Marketing Management - Delmont Private Hospital - Case Study Example

Delmont Private Hospital Customer’s Name: Lecturer’s Name: Course Code: Date: Executive Summary Delmont Private Hospital is a medical institution that prides itself in offering the best medical service. Having been in the business for a long period of time the business for the private hospital seems to have slowed down something that has necessitated a stock taking to find out the problem. In the course of the analysis it is evident that this is a business entity that has great potential only if the company changes its approach especially in terms of market positioning and products. In so doing the company is definitely bound to boost its sales and profits as well. Medical services are always demanded something that points out to the amount of business available to Delmont Private Hospital. Table of Contents Executive Summary 2 Introduction 3 Background information about Delmont 4 Microenvironment analysis 5 Macro environment analysis 6 Market segmentation, positioning and targeting 8 Positioning and Differentiation 9 Conclusion 10 References 11 Introduction In this paper the focus will be on the market performance of Delmont Private Hospital. This is because of the constant fluctuation in the performance of the hospital in the market especially in terms of the profits thy make and the client base they have. This fluctuation witnessed is manifested in the sense that the sales and demand for the Hospital services are not stable with the numbers always changing each and every month. The paper aims to find out the reasons behind the fluctuating performance of Delmont Private Hospital in the market. The fluctuation is a trend that causes concern because if ignored could culminate in a disaster which the company may be unable to avert perhaps because it may be too late (Richardson, 1998). This therefore warrants an in depth analysis into the reasons why the Delmont Private Hospital service demand consumption is not relatively stable and how this trend can be stopped. To achieve these goals the paper aims to dissect the entire industry, the markets as well as the company’s activities and environment in an effort to determine the real cause of the problem. Demand for hospital services is always high so the unstable performance of Delmont Private Hospital is a cause of concern that needs to be addressed urgently. Financial records will be analyzed as well as consideration of the macro environment in an effort to find the loop holes and seal this to ensure the company maintains its performance. Background information about Delmont Delmont Private Hospital offers a wide range of services ranging from outpatient to inpatient. As a marketing strategy to concur the market they offer numerous services that are markets specific so as to win over many clients. Elements such as the diversification of the services provided is a strategy aimed at ensuring the hospital is appealing to the market and thereby attracting more customers. Consumers are able to find the different services that they desire hence they remain loyalty to Delmont Private Hospital. Over the years due to the increasing client base the company has been forced to expand its operations and open many other branches in other regions in an effort to contain the client demands (Bessant, 1994). As the Hospital has expanded over the years the company has also diversified their services and increased their asset. When the Hospital started it had just a few ambulances, a single hospital with a few beds a few doctors and nurses. Some decades later the hospital has numerous branches with a medical staff of over a hundred and many more ambulances. Though the company has tried to keep up with the market demands and constant changes, the past few years have seem relative stagnation with time to time fluctuation in the performance. However the demand for the services have not changed and it is this that necessitates a thorough look into the Hospital and how best to improve and grow its service demand and consumption. Delmont Private Hospital is a business entity that is able to make a lot only if steered in the right direction and with right strategies in place. Microenvironment analysis One of the key factors affecting this industry is competition. The challenge is that the public medical institutions offer cheaper medical services and hence most of the people tend to flock for such services. This is something that has not favored Delmont Private Hospital. The Hospital has specific markets that it has targeted where it see potential customers. Due to the fact that the services it offers are consumed across board since each and every person requires medical attention at some point, the hospital is one that is ever busy (Teare & Monk, 2002). This has allowed the company thrives through all the seasons. The company has exploited is the development of an inpatient wing where patients can be admitted over a period of time while they recuperate. This avenue has been instrumental in the determination of the plans, procedures and structures the company puts in place when planning and strategizing for the financial year. To counter competition Delmont Private Hospital has ensured that the services they offer are top notch something that they believe will help retain their clientele who will also market them out there (Suh et. al, 2004). Using all these elements the strategizing for these markets has been designed to appeal to the consumers. This is why the consumer behavior forms a critical part of determining the type of products the company produces and how they are packaged as well as labeled. Provision of a variety of services is something which was adopted due to the varied demands and needs of customers. This eventually led the company to diversify the production by increasing the services offered so as to be able to win over all the clients who require different services. Macro environment analysis The macro environment is basically the outside factors which the company has no control over yet they still affect the decision making process of the company due to their direct influence on the planning, strategizing and performance of the company. Some of these factors influencing the medical industry include demography, the economy, politics, legislation, social as well as the technological factors (Brown & Eisenhardt, 1998). All these are factors that the Hospital cannot control although they directly affect the service provision of the hospital as well as the demand for the services they offer. This means that the profits the company makes are in part determined by the positioning of the elements of the macro environment. Delmont Private Hospital as a company in the medical service provision industry is also affected by the different elements of the macro environment. This means that the need to consider the state of the macro environment around the company is important in determining the reasons behind the recent trends in the performance of the company. Each and every aspect of the macro environment has a direct or indirect impact on the performance of Delmont Private Hospital especially with regards to the consumption of their products (Stoelwinder, 2002). The fluctuations of the consumption trends could perhaps be attributed to the volatility of the macro environment. One of the probably causes in the consumption fluctuation of the hospital’s services could be the constant legislation changes made in the production sector. Changes in the legislation affecting the medical industry affects the demand and the consumption of the services offered by Delmont Private Hospital. As such the fluctuation with regards to consumption could in part be attributed to the legislation and regulation changes occurring from time to time (Williams, 1988). The steady demand for Delmont Private Hospital services can only be guaranteed by relatively stable industry with minimal alteration that is clearly affecting the sales of the cakes. The other factor that could be responsible for the fluctuation in the consumption of the services offered by Delmont Private Hospital could be the relatively unstable economy which is struggling to stabilize. Due to the unpredictable economy the products and their prizing are constantly fluctuating something that also affects the profits and performance of the Hospital. Such constant changes hamper the Hospital from implementing the strategies they have set out since they are always forced to adjust so as to fit into the changes taking place in the markets. When the economy of a country is compromised people will tend to prioritize the consumption of specific services which they feel are important such as basic needs and this also service demand (Masuch, 2012). Market segmentation, positioning and targeting The Hospital has heavily invested in the acquisition of ambulances because of the constant need for picking up customers from time to time from different areas. As such the company has also had to employ a lot of paramedics who are mandated to offer first aid and carry the patients to the hospital for the doctors and nurses to attend to them. As a matter of strategizing the Hospital ambulances have been clearly labeled so as to standout and also allow the patients be able to use them when they need them. Delmont Private Hospital has also come up with special medical packages that are meant to compete with the relatively cheaper services offered by the government and public hospitals (Vaithianathan, 2000). These are strategies that has been working and has over the years attracted more patients to Delmont Medical Hospital although judging by the stagnation it need to be revisited again. As a marketing strategy to attract more clients the market they offers numerous services that are markets specific so as to win over many clients. The aim of the market specific services is to target specific individuals and markets with the services put in place (Cheng & Grimm, 2006). Consumers are able to find services that they want hence they order for the same. In realizing the importance of retaining the clientele Delmont Private Hospital also ensures it offers quality services to retain their clientele by winning over their loyalty. Over the years due to the increasing client base the company has been forced to expand its operations and open many other branches in other regions in an effort to contain the client demands. The expansion has also been done strategically targeting places where the company can thrive due to the client base and demand for the services that they offer (Grossman, 2000). The Hospital is able to thrive because of the assurance of an ever ending demand for its services in the market. Due to the overcrowding in the public hospitals the Delmont Private Hospital has been able to enjoy more visits from patients who offer the quick and efficient services that they offer. This is why as a marketing strategy to win over more patients they produce numerous services that are tailored to suit the patients’ demands so as to win them over (Teece et. al, 1997). The Hospital focuses on very specific services and places where it sees a lot of potential customers. This is the reason behind the thriving of this Hospital. These markets trends and customer behavior have also been important in the determination of the plans, procedures and structures the Hospital puts in place when planning and strategizing for the financial year. Positioning and Differentiation Conclusion Delmont Private Hospital is a business entity that seems to be thriving in the activities that it is engaged in. This means that they only need to adjust a little to stabilize their performances. I recommend for them to diversify their operation so that they are not exclusively dependent on the services they currently offer. This will allow them to add more services to what they are already offering since this may earn them more profits. Such a strategy will allow them thrive since they will be able to spread the risk. The company could for instance consider opening up home care centers where the elderly can be watched after as a way of expanding. Considering the state of the elderly in Australia and how much such services are demanded this could work to their advantage. References Bessant, J. (1994). Innovation and manufacturing strategy. In The Handbook of Industrial Innovation, ed. M. Dodgson & R. Rothwell. Cheltenham: Edward Elgar Brown, S.L. & Eisenhardt, K.M. (1998). Competing on the Edge: Strategy as Structured Chaos. Boston: Harvard Business School Press Cheng, L.C. & Grimm C., (2006). 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