Pharmaceutical O2O Front-end Warehouses Diagram

Strengths

• Meets 24/7 instant medication needs with fast fulfillment
• Expands product supply through partnerships with multiple pharmacies

Weaknesses

• High comprehensive fulfillment costs for nighttime and instant delivery
• Online prescription drug circulation is subject to strict regulatory oversight

Opportunities

• High frequency of chronic disease medication refills in an aging society offers vast market potential
• Last-mile delivery technologies such as drones and unmanned vehicles can further reduce fulfillment costs

Threats

• Price wars in pharmaceutical O2O across platforms are putting pressure on profit margins
• Declining profitability of physical pharmacies may impact the stability of alliances