Main Product/ Service

• MedGrocer is an online e-pharmacy that allows

customers to order medicines online and have these
medicines delivered directly to them.

• All medicines are FDA-certified, and transactions are

verified by a licensed pharmacist. In addition to serving
individuals, MedGrocer also provides medicines for the
clinics of their corporate clients.
 Company Background
• A start-up by Wellbridge Health
Incorporated founded by Jerome Uy.

• Ayala Corp. through Ayala Healthcare

Holdings, Inc. (AC Health) invests in
MedGrocer in February 2017.
 Why the investment by Ayala?
• AC Health said the investment was
part of the company’s strategy to
increase accessibility and
affordability in healthcare.

• AC Health CEO Paolo F. Borromeo

said the investment fit well with the
company’s pharmacy and health
aspirations.

• In its part, MedGrocer’s founder and

CEO Jerome Uy said both
companies share the same
aspirations of making medicine
buying more convenient.
 How does MedGrocer work?
• https://www.youtube.com/watch?v=djoL5J
KFTRY
Competition
 Competition
Delivery Time Next business day Within 4 hours Within 3 hours; cutoff Next business day
at 6pm but with cutoff at
3:30pm.

Outside MM – 3-4
days
Delivery Fee P45 within MM Free if order is P1,000 Free if order is P1,000 Free if within
P180 outside MM or higher or higher Parañaque.
P50 if order is below P99 if order is below
P1,000 P1,000 and within MM. P50-200 in other
Additional P160 for P149 if order is below cities nationwide
freight charges if outside P1,000 and outside
MM MM.
P499 for bluky items
(8kg and above)

Accessibility Nationwide Nationwide Anywhere in PH but Nationwide

with exception of some
areas outside of their
logistics partners’
delivery zones.

Payment method Cash, Credit Card, Cash, Credit card, bank Cash, Credit Card Cash
GCash, Bank deposit deposit
 Business Model
E-tailer
Sells product directly to consumers or to
individual businesses.
 Provides convenient,low-cost shopping
24/7, offering large selections and
consumer choice
May or may not have existing physical
stores
 Revenue Model

Sales Revenue Model

Generates revenue by selling goods.
 Product Complement

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 Does the company’s product/s exhibit
network effect?
• Weak but with potential
Does the company compete in a winner take
all market?
1. The products (medicine) of all online
services are the same.
2. Difference comes down to the website
dynamics and terms of delivery.
3. Considering the consistent standards
across all services the more trafficked
website can claim the market.
 Does the company have economies of
scale?
1. Purchasing of med supplies
2. Increase in website traffic
3. Logistics
• MedGrocer exhibits product
lock-in via Customer Service
strategy

• By delivering greater
convenience to customers with
higher service levels and lower
prices.

• Incorporating this strategy

provides another platform for
customers to order and get
their medicines
24/7
• Low Switching Costs for MedGrocer

• Moving to its competitors would be easy

since the current market is not yet used to
ordering their medicines via on-line
• Majority of the customer base has not yet
adapted to ordering their medicines on-line.
• The service needs to be popular enough for the
majority to follow the trend
Critical Dynamics of Innovation Diffusion

• Relative Advantage – the current platform used

by MedGrocer provides customer with ease via
the innovation of ordering and delivering their
medicines

• Trialability – customers can order their

medicines with MedGrocer at no
additional/subscription cost. They can freely
order and not be tied to it for a given time period.