The Hungry for Health Games: Aligning Strategy and Competitive Advantage
Jahani and Associates analyzed over 200 M&A transactions and equity investments in digital health from 2013 to 2016. We mapped a selection of these companies onto a 4-quadrant plane to understand their natural differentiators. We considered both the scope of care delivery (for example an urgent care company vs a software analytics company) and the size of the company’s financials and number of employees.
Quadrant 1: Social Players
These companies typically have a large customer base, but are relatively lean due the simplicity of their products. These are socially themed companies like Fitness Keeper and bWell.
Quadrant 2: Analytic Leaders
These are software dominated companies who built business by providing automation, simplicity, and streamlining the data rich and complex USA healthcare ecosystem.
Quadrant 3: Agile Players
Our research indicates these companies are in the process of competing to transition to quadrant 4. They have strong customer relationships and are starting to scale.
Quadrant 4: Tomorrow’s Healthcare Providers (THP)
THPs are the dominant players of today and tomorrow. These are companies that proven a ability to scale, are generally profitable, and have strong brands. They are challenged to increase their competitive advantage by generating new innovative digital health products or by acquiring other innovative companies.
Jahani and Associates works with digital health companies to identify, develop, and implement their competitive advantage empowered by intangible assets.
You could also be interested in our article – Part 2: Developing Intangibles in Ad Tech M&A Value
Also you can read our article: Identify, Develop, and Implement Intangible Assets to Maximize Your Value