Scarlet Hospital
Scarlet hospital is situated in Walnut Grove and has beenoperating for the last fourteen years. The time should have been plentiful to be ready and prepare for the indefinite and erratic future competition. Emphasizing on the Stopping Out shopping case study, it is apparent that Scarlet hospital did not haveadequate preparation for competition with the formation in Salem before the development of the highway. Because of the authentic and poor road-grid between Salem alongside Walnut, the top leaders of Scarlet hospital were not able to forecast the issues that were likely to happen in future attributed to the competition which sprouted from those medical facilities that were well formed ( Kumar Velayudhan, 2014). Unpreparedness is seen whereby three months just before the highway establishmentis the time Timothy and his members of staff began promoting and advertising the medical facility using billboards, radios alongside newspaper. Scarlet hospital’s executivesfearedlosing potential clients to other well-established hospitals in Salem because their services were reflected as of high quality compared to those offered by Scarlet hospital ( Patel & Shukla, 2016).
Lessons
“ Out-shopping” refers to the approach of going outside the domestic community to buy goods or acquire desired services. In the Stopping Out-shopping case study, it will be of importance if the Walnut Grove’s people will decide to go and attain medical services while abandoning Scarlet Hospital in their neighborhood or domestic community. The case “Stopping Out-Shopping” provides a lesson to the health care leaders that complacency which defines a feeling of safety or pleasure without information of the possible riskcan cause future problems to the medical facility. Such anissuewill most probably arise due to the improvement of the infrastructure that will enhancerivalry from other providers of health care services (E Dobbs, 2014). Executives and the top management of the health facility have an obligation to upgrade the service delivery with the aim of deterring and avoiding unwanted competition from other medical hospitals. It is worth noting that health care facilities have a role to play which includes providing the most appropriate services to the community.
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Porter’s Five Forces and SWOT Analysis
An assessment of Porter’s five forces refers to a charter which tries to have the rivalry level evaluated in a business and industry levels with the aim of developing long-term strategies. In the current case study which incorporates Scarlet medical facility, the health sector has a huge threat of fresh entrants. The threat is due to the highway development that easily links Walnut Grove and Salem. It is worth noting that Scarlet hospital is in a huge risk of losing its possibleclients to Salem’s well-established medical institutions that have high-quality amenities and enjoy big economies of scale ( E. Dobbs, 2014). Because of Scarlet Hospital closeness to its possible customers, the medical facility can overcome the threat of the fresh entrants in the market by utilizingits popularity.
The competitive rivalry strength between those well-established medical institutions and Scarlet hospital is ever rising. Due to this elevatingrivalry, Scarlet hospital’s managers are undergoing fear because they are in phobia of their clients going to the already established medical institutions. Advertising level coupled with a powerful strategy of rivalry have majoreffects on the intensity of competition. For Scarlet to successfully overwhelm this problem of competition intensity, the management should use proper mechanisms of promotion and advertisement ( Kumar Velayudhan, 2014). The executives of the institutionshoulddevelop new strategies to beat the rising rivalry.
Patients bargaining power is the key elementthatshould be addressed in the course of decision making with the aim of reducing the prospects of losing clients to other healthcare institutions that are located in Salem. There are a number of elements that should be evaluated and they include the availability of information for clients regarding pricing and the uniqueness of the services the medical facility provides among others (E Dobbs, 2014). Scarlet hospital, being a not-for-profit facility with general surgical and medical services has benefits over other health care service providers in Salem as far asclients’ bargaining power is concerned.
Vendors’ bargaining power in the form of doctors, managers, nurses, medical suppliers as well other proficiencies are of hugeimpact to the Scarlet hospital’s effective choice. It is evident from the case study that Scarlet hospital executives are effective since they seek ways to counter the issues of increasing rivalryexperienced from fresh entrants in the industry( Martello et al., 2016). Scarlet hospital has an added benefitbecause of its willing and knowledgeableemployeeswho compete for the huge industry share with other providers of health care amenities in Salem.
Even though the hospital’s senior leaders experience the problem of erratic competition due to complacency, the facility still boosts from its strengths both within and outside. Some of the strengths Scarlet hospital maintains area capacity of three-fifty beds, considerable levels of quality services and trustworthyemployees. Strengths are of importancebecause they help the hospital attain an added competitive advantage. Any given institution in the world experiences numerous weaknesses during its operation ( Patel & Shukla, 2016). Hence, Scarlet hospital experiences some weaknesses that should be addressed to boost its competitive advantage. For instance, a poor method of advertisement is the key challenge that Scarlet Hospital is currently facing, and the institution’s top managersneed to address the problem to boost the share of the market.
Scarlet Hospital since its establishment has been working only in Walnut Grove locality; therefore it has an entrepreneurialchance for expansion and development. The entity can take this chance as an advantage to establish other branches in regions such as Salem which is well developed. The medical facility should further evaluate the prospects of attracting more investors to boost its market share and therefore attain extra competitiveness ( Martello et al., 2016). Proper strategies of marketing should be adopted by the top management of the hospital before making a decision to expand through setting new branches.
Value of Balanced Scorecard
The approach of the balanced scorecard is a framework of strategic planning which industries and businesses use extensively to align operationswith the aim of attaining aims and objectives set. A balanced scorecard is fundamental to an organization’s strategy and vision in monitoring performance on strategic goals. This model would be vital in reinforcing the defensive approach to marketing for the Scarlet medical facility if well executed. Reasons behind why Scarlet hospital should execute a balanced scorecard include increasedemphasis on results and policies, looking to the future performance drivers, an enhanced vision of the company, communication and prioritizingprojects;together withan elevated performance by measuring what matters ( Perkins et al., 2014).
Marketing Strategy
For Scarlet hospital to have the situationschangedon providing health care, proper advertising should be utilized. Advertising is a form of marketing communication applied to sell or promote a commodity in the market as far as target clients are concerned. At times in a business, advertisements are conducted to provide shareholders and workers with an assurance that the organization is successful. Advertisements in Scarlet medical facility would be helpful inpromoting its services and would lead to a high number of clients seeking health care services from the medical institution ( Martello et al., 2016). Good mechanisms of advertising including radio, billboards, TV, magazines alongside newspaper can be used by the hospital promote its services. Advertising enhances the competitive advantage of Scarlet medical facility over Salem based hospitals.
References
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review , 24 (1), 32-45.
Kumar Velayudhan, S. (2014). Outshopping in rural periodic markets: a retailing opportunity. International Journal of Retail & Distribution Management , 42 (2), 151-167.
Martello, M., Watson, J. G., & Fischer, M. J. (2016).Implementing a balanced scorecard in a not-for-profit organization. Journal of Business & Economics Research (Online) , 14 (3), 61.
Patel, J. D., &Shukla, Y. S. (2016). Consumer shopping orientation: identification and characterization of outshoppers. Journal of Indian Business Research , 8 (1), 43-64.
Perkins, M., Grey, A., &Remmers, H. (2014). What do we really mean by “Balanced Scorecard”?. International Journal of Productivity and Performance Management , 63 (2), 148-169.
