Giant Foods Case Analysis Essay

1490 WordsMar 21, 20116 Pages
Case Analysis of Giant Foods. Introduction: This case involves convergent technologies, a blending of traditional and cutting-edge business models and an alliance between an established pharmaceutical provider and a fledgling, Information Technology based, Drug marketing firm. Together, these two companies endeavored to create a patient education and prescription drug compliance program by deploying the deep well of customer data acquired by Giant Foods and the proprietary software of Elensys Care services, Inc. Elensys uses information from Giants pharmacy to send personalized letters, written on pharmacy letterhead but often paid for by pharmaceutical companies, that remind customers to refill prescriptions and pitch new products to…show more content…
In an Internet post, Elensys describes itself as "the leader in patient behavior modification programs." Interest in the company has soared, in part because so many people fail to take medicine properly and most chains don't have the technical wherewithal to track customers as precisely as Elensys, Rubin said. Up to half of all patients who should routinely take medicine for such ailments as hypertension or high cholesterol quit prematurely, he said. "It's the primary reason for our existence." Much of the cost of the analysis and mailings is offset by payments from drug manufacturers, who contract with pharmacies for the right to mail information to individual customers. Among other things, Rubin said, that material could include suggestions that customers switch from one drug to another. THE PROBLEM: In addition to the customer backlash from this program, many legal issues become prescient due to the ill-defined nature of privacy laws. “In a marketing practice that some experts say raises new questions about medical privacy, several large drug store chains and "thousands" of independent pharmacies have been providing confidential patient information to a Massachusetts database company that profiles and targets patients who don't refill prescriptions. The Washington Post reports

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