Stopping Outshopping

Stopping Outshopping
Name of Student
Name of Institution
Abstract
There is a focus on the case study; “Stopping Outshopping,” that looks into Scarlet Hospital whose 14-year CEO is Timothy Rogers. He has overseen the hospital’s development with his formidable leadership skills and counteracted threats from other more established hospitals. The paper delves into the preparedness of Scarlet after the construction of the highway, lessons about complacency, role(s) of Michael Porter’s Five Forces analysis and SWOT analysis, the necessity of a Balance Scorecard model and a marketing strategy for improving Scarlet’s marketing position. The case further functions in the enlightenment of the role(s) of both traditional and digital advertising strategies in developing a business. Scarlet Hospital captures its customers using billboards, magazines, radios, social media sites and websites. Its affiliation with diversification is also a remarkable way of deciphering that Scarlet Hospital is proficient in attracting and maintaining the customers. Again, there is an exploration of innovation as the marketing strategy used by Scarlet Hospital in turning the table on other Salem-based health care providers.
Stopping Outshopping
Scarlet Hospital was prepared to compete with the establishment in Salem before improvement of the highway. The hospital is located in Walnut Grove and from the case study; there is an understanding that Timothy, the hospital’s CEO, had placed importance on the delivery of quality services to the patients.

The managerial staff was vigilant as Timothy ensured that before the highway preparations, his marketing strategies worked toward the advantage of Scarlet Hospital. The CEO was quite big on communication and advised the hospital’s managers to focus on possible strategies for improving the hospital quality and services delivered. Despite numerous other existing hospitals, Timothy managed to ensure that the Scarlet Hospital maintained its position amidst uncontrollable competition. It would have probably been a deteriorating case for the hospital if at all Timothy was not the CEO. The employment of practical leadership skills functioned to the hospital’s advantage. Insofar as the highway would assist inaccessibility significantly; it was important for Timothy to ensure that the hospital was well-marketed to potential customers. The CEO was keen to ensure that the hospital was advertised through avenues such as radio, billboards, and newspapers. Fortunately, these marketing strategies worked for the best as Scarlet Hospital did not lose its potential clients and prompted other hospitals to emulate their initiative(s).
There are uncountable potential lessons that the “Stopping Outshopping” case could teach healthcare executives about complacency. As per the case study, it is necessary for the executives to realize the importance of regularly being ‘on their toes.’ When they resort to complacency, there are higher chances of them failing terribly by simply being satisfied with the situation at hand. The hospital’s CEO, despite nil threats, was not complacent and strived to better Scarlet Hospital with each chance that he acquired. It is necessary to counteract complacency by advising these executives to ensure delivery of proper services at all times. Some CEOs and managers are blinded by short-term achievements, and this affects their ability to make sober decisions for future purposes. Particularly, health care is a sensitive societal issue hence; these managers should be constantly wary of any form(s) of threats bestowed upon them. The belief that one’s business will always be successful is a shallow manner of attempting to facilitate productivity. Again, the idea that change is inevitable should be borrowed from this case study so that health care executives learn about the same. Implementation of these changes, in fact, works best to impede competition from other institutions in the industry. Complacency is also a direct ticket to chasing customers away from one’s institution. As Timothy resorts to bringing about new changes, it is salient that he cares about the patients’ health and well-being. For instance; if the hospital did not have certain services, they may be advised to resort to their provision to ensure that the patients’ needs are satisfied. It is also a way of maintaining one’s regular customers and escaping the troubles surrounding competition in the business world.
The potential value of Michael Porter’s Five Forces analysis and SWOT analysis play a significant role in effective decision making for the protection of Scarlet Hospital’s market share (Porter, 1998). When the institution receives formidable protection, it is bound to escape any chances of losing its regular patients to other hospitals in Salem. Delving into Michael Porter’s Five Forces analysis, there is an understanding of their roles in maintaining Scarlet’s feasibility to its patients (Porter, 1998). The forces include 1) competitive rivalry 2) supplier power 3) buyer power 4) threat of substitution and 4) threat of new entry (Porter, 1998). Scarlet Hospital, for one, utilized marketing strategies as a way of counteracting the chances of competition thus adhering to Porter’s competitive rivalry force. The institution’s buyer power is also inescapable as Scarlet Hospital has managed to retain its potential customers thus, higher buyer power. Additionally, Scarlet has counteracted Porter’s threat of substitution by surpassing the other institutions through maintaining their strengths and avoiding complacency (Porter, 1998). The healthcare industry is delicate, and according to Porter, a threat of a new entry may interfere with a business’ productivity. Fortunately enough, Scarlet Hospital is in the healthcare industry, and it is not as easy to acquire entry to the same. The advertising strategies utilized by Scarlet Hospital have a way of increasing of increasing the suppliers; making it easier for them to remain in-line with Porter’s supplier power (Porter, 1998). Also; the SWOT analysis facilitates the decision-making process of Scarlet Hospital as it assists in the realization of strengths, weaknesses, opportunities, and threats (SWOTs) surrounding the business. Its strength lies in the fact that Timothy does not condone any form(s) of complacency in the business. However, Scarlet hospital’s weakness is affiliated with the idea(s) that it is only based in a single location and that the CEO has not focused on its diversification. The hospital has the opportunity of expanding its business and acquiring more customers particularly due to the construction of the highway. Expectedly, the biggest threat for Scarlet Hospital is the existence of other more established hospitals in Salem. If at all the CEO remains complacent, there is a possibility of those hospitals surpassing Scarlet’s productivity by taking away its regular [and potential] customers.
The Balance Scorecard model is valuable in helping Scarlet Hospital executives to reinforce its marketing strategy. For a possible marketing strategy, there is the need for Scarlet Hospital to focus on its finances, customers, measures of learning and the overall process of this business. There is the need for this balance scorecard as it looks into maintaining a balance in the institution. It provides a framework that brings about consistency apropos of an institution’s strategies. It is essential for Scarlet to create a balance between its long-term and short-term goals, for instance, as a way of improving the institution’s productivity and overall success. Other sectors such as finance(s) are significant in the realization of the role(s) of the balance scorecard model. In fact, the model works toward embracement of coherence that is predicted from changes in any particular organization(s). If at all there is an improvement in the financial sector of Scarlet, the model should also endeavor to impact the non-financial sectors. The CEOs and managers should strive to ensure that the growth is not a barrier to other industries in the business. Understandably, Timothy is supposed to set up the mission, vision, and strategy for Scarlet Hospital to facilitate the model and its implementation.
Scarlet Hospital can implement an innovative marketing strategy to turn the table on Salem-based health care providers and improve its competitive marketing position. First of all; the hospital should understand that creating and implementing new strategies, through innovation, will work to their advantage. Apart from utilizing only traditional means of advertisements, for instance, they should resort to digital platforms such as social media sites or websites. Social media sites such as Facebook and Twitter are faster in the dissemination of information, and they also offer the CEOs [and managers] a platform to converse with their potential customers. With websites; it is possible for patients to receive online consultations [and help] from the doctors at Scarlet Hospital specifically if their case does not necessarily require a face-to-face meeting. When patients have access to such reliable services, it is inevitable for Scarlet to turn the table on other healthcare providers in Salem. The realization that they do not have to move to the hospital for treatment physically motivates the patients and counters any form(s) of competition [or threat] against Scarlet Hospital. Unless the other hospitals also resort to the digitization of their services through innovation; Scarlet hospital will continue to have the upper hand. There will be an inevitable improvement in Scarlet’s exposure to potential customers as the innovative strategy also works in favor of time and finances. Evidently; when they realize that other hospitals do not offer these online services, they are bound to stick with Scarlet’s initiatives. Innovation, as one of Scarlet’s marketing strategies, sets it aside from other well-established hospitals in Salem. Indeed, innovation works as a marketing strategy that turns the table on Salem-based health care providers and improves its competitive marketing position. Timothy’s role as CEO is also highly appreciated in ensuring that Scarlet surpasses all the effort of other big hospitals in Salem. References
Porter, Michael E. 1998. Competitive strategy: Techniques for analyzing industries and competitors. New York: The Free Press.