Report

Opportunity Assessment
Telehealth Business
THE BUFFETT GROUP - 2014

2 The Buffett Group
Table of Contents
Part A: Opportunity Assessment
04 Introduction
06 Best time ever for Telehealth
08 A big Market needs Innovation
10 Positive Growth Potential
PartB: Seizing the Opportunity
14 Products and Technology
17 Differentiation Strategy
25 Taget Customers
19 Partners and Allies
20 Financial Plan
25 Conclusion

3Business Opportunity Assessment

4 The Buffett Group
Part A
Opportunity Asessment

6 The Buffett Group
W
earable health monitoring
technology is drawing more
and more attention in the past
few years. While the smartphone re-
mains Americans’ device of choice, the
tech world is creating a future of wear-
able devices that promises to entertain
consumers, save their money and help
them live healthier lives. As wearable
technology becomes cheaper and eas-
ier to access, wearable devices can now
be deployed into various accessories
from bracelets, hats, necklaces, socks,
shoes, eyeglasses to wristwatches,
headphones and smartphones. These
devices and their associated apps will
become a part of consumers’ lives and
the health ecosystem.
The key technologies for designing
medical wearable device include Min-
iaturization, Intelligence, Networking,
Digitalization, and Standardization.
Through miniaturization, the physical
size as well as the power consumption
of the device can be essentially reduced,
thereby facilitating long-term monitor-
ing and popularizing its use. The intel-
ligence enables automatic diagnosis
and alerting. Networking is an essential
communication part of wearable de-
vice to deliver professional healthcare
services with high efficiency and high
quality remotely from the standpoint
of m-Health. And digitalization is neces-
sary for data analysis and storage after
the analog vital signals being acquired
in a digital form. Standardization will
ensure the performance evaluation
and interoperability of the wearable
healthcare devices.
The demand for wearable health mon-
itoring devices is skyrocketing, as wire-
less health technologies have become
especially popular in the last few years.
In fact, it is expected that by 2016, wear-
able health monitoring devices will ac-
count for 80% of wireless medical de-
vices. The key selling point for these
devices is the mobility of information
for consumers. Moreover, the accessi-
bility of mobile devices has increased
significantly within the past decade,
made it easier for users to access re-
al-time information anywhere.
After examining the promising trend
of wearable technology and the de-
mand of real-time health monitoring,
we came up with the idea of developing
wearable health monitoring devices.
Unlike traditional sports/fitness ones,
these devices allow users to customize
design online and select function pack-
age set from fitness bands that monitor
activity and sleep patterns to flexible
patches that can detect body tempera-
ture, heart rate, hydration level and
more as they want. They can produce
data that, often enabled with analytics,
can be used by consumers to manage
their health and by healthcare organi-
zations to improve care and potentially
reduce costs through systems such as
remote patient monitoring with emer-
gency alarming.
Introduction
... by 2016,
wearable
health moni-
toring devices
will account for
80% of wireless
medical devic-
es...

8 The Buffett Group
T
he market for telehealth is be-
ing driven by significant trends
in healthcare, population aging,
technology advancement and govern-
ment regulation. At the same time, out-
dated reimbursement policy, increased
availability of healthcare, and a short-
age of providers are eroding the barri-
ers to adoption.
An Increasing and Aging
Population
According to United Nations population
statistics, the world population grew
by 30%, or 1.6 billion people, between
1990 and 2010. The world population is
still steadily grow and reach 9.3 billion
by 2050 [1]. Significantly, the proportion
of older persons increases while that
of younger persons decreases. In the
more developed regions, 23 per cent of
the population is already aged 60 years
or over and that proportion is projected
to reach 32 per cent in 2050. In devel-
oped countries as a whole, the number
of older persons has already surpassed
the number of children (persons under
age 15), and by 2050 the number of old-
er persons in developed countries will
be nearly twice the number of children.
This aging population has increasing
incidence of chronic diseases including
arthritis, asthma, cancer, COPD, diabe-
tes and HIV/AIDS. Moreover, 80% occur
in low and middle income countries,
where most of the world’s population
lives [2].
Fewer Physician
Globally, the World Health Organization
(WHO) estimates a shortage of 4.3 mil-
lion physicians, nurses and other health
workers worldwide, especially in many
developing countries. Many developed
countries also experience physician
shortages, such as U.S., Canada, the
U.K., Australia, New Zealand, and Ger-
many.
The shortage of manpower in the
health sector from many different caus-
es, from limited numbers and capacity
of medical schools to low working con-
ditions in developing countries and ru-
ral areas.
The explosion of Mobile
Technology
In the last decade, mobile industry had
an impressive development, both in
the number of users and technology in-
volved. At the end of 2011, there were 6
billion mobile subscriptions, estimates
The International Telecommunication
Best time ever for Telehealth
... WHO esti-
mates a short-
age of 4.3 mil-
lion physicians,
nurses and
other health
workers world-
wide...
[1] Population Division Department of Economic and Social Affairs, “World Population Prospect, The
2012 Revision: Highlights and Advance Tables,” United Nations, New York, Working Paper No. ESA/P/
WP.228. 2013.
[2] “2014 Global health care outlook - Shared challenges, shared opportunities,” Delloite, 2014.
Wireless Health and Fitness, ABI Research

Union (2011). That is equivalent to 87
percent of the world population. And is
a huge increase from 5.4 billion in 2010
and 4.7 billion mobile subscriptions in
2009.
In addition to this, the availability of
wearable monitoring devices is increas-
ing rapidly. According to Juniper Re-
search, the market for wearable devic-
es is expected to grow to $1.5B in 2014
and $6B in 2016, up from just $800 mil-
lion in 2012.
The changes in govern-
ment’s regulations
One of the biggest driver for the growth
of teleheath is the Affordable Care Act
(Obamacare) on March 2010 – the first
successful major reform to healthcare
since Medicare in 1965 [1]. This Act em-
phasize on improving efficiencies and
reducing costs through the use of tech-
nology. As the leading economy in the
world, this movement of Us Govern-
ment will certainty open up new mar-
kets for Telehealth, not only in United
States but also at a global scale.
In Europe, telehealth adoption is ex-
pected to gather pace as more govern-
ments seek innovative ways to manage
budgetary pressures, amidst ongoing
economic difficulties. According to a re-
port by Deloitte, estimated spending on
telehealth in Europe is 170 m€ in 2010.
This figure is expected to increase to
353 m€ in 2015 [2].
Technology advancement
Previously, the application of technolo-
gy in the field of Telehealth is relatively
difficult and not really integrated, but
now, with a series of new advancements
in the field of telecommunications has
enable new smart and easily accessi-
ble applications. It is the progress of
microprocessors, micro-sensors, the
advancement of energy-saving capa-
bilities of the mobile device with high
bandwidth. Currently, the progress of
wireless connectivity has allowed new
development in the field of healthcare.
In particular, the concept of the Inter-
net of Things, with advantages that
can connect large numbers of devices
together, providing real-time informa-
tion in real-time easily and cost efficient
-emerged as one of the very promising
technology. Besides, this is one of the
new trend, towards wearable devices
and mobile devices. A key expectation
of IOT devices is that they allow for con-
tinuous monitoring and connected re-
al-time data transmission, ideally with
real-time feedback and personalized
recommendations.
... estimated
spending on
telehealth
in Europe is
expected to
increase to
353 m€ in
2015...
[1] Huntington, WV and Covington, LA and Center, PP and Covington, LA and Manchikanti, L,
“Patient Protection and Affordable Care Act of 2010: Reforming the health care reform for the new
decade,” Pain Physician, vol. 14, no. 1, pp. E35-E67, 2011.
[2] Deloitte Life Sciences, “Primary Care: Working Differently-Telecare And Telehealth-A Game Changer
For Health And Social Care,” Deloitte, Research Report 2012.

10 The Buffett Group
Market Size
Wearable devices create new ways for
businesses to connect with customers
and employees – among them wellness,
healthcare and medical categories are
forecasted as the top applications. Ac-
cording to the Institute for Health Stud-
ies, roughly 50 million wearable units
will be sold in 2014, and more than 180
million are predicted to sell in 2018.
The market is young and fast growing.
A report from On World, predicts that in
2017, 515 million sensors for wearable,
implantable or mobile health and fit-
ness devices will be shipped globally—
up from 107 million in 2012. Between
2012 and 2017, wearable health and
fitness device shipments will increase
by 552% and make up over 80% of the
mobile sensing health and fitness de-
vice market at this time [1].
There is also a large profitable space
in terms of user-customization. The
consultancy’s Health Research Insti-
tute outlined what is seen as the top
10 issues for 2015, based on a survey
of 1,000 consumers and industry lead-
ers. According to the report, “Do-it-
yourself healthcare” is the most striking
one. Customers are ready to embrace
a dramatic expansion of the high-tech,
personal healthcare kit. Wearable
healthcare, internetworked devices and
mobile apps will become increasingly
valuable.
Competition
Although the market for telehealth ser-
vices is not considered as a broad mar-
ket, many companies is already inter-
ested in this field, which could increase
its competitiveness. Among countries,
US emerged as one of the leading mar-
ket with nearly 100 telehealth software
and service vendors operating in 2013,
in which nearly 45% of the company
have less than 40 employee [2].
Telehealth, with its nature will attract
many manufacturers from different in-
dustries: from security, wireless carrier,
remote health and activity monitoring,
fitness technology tracking to mobile
manufacturer and software companies.
AMD, Philips, Second Opinion Telemed-
icine, Bosch and LifeWatch are among
many vendors competing in this mar-
ket.
In this market, current products and
services could be categorized in to 3
types: Software platform, Fitness tracker
and Remote Patient Monitoring.
A big Market needs Innovation
... between
2012 and 2017,
wearable
health and
fitness device
shipments will
increase by
552% and make
up over 80%
of the mobile
sensing health
and fitness de-
vice market at
this time...
[1] “Mobile Sensing Health & Wellness” , On World, Q2 2013.
[2] Ankur Gupta, “The US Telemedicine Market Outlook To 2018,” Ken Research, Market Research Report
2014.

... seven in
ten US adults
say they track
at least one
health
indicator...
Market needs for mobile
health care service
It is clear that when the benefits of mo-
bile computing is becoming more ap-
parent and more accessible, the level of
users’ interest has also increased, even
in the medical applications. The use of
technology in general and the use of
mobile communication in healthcare
industry can bring some undeniable
benefits, such as:
- Significantly improve an individual’s
quality of life by allowing patients to
maintain independence, prevent com-
plications, and minimize personal costs.
- Helps patients and their family mem-
bers feel comfort knowing that they are
being monitored and will be supported
if a problem arises.
- Reducing the pressure on healthcare
systems in terms of number of emer-
gency department visits, hospitaliza-
tions, and duration of hospital stays.
- Prevent health risks and accident, es-
pecially for those who live alone. More
than 50 percent of all falls occur in the
home. The CDC reports that about
20,000 people age 65 and older die
each year of falls.
On the user’s side, they also pay more
attention on remote health monitoring
solutions. According to Pew Internet
Research, who last year carried out the
first US national survey on self-tracking,
seven in ten US adults say they track at
least one health indicator.
Market Threats and Chal-
lenge
Healthcare devices are among the
products which may take long and ex-
pensive R&D and market approval pro-
cess. Multiple analyses, both technical
and clinical, are required for new proce-
dure and technology to be introduced
to the market. Besides that, significant
attraction or ignorance, is the pressure
which every company has to overcome
due to the raising number of competi-
tors in a growing technology trend.
Every solutions collecting medical data
are facing privacy and security concern.
Sensitive health records if leak out
side can be used as a tool for various
crimes like personal life harassment,
or identity fraud. In 2012, the price for
each medical profile is already $50 [2].
Worse, the number of buyers willing to
pay for these data are growing, giving
motivation for hackers to attack these
systems. One scandal happens can eas-
ily erase the whole firm from the mar-
ket.
[1] Susannah Fox and Maeve Duggan, “Tracking for Health,” Pew Research Center’s Internet &
American Life Project, Washington D.C., Report 2013.
[2] Jason Dearen, “The rising risk of electronic medical records“ (Online): http://www.smartplanet.
com/blog/pure-genius/the-rising-risk-of-electronic-medical-records/

A
s mentioned in the beginning
of this paper, develop mobile
device is a common trend for
healthcare industry. Two-thirds of
health IT executives indicate that the
use of mobile technologies combine
with advancement in networking solu-
tions will substantially or dramatically
impact the delivery of healthcare in the
future [1].
ABI Research has projected that by
2016, wearable wireless medical device
sales will reach more than 100 million
devices annually. The market for wear-
able sports and fitness-related mon-
itoring devices is projected to grow as
well, reaching 80 million device sales by
2016 [2]. This forecast is also confirmed
by a separate report by IMS Research,
which states that medical devices pur-
chased by consumers used to self-mon-
itor health conditions will account for
more than 80% of wireless devices in
2016 [3]. The proportion of wireless de-
vices used in managed telehealth pro-
grams is predicted to increase from 5%
in 2011 to 20% in 2016, according to the
study.
Wearable connected device revenues
will grow to more than $6 billion in
2018, according to new findings from
ABI Research. The survey tracked four
areas: sports, fitness and wellness;
home monitoring devices; remote pa-
tient monitoring; and professional (on-
site) healthcare.
Research and analysis firm GlobalDa-
ta expects the market to grow in value
from an estimated $0.5 billion in 2010
to over $8 billion by 2018, significantly
revolutionizing healthcare delivery and
management.
Owing to factors detailed above, the
global mobile health (mHealth) mar-
ket is estimated to reach $58.8 billion
by the end of 2020 at a CAGR of 32.3%
between 2013 and 2020. Blood Glucose
Meters market is projected to lead the
mHealth devices market followed by
cardiac monitoring devices during the
forecast period (2013 – 2020). Increas-
ing emphasis on preventive medication
is expected to drive the mHealth service
market. Monitoring services is expected
to take away major chunk of the market
with most of the revenue coming from
the developed regions.
Europe leads the regional market
landscape of the global mHealth mar-
ket followed by Asia Pacific and North
America. Furthermore, by 2020, Asia Pa-
cific will take away the lead from North
America, occupying more than 28.2%
of the market. The players profiled in
this report include: Philips healthcare,
Omron HealthCare Inc., Bayer Health-
care, LifeWatch, Cardionet Inc., Masimo
Corporation, Sanofie, Boston Scientific,
AT&T Inc., and Johnson & Johnson.
Positive growth potential
[1] “2nd Annual HIMSS Mobile Technology Survey,” HIMSS, Research Report 2012.
[2] “Wireless Health and Fitness,” ABI Research, Report 2011.
[3] “Wireless Opportunities in Health and Wellness Monitoring - 2012 Edition,” IMS Research,
Research Report 2012.

there will be 50 billion connected devices,
7 times the world’s population by 2020
80%80% of wearable devices sales by 2016
will support health monitoring
value of wearable devices sales by 2016
with CAGR of 32.3%
$58.8b
world wide spending on wearable technology
will grow13 times in 5 years
Source:
Wearable Technology Market Trends through 2018, Research and Markets
The Internet of Things, Cisco’s Internet Business Solutions Group
Wireless Health and Fitness, ABI Research

Part B
Opportunity Seizing

Products and Technology
O
ur solution consists of a wear-
able device with multiple sen-
sors, to measure various health
tracking metrics, including body tem-
perature, blood pressure, heart rate
and respiratory rate. The data is col-
lected real time, then can be processed
and viewed in a visualized form with a
mobile device application, or web ser-
vice using a registered account. User
can monitor his own data, as well as
allow the data monitored by his se-
lected caretakers. With the collected
data, the system can detect user health
condition problems like breath prob-
lem, fall down, heart attack, or uncon-
sciousness. Immediately when these
problems occur, the caretakers will re-
ceive notification in their smart phone
by SMS message or application notice,
about problem detail, location… Briefly,
all the actions user has to take when
using the device can be summarized in
two W: Wear the device and Watch the
information.
The technology ties with the solution
is the combination of prevalent sen-
Key Resources
Key Partners Key Acitivities
Open healthcare
data
Technical Expertise
EIT ICT Labs
Value Propositions Customer Relationship
Online community
After sale
services
Channels
Customer segments
Cost Structure
Personnel
Marketing
cost
Sensor development
Software applications
Revenue Streams
Freemium
Ads
People living in
remote areas
Travelers or
Explorers
Childrens
Business PartnersÕ
terminals
Healthcare
Websites
Development
Interaction experience
design
Competitive analysis
Local Service
providers
Electronic
stores
Hardware
Manufacturer
Outdoor sp-
orts Stores
Nursing
Home
Elderly People
Patients with
chronic disease
Full Detection
Alarming
Precise
Monitoring
... all the ac-
tions user has
to take when
using the
device can be
summarized in
two W: Wear
the device and
Watch the in-
formation ...
Our business canvas:

... Only in the
U.S, the future
revenue of
digital health-
care services
is estimated to
exceed $5.7 bil-
lion in 2015 ...
sors, including GPS receiver for location
tracking, gyroscope and accelerometer
to detect falling, and special sensors
to measure blood pressure, heart rate
and respiratory rate. These sensors are
widely implemented in various in mo-
bile devices nowadays. To deliver the
data, the wearable device also takes
advantages of multiple data transmis-
sion methods: SMS, Bluetooth, 3G/4G
and Wifi connection. The data received
then stored in our cloud-based server
which can be accessed at every inter-
net-connected location, while preserve
sufficient security requirements.
All of the technologies mentioned above
have been applied in different success-
ful products these days. Sensors are
popular and have been proved in their
capability of transmitting reliable data
with low energy consumption. Software
platforms working with sensor data are
also available. Since the infrastructure
has already developed, the cost for
manufacturing will be at a reasonable
level, or talking straight, it will be cheap.
According to statistics in 2013, the aver-
age price for a sensor is only $0.55. Ac-
celerometer and gyroscope, two among
the sensors included in the solution
cost only less than $0.9 each [1]. Our
solution will use better sensors but the
price is not much higher. Low cost in
production results in acceptable price,
thus make it easier to reach customers.
Our products make use of two trending
and potential technology: Internet of
Things, Healthcare & medical applica-
tions. The Internet of Things connects
not only computers, mobile phones,
but every consumer objects or equip-
ment. These connections enable new
possibilities of information gathering,
management methods and services. An
Equity Research at Goldman Sachs fore-
casts, the Internet of Things will con-
nect around 28 billion devices around
the world, from as small as a bracelet
to as big as a car [2]. The incoming of
the Internet of Things encourages the
birth of various trends in technology,
for example, the rise of Healthcare and
Medical applications. Using smart per-
sonal devices, these solutions allow an
individual to take an active position in
self health management, receive sug-
gestion and warning without the aid of
physicians. Only in the U.S, the future
revenue of digital healthcare services is
estimated to exceed $5.7 billion in 2015,
compared with $1.7 billion in 2010. Sta-
tistics presented there are more than
17,000 mobile health applications, serv-
ing a large amount of users worldwide,
which is calculated to exceed 500 mil-
lion in 2015 [3].
[1] James Carbone. (2013, December) Expect Sensor Prices to Fall. [Online]. http://www.digikey.com/
en/articles/techzone/2013/dec/expect-sensor-prices-to-fall
[2] Simona Jankowsk (2014, September) The Internet of Things: Making sense of the next mega-trend,
Goldman Sachs. [Online]. http://www.goldmansachs.com/our-thinking/outlook/internet-of-things/
[3] Sonia Kolesnikov-Jessop, “Do-It-Yourself Health Care With Smartphones,” The New York Times,
Singapore, Technology and Innovation Report 2011.

... current solu-
tions have the
same draw-
backs in Secu-
rity, Interop-
erability and
Usability ...
T
he similar products compare to
our solution are wearable fitness
tracking devices, health monitor-
ing devices, and health applications.
Among health tracking device manufac-
turers, there is Misfit, an U.S company
who produces tracking button which
can be attached anywhere in the body.
Their latest product, Misfit Shine, can
track steps, calorie burned, speed and
sleep patterns. Misfit is a great demon-
stration of the possibility of combining
the sensors into a small, fashionable
wearable device. Among health moni-
toring devices, Phillips has already suc-
ceeded with their product named Life-
line. It is a falling detector, and an alert
button in a pendant style, which also
has the ability of automatically placing
an emergency call when the fallen user
can not push the button himself. With
health monitoring applications, one of
the latest app which gain interest from
the public is Health app from Apple.
Released along with the new IOS 8,
the app can show the statistics of user
health condition by day, month or year.
This app also can synchronize data with
other applications. However, user must
enter the data to the app manually
which made a significant drawback for
Health.
Most of existing healthcare solutions
like mentioned above have the same
drawbacks:
Security: The biggest problem in
healthcare relative to other industries
seems to be with mobile device securi-
ty. Since revealing sensitive information
is part of these services, it is a big con-
cern.
Interoperability: Compatibility issues
will be an important issue in the use of
medical products. It would be trouble-
some if a hospital cannot use the full
features of the monitor device just be-
cause they don’t have appropriate de-
vices.
Usability: Integrated solutions com-
bine both hardware and software is
still limited. There is a paradox at the
healthcare solution market. The profes-
sional solutions are at high preciseness,
but expensive, ugly, big, and not user
friendly. Well-designed and fashionable
devices either have limited medical ap-
plications or low accurate result.
Our solution is the combination of all
solutions mentioned, in a compact size,
automatic, convenience with minimized
interactions. Our device is a highly pre-
cise monitoring device, but much sim-
pler compare to solutions currently
used in hospital. User-friendly opera-
tion combine with well-designed and
customizable appearance is our main
product strategy. Moreover, we will
provide free device since the compact
sensors is quite cheap to produce. We
will gain revenue by applying various
subscription plans.
Differentiation strategy

A
s the product is designed for re-
cording health status and per-
sonal emergency response, we
aim our target customers at those who
have need to keep track of their health
data or safety conditions. According to
the different core functions a product
may have, our target customers can be
further divided as follows:
Patients with chronic or critical dis-
ease. They can be well aware of their
healthy condition or morbid state
through our devices, and it also can be
used for medical record and emergen-
cy response.
Old people especially those who live
alone. Old people relatively have weak-
er health conditions, so they may also
have the need for health monitoring
and emergency response.
18-30 age group pregnant female or
those who have little children. Both
pregnant women and little children are
often weak at self-protection.
Travelers and explorers. As they often
go to extreme environments or remote
area, a wearable, convenient health
monitoring device would help them a
lot to track their health condition and
send SOS in case of emergency.
Target Customers

Partners and allies
T
he following organizations can be
the potential business partners
for our startups:
Telecommunication service provid-
ers: Since we have the functions de-
pendent on SMS or 3G/4G services, we
need to collaborate with telecommuni-
cation companies.
Hardware manufacturers: Precise
monitoring is a key value of our prod-
uct. It is important for us to find out
excellent manufacturers. We are going
to work with hardware manufacturers
to improve the performance of sever-
al kinds of sensors. In the meantime,
these manufacturers would be recog-
nized by the quality of their goods.
Electronic stores: We can cooperate
with them to sell our product in their
stores. They can be our marketing chan-
nel, and we believe we can attract more
customers for them due to our quality.
Sport equipment stores: Our device
could send out the information with po-
sition of users in emergency which is re-
ally suitable for explorers and extreme
sport players. Cooperating with out-
door sports stores is surely a win-win
deal. We could reach more consumers
while they build their reputation for
take care of their customers.
Nursing homes: For instance, Stock-
holm Sjukhem. Nursing home are
responsible for taking care of elder-
ly, whose health need to be regularly
monitored. Elderly people are among
our main target users; thus the cooper-
ation with nursing homes could help us
to improve our products according to
their feedback.
Some of our possible partners in Sweden:

Preparing stage (3 months)
Expenses
In Preparing Stage, we focus on product development. Our main expenses is proj-
ect costs and we will also do some market surveys to keep the development in
the right way. At the same time, we are researching for financial supports and
technical supports.
Our estimate research period is 3 months including test period. The total expens-
es for project in 3 months is about $39,000, as described in the table below:
Financial Plan
Income
In the product-developing stage, we are going to complete our product as much
as possible, in order to attract the venture capitalists. And we will also apply for
funding and technical support in KTH, EIT and other organizations which who be
interested in our project.

Starting Stage (3 months)
In the Staring Stage, it is the first time for our product to appear into the market.
This is the very point which decide if we can circumvent the entry barriers. The key
for this stage is to keep improving reliable services based on the feedback from
our users.
Expenses
After the first three months, we will prepare to penetrate the market. According
to market analysis, the first try customers are 10,000. In order to win the market,
our plan is to provide the devices for free and customers are charged for premi-
um service. We plan to send out 15,000 devices into the market and provide free
overall service for the first month. The total costs for the starting stage is about
$240,000, as described in the following table:
Income
Our pricing strategy is Freemium. As it is mentioned in the expenses part, we will
send out our device for free. Our TCare can be used like an ordinary watch or
medical identity card without premium services.

We will charge our users after the first trial month. We forecast in the next two
months that 40% of them will register for the full package, 40% will choose some
of the items, resulting in a total of 80% loyal users.
The total income for the starting stage is about $400,000.
The price for accessing these services is described in the table below:

Developing Stage (1 year)
In developing stage, we are going to build a firm relationship with our customers.
Firstly, we improve TCare according to the Market feedback. Secondly, we contin-
ue to send out our device to potential customers. People can receive our devices
in various ways for instance, registering in our website, buying products or service
at our partners’ stores.
Expenses
According to our market analysis, the number of customers is increasing during
the developing stage and we will offer much more free devices for potential cus-
tomers. Another main expenses in developing stage is to enhance our service
which including health education video and health hints. To build a firm relation-
ship with customers, we plan to organize some seminar both online and offline
to discuss about the TCare experience. Offline seminar is especially important for
elderly users living alone and have the need to talk.
The total expenses for developing stage is about $1,320,000.

The total Income for developing stage is about $4,680,000.
Expanding Stage (3 to 5 years)
After the first developing stage, our products will be comprehensive at a certain
level. We have more experience in dealing with products and users and we will
also build a friendly and long-term community among users. In the Expanding
Stage, TCare will be introduced to other countries like America, Canada and China.
Our target places are developed cities where many elderly people or youngers
who live alone. We will set an office in each city to maintain the community and
provide after-sale services.
The expenses in the expanding stage includes service development, additional
workshops, advertisements in new market and devices and so on. We will pay
most attention to the development of products and the expanding market.
The income in the expanding stage includes the incomes subscribed user as well
as new advertisers.
Income
In the stage of development, we estimate our users are 15,000 for the whole year.
And there are more people prefer our Package and the percentage is about 60%.
Since we attract more and more people, there are some advertisers want to co-
operate with us. Based on strict selection, we will allow some advertisers related
to health issue to post their advertisements on our website. These advertisers will
be charged a certain amount of money. The Income on developing stage is shown
in table 4.5.

Conclusion
I
n this report, we analyzed the feasibilities of this business opportunity in differ-
ent aspect. With a detailed review about the market space, customer space, cur-
rent trends, competitors as well as entry difficulties, this report provode a com-
prehensive view on telehealth industry. Many facts about the anticipated growth
of this market is also included, convince us to believe this is a highly potential
market to establish a business.
Based on the analysis from the first part, in the second part, the authors discuss
some requirements to be success in this highly competitive market. Our approach
is to build a different products and services, which can combine advantages from
current solutions and eliminate some common limitations of them. With this ap-
proach, we are not only differentiate ourself from other vendors, but also bring
novelty to the market. By combining both software and hardware solutions with
open-standard, we can create a more attractive value proposition for the custom-
er. One of the most important characteristic is the revenue model based on ser-
vices, not in hardware products as others vendors. Free devices with a large ditri-
bution channels through our partners will help us to reach customers effectively in
a short time. Customer involvement is encouraged in our business, which will lead
to a sustainable competitive advantages.
There are still many problems need to be solved, however, we believe that our
business approach based on a comprehensive analysis of the industry will be an
appropriate solutions to make the most of this opportunity.

Opportunity Assessment
telehealth business
THE BUFFETT GROUP:
HAO JIANG
HAI DINH TUAN
NINH TRUONG MY HAI
PINGPING LIN
YANBO HUANG

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