS COULD PROCURE MATERIALS.
THIS DOES ALSO SEEMS TO BE A PROBLEM SOLVING
PLATFORM WHERE THE PROBLEMS OF HIGH COST
MEDICINES ARE REDUCED AND THE CHANCES FOR THE
MEDICINES BEING FAKE IS MINIMISED TO THE LARGER
EXTENT.

TYPES OF PARTNERSHIPS ARE

STRATEGIC ALLIANCE: PARTNERSHIP BETWEEN NON-

COMPETITORSCOOPETITION: STRATEGIC PARTNERSHIP
BETWEEN PARTNERS JOINT VENTURES: PARTNERS
DEVELOPING A NEW BUSINESSBUYER-SUPPLIER
RELATIONSHIPS: ENSURE RELIABLE SUPPLIES
 The Above mentioned image involves strategic alliances and
acquisitions of companies which are considered competitive and
also used for obtaining an increase in marketshare by takeovers and
acquisitions of such type.

The Customer Segment:

The Customer Segmentation of the company is considered to be not
a too complex structure as they only focus on a Mass customer
segment where there isnt a part of a niche in it and thus is
considered to be involved only with a single customer stakeholders
where there are only endcustomers involved and thus there is no
involvement of doctors or labs etc because they arent a company
which provide doctor consultation or something of such time as they
are just involved as a B to C platform such as a swiggy for medicine.

Key Resources:
The list down which key resources or the main inputs
you need to carry out your key activities in order to create your value
proposition. 

There are several types of key resources and they are 

Human (employees)Financial (cash, lines of credit, etc.)Intellectual
(brand, patents, IP, copyright) Physical (equipment, inventory,
buildings)
 Cost Structure:
The Cost structure of the company involves
1.Intellectual Property Costs: As this is a SAAS platform this definitely
requires costs which are in relation to the app and the websites
2.Physical Asset Maintainance Costs;As there is a requirement for
maintainece such as rent
3.Human Resource Costs: It involves commissions,staff
salaries,bonusses etc
4.Financial Cost & Misc:Such as Taxes and Cost of capital and debt
raising etc .
But there is no strain for this company as compared to companies
like practo as their opertaions are bound.
THANKYU