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Case Study Week 7

1439 words - 6 pages

Tara Smith
HSA505  Prof. Harold Griffin
Stopping Outshopping
Tara Smith
HSA505  Prof. Harold Griffin
Stopping Outshopping

Marketing Strategies within the Health Care Industry
Scarlet Hospital, a not-for-profit health care facility based in Walnut Grove, population 25,454. The purpose of this case study is to reveal the market competition and strategies required to compete and survive in the health care market. Because recent construction has given Walnut Grove residents access to nearby Salem 50 miles away, patients whose only option was locally based Scarlet Hospital, now have 4 major medical centers to choose from in the town of Salem.
President ...view middle of the document...

However, as with any business, they were only as successful as their customers made them. The focus was not on expanding their market therefore, patients who could not have their needs met on site where forced to seek care from smaller health care facilities within Walnut Grove. This means that patients who now have access to major medical centers in Salem may find it easier and less time consuming to seek medical care from a provider who can satisfy all their needs at one location. Not only will this save on time but potentially financially as well as patients will only have to pay one fee to utilize multiple services.
For companies complacent in their methods, “Stopping Outshopping” teaches credible lessons targeted at corporations who focus only on one method to ensure success. Scarlet Hospitals’ sudden interest in preventing Outshopping shows that they are not currently equipped to compete with Salem’s healthcare market. Not having paid critical attention to advertising methods such as billboards and radio advertisements until 6 months prior to the highway being finished meant a rush to appeal to their own clientele in order to retain as many patients as possible. With Salem being larger geographically and more progressive in terms of advertising and marketing within their healthcare centers, Scarlet Hospitals justifiable fear was being seen as inferior to “big city” healthcare facilities. In retrospect, the lack of advertising and interest in expansion does cause Scarlet Hospital to appear less progressive than its competitors.
Michael Porters five forces analysis looks at five specific factors that will determine a business’s chances of being profitable, based on other businesses in the area. “Understanding the competitive forces, and their underlying causes, reveals the roots of an industry's current profitability while providing a framework for anticipating and influencing competition (and profitability) over time"(Porter, 2008). When applying Porters analysis to Scarlet Hospital, several options can be implemented to ensure that the hospitals market share is protected. The following forces are included in Porters analysis; competitive rivalry, bargaining power of suppliers, bargaining power of customers, threat of new entrants, and threat of substitution of products or services. Following this analysis allows Scarlet Hospital to see on what levels is the business lacking, and further allows the hospitals management team to implement counteractive measures to ensure the expansion of the highway from Salem into Walnut Grove does not negatively impact patient retention rates. Scarlet Hospital and its management team must first use SWOT analysis to determine what its strengths, weaknesses, opportunities, and threats are and in what ways can they capitalize on strengths and opportunities while preventing weaknesses and threats from hindering present and future growth. Since it is realistic that only Salem medical facilities will benefit...

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