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Kate Nihill
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I totally agree, Katherine. Your point on maintenance and replacement costs is spot on. I echo your concern about getting enough new customers to grow, but more than that, I worry about how you keep your customers.
Is being the lowest cost provider really enough of a customer promise? Does the $50-$100 customers save on a flight really create enough value to counter the potential value that’s destroyed when they are stuck at an airport for days? Will these customers really come back? Note this quote in a recent Travel & Leisure article which ranks Spirit as the worst airline for customer service: ““Worst airline in the world,” wrote one reader. “They leave you stranded when they cancel your flight, then basically tell you they don’t care. If they could figure out a way to charge for oxygen, they would do it. Used to fly them regularly but now I would pay more to avoid them.” (http://www.travelandleisure.com/slideshows/worlds-worst-airlines-customer-service/25
I understand that they are differentiating themselves on price and by not providing good customer service but I just question whether that is really a sustainable business model over the long-term.
This is very interesting!
A few comments on the services offered: You say that they are focused on providing services for minor medical conditions like ear infections, pink eye, sinus infections — but how can these really be diagnosed without a doctor physically looking at the patient? Couldn’t this lead to an over-prescription of antibiotics since often these conditions are just viral and will go away on their own in a few days? BUT if patients do need a prescription, then they would have to go to the store to pick it up anyways. I guess if you are, say, dealing with a sick child you could leave them at home with someone else while you go out to pick up the prescription but often the doctor’s visit is paired with getting the medicine right away. Have you thought how CVS Minute Clinic might be a competitor/potential collaborator? I know personally, it would be great to have this on-demand service but I’d love to have it complemented with an in-person option (like Minute Clinic) where you can be seen in person and pick up your prescription if necessary.
I’d also love to know more about the physicians they recruit. Are they limited to MDs or are they mostly staffing NPs and PAs?
All and all, it seems like a very important service that has great potential — especially for people in rural areas who do not have easy access to care.