Currently, HHH is performing excellently in its major market segment as a healthcare company. It has built an excellent reputation and good quality of service, such as nursing and physical therapy, in the community it serves. HHH has created the need for expansion to a new market segment. Therefore, to accomplish the need for growth, HHH has to create an excellent strategic plan for market entry. There are several components that HHH's new strategic plan will consider; identify stakeholders, excellent well developed strategic priorities, specific objectives and goals to be executed and create external and internal data to be involved.
Strategic stakeholders will form a significant element in developing and executing a strategic expansion plan. The most important stakeholder for HHH during expansion will include internal personnel stakeholders, neighborhood stakeholders and referral stakeholders. In this case, employees who will be relocated to an expanded market segment are the main stakeholders since they will be the ones to oversee the HHH operations. The neighborhood stakeholders include churches, schools, media clubs, local authorities and business associations. Also, this includes people who may want HHH services. The other stakeholders' group who are very important is referral sources. This group will form part of emergency referral for HHH, and they include specialized nursing facilities in the new segment, hospitals and skilled physicians.
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HHH needs to identify current and ideal states to develop strategic priorities in a strategic plan (Douglas, 2003). Conducting gap analysis is very significant since it will help to identify opportunity areas for the HHH. These will show where HHH is at the moment and where it needs to be in the future. Therefore, these priorities will be set in relation to the gab analysis. Some of the strategic priorities for HHH to be considered include establishing a good market plan and a target market, identify referral stakeholders’ framework and forming partnerships, identify healthcare promotional framework, identify employees' training programs, and select a good site for HHH.
In relation to strategic priorities for HHH, goals and objectives established should be SMART, that is, specific, measurable, attainable, realistic and time-bound (Teece, 1997). Some HHH goals and objectives can be defined in relation to strategic priorities as follows: to identify strategic site that will serve customers and staffs for HHH; it should be accessible and within the budget proposed, to identify demographic information and assessment of community needs; these will define the marketing plan and also the targeted market, and to identify referral sources for HHH to utilize data in case of referrals. Another important goal and objective will be to identify environmental needs for HHH; these will present quality patient care and possible re-admission to compete with other healthcare providers.
A very significant element of a strategic plan is an examination of external and internal data for HHH. It is very critical for HHH to analyze internal data, such as analyzing human capital. These are the three personnel to be relocated to the new segment. It is essential to have the right staff to jump-start the new HHH branch in a new market. External data to be examined by HHH include assessment of community needs and demographic area of other healthcare providers. These will give proper insight and a general idea of that market segment for business potential. Other external data to be examined include market assessment such as purchasing power, market sustainability, information programs and promotion and positioning assessment (Teece, 1997).
In conclusion, HHH can easily integrate into a new market segment with the right SMART goals and objectives. An excellent reputation of HHH will make the hospital succeed in the new market segment. Correct promotional programs and corporation of stakeholders in the region will make the HHH succeed in the market regardless of competitors who seem to have a marginal reputation.
References
Douglas, T.J., & Ryman, J.A. (2003). Understanding Competitive Advantage in the General Hospital Industry: Evaluating strategic competencies. Strategic Management Journal 24: 333-347.
Teece, D.J., & Pisano, G. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal 18: 509-533.
