Sword Health

Virgilio "V" Bento, CEO of Sword Health-a startup that provided virtual physical therapy to patients in self-insured firms via AI and sensor technology with supervision by a physical therapist with a doctorate-considered how to increase its U.S. market share. To do so, it could use lower-cost supervisors, such as health coaches; sell a direct-to-consumer product; or work with retailers, among other options. Sword Health's main competitor, the unicorn-valued Hinge Healthcare, had the first-mover advantage, but Sword had FDA clearance, a fuller stack of applications and higher-credentialed supervision. Sword and Hinge charged the same price to the client. How should Sword Health best optimize its business opportunities? This case is suitable both as a general business case for undergraduate and MBA students of any level with focus on strategy, entrepreneurship, digital health, artificial intelligence, muscular skeletal issues, the healthcare industry, and physical therapy.