Where is MoleMap as at March 2011?
The challenging economic climate of 2008/09 gave MoleMap’s executive just the excuse it needed to complete a thorough evaluation of their business model.
Having identified that the most profitable route for the business was via a franchise model, MoleMap directors sought to entice more dermatologists - as well as a plastic surgeon - into its corporate structure. This was seen as a means of forging new growth while reducing the reliance on constant capital injections to help the business achieve its geographical and financial objectives.
This strategy has worked particularly well, most notably in rural Victoria where the franchisee, a clinical nurse manager, has generated substantial volumes of new business.
Today MoleMap continues to grow, but has undergone a complete rethink of its modus operandi. They now run a leaner but more profitable operation by having fewer clinics that generate more recommendations from doctors, resulting in a higher level of compliance than its New Zealand operations.
Following the decision of its Australian-based general manager to return to New Zealand, MoleMap decided to centralise the Australian head office and call centre. With both operations now conducted out of New Zealand, the company has managed to introduce a more consistent level of service while also reducing their overheads.
Having consolidated its distribution networks to ease the threat of over-distribution, MoleMap now has a presence in Queensland, Cairns, Brisbane and Townsville, and has also introduced two franchise clinics into Australia, joining the nine in New Zealand and four in the United States. It now plans to extend the franchise model into Western Australia and Adelaide.
Altogether the changes made within the business have helped contribute to a $500,000 turnaround in the company’s bottom line.
Mole Map continues to face challenges in overcoming the varied regulatory compliance requirements, in particular to market its own healthcare solutions, as it has yet to receive approval through the Australian Government’s Medicare system.
However the company has a clear strategy to overcome these issues, and is committed to bringing about change.
Although the company’s first venture into Australia was not overly successful, the lessons learnt early on allowed it to head back to the drawing board to devise a more appropriate business model with minimal financial exposure.
By being open to altering its strategic direction it has successfully captured the attention of an eager Australian audience and as a result continues to enjoy commercial success.
What has Molemap learnt?
MoleMap learnt a number of lessons from investing in Australia:
- Allow a flexible business model: MoleMap entered the Australian market with a clear intention of appealing directly to the Australian public. However, they found that without a qualified intermediary to educate the public on the benefits of the technology, their message was not reaching the target audience. By cutting their loses early on and then re-entering with a wholesale rather than a retail offering, MoleMap was successfully able to utilise its professional partners to effectively sell the concept on the company’s behalf.
- Recognise the differences between the two markets: Owing to the vast differences between the health systems of New Zealand and Australia, MoleMap was unable to adequately forecast patient numbers. They discovered that while New Zealand patients were largely self-referred, many of MoleMap’s Australian business came from doctor referrals. This meant a much higher level of compliance in Australia than in New Zealand.
How has the investment been a success?
MoleMap’s success in Australia has helped establish a blue print for the business to follow upon entering other international markets. Its Australian experiences has allowed it to trial different approaches and helped identify the franchise model as the pathway for future growth.
More information:
www.molemap.co.nz
