Should 1mg prioritize expanding its prescription medicine delivery service to more cities or focus on improving delivery speed in existing markets?

Introduction

The trade-off we're examining today is whether 1mg should prioritize expanding its prescription medicine delivery service to more cities or focus on improving delivery speed in existing markets. This decision is crucial for 1mg's growth strategy and customer satisfaction. I'll analyze this trade-off by considering market expansion versus service improvement, evaluating the impacts on various stakeholders, and proposing a data-driven approach to make an informed decision.

Step 1

Clarifying Questions (3 minutes)

• Based on 1mg's current market position, I'm thinking expansion might be a priority. Could you share how our current market share compares to competitors in existing cities?

Why it matters: Helps assess whether consolidation or expansion is more critical. Expected answer: We have a strong position but room for growth in existing markets. Impact on approach: Would lean towards improving speed if market share is already high.

• Considering user behavior, I'm assuming faster delivery is a key driver of customer satisfaction. Do we have data on how delivery speed correlates with repeat purchases or customer lifetime value?

Why it matters: Determines the potential impact of speed improvements on revenue. Expected answer: Strong positive correlation between speed and customer retention. Impact on approach: Would prioritize speed improvements if correlation is high.

• From a technical perspective, I'm curious about our current infrastructure. How scalable is our existing delivery system for new cities versus optimizing for speed?

Why it matters: Assesses the feasibility and resource requirements for both options. Expected answer: System is modular but would require significant investment for either option. Impact on approach: Would influence the timeline and resource allocation for each strategy.

• Regarding resources, I'm wondering about our current team structure. Do we have dedicated teams for expansion and for optimizing existing operations, or would this require building new teams?

Why it matters: Determines the organizational impact and potential hiring needs. Expected answer: Some overlap in teams, but expansion would require new hires. Impact on approach: Would affect the timeline and budget considerations for each option.

• Thinking about timelines, I'm curious about any upcoming market events or competitor moves. Are there any imminent launches or expansions from competitors that might influence our decision?

Why it matters: Helps prioritize based on market pressures and opportunities. Expected answer: A major competitor is planning to expand to new cities in 6 months. Impact on approach: Might accelerate expansion plans if competitive pressure is high.