• HealthStream Co., Ltd. –Transforming from Trading Company to Original Design Manufacturer

Abstract

HealthStream Co., Ltd. transformed from trading company to original design manufacturer through twice strategic revolution. HealthStream successfully integrated its supply chain, and manufactured private products in 2011. This case highiughts the transformation process of HealthStream through the following dimensions. (1)The possible reasons and actions of strategic revolution. (2)The means to integrate supply chain to strengthen competitive position, including whether HealthStream accepts the supplier that its customer refers, whether HealthStream convinces its customer to accept the supplier that HealthStream collaborates with for a long time, and how to reinforce the relationship between HealthStream and its agent. Through the case, students will realize the role each firm plays in the industry, and the relationship between each firm that locates in upstream, middle stream and downstream. Further, students will deliberate the reasons and actions of strategic revolution, the factors to facilitate supply chain collaboration, and successful factors of supply chain integration under relational structure.

Keywords: Strategic Revolution, Supply Chain Collaboration, Relational Structure, Supply Chain Integration