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In Services development
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It helps to have decided where you are heading and where it is possible to go. Business models can often help with thinking such things through as part of your planning, by offering a structured process to work through.
For example, Alison Roberts et al developed The Pharmacy Viability Matrix, which categorises pharmacy according to one of four strategic options.1
Two characteristics define each option:
- Market focus within a community – local or extended
- Product/service choice available to customers – narrow or broad.
Each option assumes the same core pharmacy product and service offering, but with the choice to localise or expand the community base, or to provide a narrow or broad product and/or service offering. To enhance pharmacy sales, the business needs to decide in which competitive sector it wishes to operate.
The four possible business models are:
- Traditional pharmacy – neighbourhood-based, narrow product/service choice
- Expanded pharmacy – neighbourhood-based, broad product/service offering
- Focused speciality pharmacy – wider customer base, with specialised product/service choice
- Multispeciality pharmacy – has a wide customer base and a broad product/service offering.
The matrix simply offers a way to consider differentiating your pharmacy from the traditional offering. Pharmacy strategies to enhance turnover could include increased specialisation.
For example:
- Develop specific health zones (e.g. weight management or smoking cessation) to attract current and new customers. These zones should be distinct and include products, accessories, information and linked services
- Connect dispensary to front of store by recommending products (e.g. dietary supplements) for patients with specific health conditions
- Create a focused health product selection with signage (e.g. for stress, arthritis, digestion and women’s health). As dispensary margins reduce, it is essential to create powerful frontof- store areas. This allows customers to take some control of their health by providing clear solutions for their ailments
- Connect your consultation room with services and advice. Communicate the presence and purpose of the consultation room (e.g. private appointments and services). Pharmacies install consultation rooms, yet many customers do not understand their purpose
- Create the pharmacy as a ‘healthcare destination’, providing a range of products and services that are crucial to patient health and your market. This also requires you to identify clearly what you will choose not to provide.
