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what would be the posture strategyand with the information provided, which would be internal and external market entry and exit strategy c) Market Entry Strategies

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what would be the posture strategyand with the information provided, which would be internal and external market entry and exit strategy

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c) Market Entry Strategies Purchase - There are not many purchasing opportunities for CW Williams in the local area, mostly due to the center not having capital to make significant purchasing arrangements. One possibility to consider is to license with Kaiser since they are the HMO with the largest share of the Medicaid population. However, the ongoing expense of licensing could prove to a downfall for the center as it will continue to have lower revenue sources from public insuran payers and would need to keep the costs lower. The center could seek out funding from ventur capital investors, but there would be a difficulty in attracting someone who would want to inve the capital in the center as it will likely not develop any proprietary technology but simply ser an indigent population. Cooperation - Cooperation is the safest of the market entry strategies as CW Williams could seek and alliance or a joint venture with another organization. The first option would be an alliance with one of the local hospitals, Presbyterian or CMC. The center could agree to ser its patients to that particular hospital, as long as the center's physicians receive priveleges to serve at those locations. Doing so would allow the hospital to receive some of the dollars that would come from serving the public insured population and allow for a write-off of the community charity care to maintain any not-for-profit status. In return, the center could receiv the funding to purchase a new facility and have access to better purchasing power for increasir technology. This could give the center a higher purchasing power to lower its overall costs eve further. Another option would be a joint venture with one of the newly established HMOs to provide services for the residents of Mecklenburg County. Doing so would allow for the financial risk of providing services to publicly insured patients to be spread between the two Table 2. Appropriate c) Market Entry Strategies Purchase - There are not many purchasing opportunities for CW Williams in the local area, mostly due to the center not having capital to make significant purchasing arrangements. One possibility to consider is to license with Kaiser since they are the HMO with the largest share of the Medicaid population. However, the ongoing expense of licensing could prove to a downfall for the center as it will continue to have lower revenue sources from public insuran payers and would need to keep the costs lower. The center could seek out funding from ventur capital investors, but there would be a difficulty in attracting someone who would want to inve the capital in the center as it will likely not develop any proprietary technology but simply ser an indigent population. Cooperation - Cooperation is the safest of the market entry strategies as CW Williams could seek and alliance or a joint venture with another organization. The first option would be an alliance with one of the local hospitals, Presbyterian or CMC. The center could agree to ser its patients to that particular hospital, as long as the center's physicians receive priveleges to serve at those locations. Doing so would allow the hospital to receive some of the dollars that would come from serving the public insured population and allow for a write-off of the community charity care to maintain any not-for-profit status. In return, the center could receiv the funding to purchase a new facility and have access to better purchasing power for increasir technology. This could give the center a higher purchasing power to lower its overall costs eve further. Another option would be a joint venture with one of the newly established HMOs to provide services for the residents of Mecklenburg County. Doing so would allow for the financial risk of providing services to publicly insured patients to be spread between the two Table 2. Appropriate Internal Resources, Competences, and Capabilities for Market Fntrv/Fvit Strategies \begin{tabular}{|l|l|} \hline Market Exit & Appropriate External \\ Conditions \\ \hline & \begin{tabular}{l} Financial assessment \\ to understand the \\ extent of the center's \\ economic issues. This \\ should involve a review \\ of income statements, \\ balance sheets, and \\ cash flow projections. \\ Where costs can be \\ reduced without \\ compromising patient \\ care, this might include \\ renegotiating supplier \\ contracts, streamlining \\ administrative \end{tabular} \\ \hline \end{tabular} healthcare services is likely to decline in the future. However, the product category is expected to remain profitable shortly. By exiting the market slowly, C. Williams Health Center can minimize disruptions to its patients and staff and continue to generate revenue

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