Questions and Answers of Health Care Market Strategy

9.Satisfaction. Consumer satisfaction is the ultimate goal.
8.Usage. The process is not over yet. If the service meets the consumer’s expectations, the consumer is likely to buy again. Honda promotes the number of its repeat customers.
7.Choice. Finally, after becoming aware of seven places to receive care, studying four places, and visiting two places, the consumer makes a decision.
6.Preference. At this point, the purchaser of care narrows the field to one, two, or maybe three choices. All of the choices have met the earlier criteria, and the consumer is reaching a decision
5.Location. Increasingly, location is one of the most important variables in decision-making about health care. Years ago, when physicians were scarce and consumers more passive, location was clearly
4.Contract access. This stage is unique to health care. A patient may think that Johns Hopkins provides the best care in the United States for Parkinson’s disease patients, for example. If the
3.Perception. Potential customers have some beliefs about the service. For example, not only does Community Hospital provide cancer services but it also provides good cancer services. In this stage,
2.Providing patients with a discount for cash payment—Many hospitals and doctors will offer cash discounts to patients, regardless of income, if they do not use their insurance. Los Alamitos
1.Offering package prices—This strategy is increasingly commonly offered to a self-pay segment of the market. Aultman Orrville Hospital in Orville, Ohio, offers a package pricing program in their
■■Clinical affiliations in which Duke physician coverage is provided.
■■Cancer program affiliates in which Duke provides continuing medical education and continuing education, research support in addition to clinical research offerings and co-branding opportunities
■Clinical research and educational affiliations whereby Duke conducts regulatory and clinical research audits along with tumor board presentations at their affiliates.
3.Memorable. Brand names should be easy to spell and pronounce. Otolaryngologists overcome this problem by listing themselves in the yellow pages under “ear, nose, and throat.” Many
2.Concise. Most good product names are short and crisp.
1.Meaningful. A program’s name should be relevant to the market for which it is developed. For example, “regional oncology program” means little to the community at large. The nonmedical person
5.Brand assets are proprietary resources, such as the service mark of a brand.Brand equity is increasingly being eroded within health care as organizations merge or consolidate. Long-held names are
4.Brand associations link a consumer’s memory to a brand. In health care, these associations are being created by many healthcare organizations by pairing the healthcare provider with sports teams.
3.Perceived quality is the value a consumer perceives a brand has. This perception has led to a trend in recent years as major tertiary and academic centers in the United States, such as the Mayo
2.Name awareness indicates how well known the brand is in the marketplace. The Mayo Clinic has exceptionally high awareness compared to other healthcare provider organizations. In a 2003 national
1.Brand loyalty is the commitment buyers have to a particular brand. Brand loyalty is useful in reducing marketing costs and creating barriers to entry from others, as customers say, “I would go
4.Is it possible to modify current products to become more competitive? Since 1997, the amount of plastic surgery procedures has increased by 99%.11 However, since 1998, the real, mean adjusted price
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7.Niche and harvest strategies are two possibilities for any healthcare organizations using the strategy/action match. Under what conditions would these approaches be relevant? Provide examples where
6.In the mature stage, a maintenance strategy is often the norm. Describe the different strategic options available between the leader and those that are not in the dominant position in the market.
5.Explain when in the strategy/action match the “differentiation” strategy is to be implemented. Provide examples for an outpatient service if there is more than one possibility for the
4.A health system is the first in a major metropolitan area to offer a comprehensive senior memory disorders clinic. Staffed with neurologists and other specialists, the clinic is integrated within
3.What are the factors that can move a service from one stage to another through the product life cycle? Which of these factors can be controlled by the organization as a function of the
2.A physician in a medical group has just attended an educational program in which she heard a presentation about the Ansoff model. Intrigued about the possibilities and implications it might pertain
1.What are the strategic options available to any business? Provide an example of each option for a freestanding, urgent-care center that has been opened within a retail shopping mall.
3.Can the service be distributed more efficiently, or can accessibility be significantly increased such as with a mobile format?
2.Can the service be improved?
1.Is there a segment of the market that is not being served?
2.Innovate. A key advantage of being the leader is often the large revenue base that comes with that position. To maintain it, the leader should strive to develop new offerings
1.Segment and fortify. The leader has the power to segment the market by focusing on the more profitable groups and can attempt to fortify its market share within these segments.
4.It keeps future ideas confidential until it is necessary to introduce them for competitive advantage.
3.It allows the organization to save new ideas or service modifications until it needs to be more competitive.
2.It allows the organization to obtain recognition in the marketplace for a specific service.
1.It allows the organization to concentrate its resources on one option and to develop consistent quality. A critical review of the results of the organization’s internal assessment is important
6.Eventually, the rate of change of the market shares of the largest firms declines and the leadership of the industry declines
5.At the beginning of the industry, the number of entrants may rise over time, or may peak at the start of the industry and then decline over time.
4.Each stage presents different opportunities and competitive issues for the provider or producer
3.Profits rise and fall at different stages of the life cycle.
2.Products pass through four distinct phases, each one presenting different strategy issues and challenges.
1.All products (and services) have a limited, defined life.
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1.John F. Kennedy, Speech to the American people, May 25, 1961.
4.Many strategic plans lack financial underpinning. Why?
3.Why do healthcare strategic plans often seem overwhelming in scope and expectation? What can be done to manage the scope of the plan?
2.Can a multispecialty hospital or clinic have a focused competitive advantage?
1.What are current examples of myopic thinking in health care?
14.Does the entire leadership team understand, with precision, the strategy of the organization?
13.Are the critical success factors clear and precise?
12.Do the goals reflect the important operating needs of the company?
11.Do the goals specify measurable outcomes and time frames?
10.Is the vision statement a useful guidepost?

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