Adaptive, Market Entry, And Competitive Strategies In The Health Care Industry
6. A. Directional, Adaptive, Market Entry, and Competitive Strategies
Directional strategy is defined as the game plan employed by an organization to grow its …show more content…
Adaptive strategy differs in that they are modified by externally induced innovations as well as coping strategies and arise from mutual interdependence and dynamic interaction between the environment and the organization. During the recent economic crises, most health care organizations applied adaptive strategy by cutting costs and staff to stay competitive.
Market-entry strategies focus on gaining an in-depth market understanding in order to venture into a new market. They differ in the way they are conducted as the organization has to conduct interviews for decision-making. A heath care institution may apply a market-entry strategy to gain a thorough understanding of the key factors and possible scenarios that would influence their business in future, and an understanding of the market potential.
Competitive strategies are used to by organizations to gain a competitive advantage over their rivals. They differ from the rest of the strategies for they are applied in a combination of two or more strategies, which are, focus, differentiation, and cost leadership strategies. An organization may apply a competitive strategy by lowering the cost of its health care services to patients to gain a competitive edge over its …show more content…
Trying to expand an organization’s operations may work against the cost leadership strategy as an organization seeks to keep its costs below the competition levels thereby making it hard for the management to control. A health care organization may outgrow its business models thereby watering down the projected annual budgets and costs thereby exposing itself to risks of insufficient operating capital and thus being unable to put up with competition. Cutting costs may also derive employees off incentive programs thereby lowering their morale. These challenges can be mitigated through seeking employee feedback on how to improve their morale and acquiring technologies that reduce staff fatigue. An organization may also use price differentiation for different market