Completely agree that RTR has created a unique business and had done so by carefully aligning its business and operating models. I have been a long time user of RTR and one of the most interesting thing to me is how the company has refined its operating model as the company has scaled while still staying true to its overarching business model. For instance, when RTR added brick-and-mortar stores, the company had to transition away from an online-only model, and did so while increasing customer loyalty. I will be interested to see what operational changes they make going forward as customers and rentals continue to increase.
Great post Pia! I had not heard about One Medical Group before, but it sounds like a very interesting model. The business model definitely addresses pain points of many patients, and its patient-centric business model is picks up on one of the key trends within the healthcare market today. I do, however, agree with Lynn in that the lower than average visits per day is concerning for revenue purposes, so I would be interested to see the cost breakdown. On the other hand, I can see how their reliance on technology will drive large amounts of cost savings and also differentiate them amongst competitors going forward.
Great post Jason! Valeant’s business model is interesting and certainly creates a way for them to play in the pharmaceutical space without investing in the necessary capital requirements that other manufacturers do. One of my main concerns is whether the acquisition strategy is sustainable for the long term and if they will be able to continue to source value-add drugs. As noted above there are a number of reasons why this may be the case, but one specific situation I could envision is that as pharmaceutical companies see the success of Valeant’s business model, they may hold on to their drugs in development longer, or pursue a similar strategy within their own organizations.