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Flevy Management Insights Case Study
Telehealth Expansion Strategy for Ambulatory Health Care Services


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Consider this scenario: A leading provider of ambulatory health care services is at a critical juncture with its product launch strategy, focusing on expanding its telehealth services.

Facing a 20% decrease in patient engagement due to the convenience of competing telehealth options and a 15% rise in operational costs, the organization grapples with external challenges including regulatory changes and evolving patient expectations. Internally, the adoption of digital health technologies has been slow, affecting the provider’s competitiveness and market position. The primary strategic objective is to enhance patient care and operational efficiency through a comprehensive telehealth expansion.



The ambulatory health care services sector is experiencing an unprecedented transformation, driven by rapid technological advancements and changing patient expectations. The integration of telehealth services has become a critical component for providers aiming to improve access, reduce costs, and enhance patient satisfaction. A closer look into the organization's current predicament reveals that inadequate technological infrastructure and resistance to change among staff may be impeding its ability to implement an effective product launch strategy for its telehealth services.

Industry Analysis

The ambulatory health care services industry is witnessing significant growth, fueled by advancements in medical technology and an increasing shift towards outpatient care.

To understand the competitive landscape, let's delve into the primary forces shaping the industry:

  • Internal Rivalry: High, as numerous providers offer similar services, leading to a competitive market environment.
  • Supplier Power: Moderate, with a diverse range of suppliers providing medical equipment and technology solutions.
  • Buyer Power: High, due to patients increasingly seeking convenient and cost-effective health care options.
  • Threat of New Entrants: Moderate, given the regulatory barriers and significant investments required to enter the market.
  • Threat of Substitutes: High, with alternative health care delivery models, like telehealth, gaining popularity.

Emerging trends in the industry include the rapid adoption of telehealth services and a growing emphasis on patient-centric care. These shifts are leading to major changes in industry dynamics, including:

  • Increased competition from digital-first health care providers, presenting both a challenge to traditional providers and an opportunity to innovate.
  • The integration of artificial intelligence and machine learning in health care delivery, offering the potential to improve care and operational efficiency but requiring significant investment.
  • A shift towards value-based care, emphasizing the importance of outcome-based patient care over service volume.

For a deeper analysis, take a look at these Industry Analysis best practices:

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Porter's Five Forces (26-slide PowerPoint deck)
Market Entry Strategy Toolkit (109-slide PowerPoint deck)
Strategic Analysis Model (Excel workbook)
Industry Analysis (63-slide PowerPoint deck)
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Internal Assessment

The organization has a strong foundation in providing quality ambulatory health care but faces significant challenges in technology adoption and process efficiency.

A PESTLE Analysis highlights that regulatory changes, technological advancements, and evolving patient expectations are key external factors impacting the organization. These elements underscore the urgency for the provider to adapt and embrace digital health solutions.

A Core Competencies Analysis reveals that the organization excels in patient care and has established a strong reputation in its local market. However, it lacks in digital innovation and telehealth service delivery, areas critical for future growth and competitiveness.

A Distinctive Capabilities Analysis indicates that while the organization has potential for high-quality telehealth services, it must bridge gaps in digital infrastructure and staff training to fully leverage this capability.

Strategic Initiatives

Based on the findings from the industry analysis and internal assessment, the leadership team has outlined the following strategic initiatives over the next 18 months to address these challenges:

  • Accelerated Telehealth Platform Development: Launch an integrated telehealth platform to offer remote consultations and patient monitoring. This initiative aims to improve patient access and satisfaction, creating value through increased engagement and care continuity. It requires investments in digital infrastructure and partnerships with technology providers.
  • Staff Training and Change Management: Implement comprehensive training programs for staff on telehealth technologies and digital patient engagement strategies. The goal is to enhance internal capabilities and reduce resistance to new technologies, ensuring the successful adoption and implementation of telehealth services. Resources needed include training materials, expert consultants, and dedicated time for staff development.
  • Market Expansion Through Strategic Partnerships: Formulate partnerships with technology companies and other health care providers to expand the telehealth service offerings. These collaborations intend to broaden the market reach and enhance service capabilities, driving revenue growth. Necessary resources include a dedicated team for partnership management and negotiation.

Product Launch Strategy Implementation KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Efficiency is doing better what is already being done.
     – Peter Drucker

  • Telehealth Service Adoption Rate: Measures the percentage of patients using the new telehealth platform, indicating the initiative's market acceptance.
  • Patient Satisfaction Scores: Tracks patient feedback on telehealth services, reflecting the quality and effectiveness of care delivery.
  • Operational Efficiency Gains: Assesses improvements in process efficiency and cost savings as a result of telehealth implementation.

Monitoring these KPIs provides insights into the effectiveness of the telehealth expansion strategy, highlighting areas of success and opportunities for further improvement. It also informs decision-making on resource allocation and strategic adjustments.

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Product Launch Strategy Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Product Launch Strategy. These resources below were developed by management consulting firms and Product Launch Strategy subject matter experts.

Product Launch Strategy Deliverables

These are a selection of deliverables across all the strategic initiatives.

  • Telehealth Platform Implementation Plan (PPT)
  • Staff Training and Development Program (PPT)
  • Strategic Partnership Framework (PPT)
  • Market Expansion Analysis (Excel)

Explore more Product Launch Strategy deliverables

Accelerated Telehealth Platform Development

The team applied the Blue Ocean Strategy framework to differentiate the telehealth platform in a crowded market. The Blue Ocean Strategy, originally proposed by W. Chan Kim and Renée Mauborgne, is designed to guide organizations towards creating uncontested market space and making the competition irrelevant. This framework was particularly relevant for developing a unique telehealth service that stands out from existing solutions. The organization took the following steps:

  • Conducted a comprehensive analysis of the current health care landscape to identify overserved and underserved areas in telehealth.
  • Engaged with patients and providers to uncover unmet needs and pain points with current telehealth options.
  • Developed a value innovation strategy that focused on simplicity, accessibility, and personalized care, areas identified as lacking in competitor offerings.

As a result of implementing the Blue Ocean Strategy, the organization successfully launched a telehealth platform that not only addressed gaps in the market but also introduced novel features that set a new standard for patient care and convenience. This strategic move significantly increased patient engagement and positioned the organization as a leader in innovative health care solutions.

Staff Training and Change Management

For the initiative focused on staff training and change management, the organization utilized the Kotter’s 8-Step Change Model. Developed by John Kotter, this framework provides a comprehensive approach for managing change and ensuring successful adoption of new practices. It was particularly useful for facilitating the transition to telehealth services among the staff, many of whom were accustomed to traditional in-person care models. The organization followed these steps:

  • Established a sense of urgency by sharing data on shifting patient preferences towards telehealth and the potential impact on the organization’s future.
  • Formed a guiding coalition of change champions from various departments to lead the initiative.
  • Developed a vision and strategy for the adoption of telehealth practices, ensuring it was clearly communicated to all staff members.
  • Empowered broad-based action by removing obstacles to change and enabling staff through training and support.

The application of Kotter’s 8-Step Change Model led to a smooth transition to telehealth practices within the organization. Staff resistance was minimized, and the adoption rate of telehealth services among providers significantly increased, enhancing the organization's capacity to meet patient needs effectively.

Market Expansion Through Strategic Partnerships

In pursuing market expansion through strategic partnerships, the organization leveraged the Ansoff Matrix to identify and evaluate growth opportunities. The Ansoff Matrix, a strategic planning tool that focuses on an organization's present and potential products and markets, was instrumental in guiding the decision-making process for expanding telehealth services. The organization implemented the framework as follows:

  • Assessed current market penetration with existing telehealth services and identified gaps and opportunities for deeper engagement.
  • Analyzed new market opportunities where telehealth services could be introduced, including underserved geographical locations and patient demographics.
  • Evaluated the potential for developing new telehealth services that could meet emerging health care needs not currently addressed by the market.
  • Explored diversification opportunities through partnerships with technology companies and other health care providers to offer a broader range of services.

By applying the Ansoff Matrix, the organization strategically expanded its telehealth services into new markets and demographics, significantly increasing its patient base and revenue. This approach also facilitated successful partnerships that enhanced the organization's service offerings and market competitiveness.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Launched a differentiated telehealth platform, increasing patient engagement by 25% through unique features focused on simplicity, accessibility, and personalized care.
  • Implemented Kotter’s 8-Step Change Model for staff training, resulting in an 80% adoption rate among providers for the new telehealth services.
  • Expanded market reach by entering two new geographical locations and engaging with previously underserved patient demographics, boosting patient base by 15%.
  • Formed strategic partnerships with three technology companies, enhancing the telehealth platform's capabilities and improving operational efficiency by 10%.
  • Reported a 20% improvement in patient satisfaction scores, reflecting higher quality and effectiveness of telehealth care delivery.

Evaluating the results of the telehealth expansion initiative reveals a mixed but overall positive outcome. The successful launch of a differentiated telehealth platform and the high adoption rate among providers are significant achievements, directly addressing the strategic objective to enhance patient care and operational efficiency. The increase in patient engagement and the expansion into new markets demonstrate the initiative's effectiveness in responding to competitive pressures and changing patient expectations. However, the results also highlight areas for improvement. The 10% improvement in operational efficiency, while notable, suggests there is room for further gains, possibly limited by the slower pace of digital infrastructure upgrades or incomplete staff buy-in. The strategic partnerships, although beneficial, may have underperformed in fully leveraging technology to drive down operational costs or innovate service delivery further. An alternative strategy focusing more on rapid technological adoption and a more aggressive digital marketing campaign might have accelerated market penetration and efficiency gains.

For next steps, it is recommended to continue investing in technology to further improve the telehealth platform, focusing on areas that can drive operational efficiency and patient satisfaction. Additionally, enhancing digital marketing efforts to better promote the platform's unique features can accelerate market penetration. A reassessment of current partnerships and exploration of new collaborations, especially with fintech companies for seamless payment solutions, could enhance the value proposition. Finally, ongoing staff training and engagement initiatives are crucial to maintain high adoption rates and adapt to evolving telehealth practices.

Source: Telehealth Expansion Strategy for Ambulatory Health Care Services, Flevy Management Insights, 2024

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