“Stopping Out Shopping”
“Stopping Out Shopping”
Scarlet Hospital is a 350-bed hospital, not for profit general medical and surgical hospital. It is located in Walnut Grove (population 25,454). Walnut Grove is a small community located in the Mountain region of the United States. Salem is a large metropolitian area located about 50 miles east of Walnut Grove. For are reading both are located in the Mountain region of the United States. The president and CEO of the hospital is Mr. Timothy Rogers. Also for are reading transportation infrastructure improvements for the CEO of a once isolated hospital must consider the impact of patients opting to receive medical care from a nearby larger city (Jawald, 2016).
Based on the textbook’s summary of Timothy’s philosophy of continually striving for excellence determine whether or not Scarlet Hospital was prepared to compete with the establishment in Salem even before the highway improvement mandated such an upgrade in delivery health care services.
Timothy Rogers, President and CEO of Scarlet Hospital is facing an interesting and potentially threatening situation. Specifically, an interstate highway is being extended from Salem to Walnut Grove. While this development has the potential to yield many benefits it could also usher a new set of challenges. Nevertheless, Timothy’s hospital is safe. Scarlet Hospital is the largest hospital within a 50-mile radius. Other health care entities have benefited in the marketplace because consumers have been inclined to look to Scarlet Hospital for their health care delivery, and viewing other facilities is simply out of reach. In fact, the only competition in the marketplace has been an outpatient clinic in Walnut Grove. All in all the Scarlet Hospital has enjoyed delivering medical services in a highly insulated market, softening its competition prowess, but not its commitment to quality. In fact, Timothy has always believed in delivering the best health care, while striving to outdo his competition. The Scarlet Hospital has maintained standards of excellence in care delivery that rival those of other institutions in much larger cities. This gives him confidence that his hospital will be able to compete in the quickly approaching more competitive environment (Bonin, 2018).
Examine the potential lessons that the “Stopping out Shopping” case could teach health care executives about complacency.
Just as in any market “out shopping” can occur. Patients start looking to external markets for institutions to address their health care needs and wants. Scarlet Hospital’s senior management team had developed a defensive plan to help complacency. They primarily increased the hospital’s advertising efforts, secured more billboards than it had in past years, introduced radio advertising for the first time in many years, and bolstered their forms of marketing communication. The hospital was also fortunate that in their commitment to quality meant that their physical plant was excellent, their clinical and administrative staff members were excellent, and they were able to gain parity with other larger institutions. The team felt confident that their actions would protect the hospital’s market share and the plan was immediately initiated. This could teach any health care executive about complacency (Venus, 2018).
Evaluate the potential value of Michael Porter’s Five Forces analysis and the SWOT analysis for effective decision-making in its ability to help Scarlet Hospital protect its market share and this decreases its chance of losing patients to other institutions in Salem.
Michael Porter’s Five Forces Model suggests that intense competition and rivalry characterizes the health care industry. Suggests that health care entities are required to process a deep understanding for its competitors to best position themselves in the marketplace. Recognize that competition is multidimensional existing on multiple fronts, and that each front must understand if marketing success is to be achieved. Understanding Michael Porter’s Five Force Model is a tool for understanding and addressing competition in the health care industry. Knowing this Timothy knew that he would have to wage war in the marketplace. Not doubting it would require intense planning something he would initiate immediately in an effort to address the most significant threat that the Scarlet Hospital had witnessed in years. The SWOT analysis suggests the importance of routinely engaging in the systemic evaluations of product offerings in the health care marketplace. Suggests that you understand the importance of identifying strengths, weaknesses, opportunities, and threats associated with health care institutions and their associated product offerings. Understand that the SWOT analysis is a tool for analyzing the state of affairs associated with health care entities and their various products and services to consumers. Knowing this Timothy’s greatest concern was that the advertisements were creating the perception that care is perhaps less effective at the hospital (Fischer, 2019).
Appraise the value of the Balanced Scorecard model in the ability to help Scarlet Hospital executives reinforce its defensive marketing strategy.
Robert Kaplan and David Norton’s Balanced Scorecard has value because it includes the customer perspective. The customer perspective identifies goals and objectives associated with the target audiences of health care institutions. Of the many potential goals and objectives associated with customer populations, common endeavors focus on product attributes and images (such as increasing customer awareness of products and services in the marketplace). The Scarlet Hospital’s senior management team had developed a defensive plan that primarily increased the hospital’s advertising efforts, securing more billboards than it had in previous years, introducing radio advertisements, and bolstering other forms of marketing communication. The team as confident that the plan would help protect its market share and the plan was implemented (Slavovo, 2019).
Prepare an one (1) page offensive marketing strategy (i.e. communication, branding, innovation, etc.) that Scarlet hospital should deploy in order to turn the table on Salem based health care providers and improve its competitive position.
Scarlet Hospital’s one (1) page competitive position plan to help turn the table on Salem based health care providers and improve its competitive position. (1). Use current brand audit as effective positioning based on research that analyses buyers’ attitudes as well as their reaction to actual brand experiences with the marketplace. Study how stakeholders react to your brand. Discover what is imperative to your target customer regarding care delivery and their purchasing decisions. (2). Define the characterize market segments. Develop a differentiated, defensible market position. Make sure your product encompasses the needs of all audiences. (3). Focus brand-building on opportunities that drive growth and improve performance. Know what is most important to your target audience. Determine key stakeholders unmet needs. Compare your positioning with your competitors. (4). Create brand architecture and formalize naming conventions. Brand architecture is the strategic and relational structure for brands. Naming conventions can support clarity and understanding to divisions in a brand architecture. In area of sameness naming brands is one way that a brand ca consistently move forward. Try to create brand extensions if you can. (5). Define and create unique brand experiences for patients, physicians, and employees. Establish initiatives that create a patient experience aligned with the brand promise. Communicate new positions and strategies to internal audiences to develop the messaging and communication strategy to build brand awareness. Consistency and execution raise awareness and makes brand positioning stronger and more impactful. This strategies can help improve the Scarlet Hospital’s competitive positioning (Bernstein, 2019).
Bernstein, Roberta. (2019, November). Brand mark. Brandweek. Retrieved from the Strayer University Database.
Bonin, Liza. (2016, September). Quality improvement is health care, the role of psychologists and psychology. Journal of Clinical Psychology in Medical Settings. Retrieved from the Strayer University database.
Fischer, Katharine. (2109. January). Decision-making in health care a practical application of partial least square modeling to coverage of newborn screening programs. BMC Medical & Intrometric & Decision-making. Retrieved from the Strayer University database.
Jawald, Shaukat, Ali. (2016, February). Patient satisfaction. Patient safety, and increasing violence against healthcare professionals. Pulse International. Retrieved from the Strayer University database.
Slavovo, F, Trakia. (2019, January. Perfecting the management of operations at the managerial department of a university hospital. Journal of Sciences. Retrieved from the Strayer University Database.
Venue, Chiu. (2016, April). Correcting correctional suicide: Qualified suicide prevention. Boston Law College. Retrieved from the Strayer University database.