Strategic Maneuvering in Healthcare Technology Markets: The Case of Emdeon Corporation
Kirill M. Yurov,
Yuliya V. Yurova and
Richard E. Potter Additional contact information Kirill M. Yurov: University of Illinois at Chicago, USA
Yuliya V. Yurova: University of Illinois at Chicago, USA
Richard E. Potter: University of Illinois at Chicago, USA
Healthcare technology markets have been recently identified as potential investment targets. Having survived a major environmental shock, the dot.com bust, firms in the healthcare technology industry are presently experiencing an impressive revenue growth. In this study, we investigate the strategies of Emdeon Corporation, a healthcare technology firm whose e-business model provides clues for achieving a sustained revenue growth and profitability. We trace the current sustainability of Emdeonâ€™s e-business model to a related diversification strategy that the firmâ€™s upper management has pursued via mergers and acquisitions (M&As). We also address the motivation behind current restructuring of Emdeonâ€™s e-business model. We argue that maturation of diversified e-business models leads to the transformation of individual segments into distinct entities focusing on specific technology markets.