Scarlett Hospital SWOT Analysis

1683 Words 7 Pages
Stopping Outshopping
Scarlett Hospital is the only available hospital in the Walnut Grove community consequently, focusing on competition was a nonexistent matter. They were able to monopolize the health care sector in this region since they were the only easily accessible hospital in the area. A new development has caused concern for the hospital since building a new highway poses a potential quandary for hospital, since this will allow consumers the choice to seek care at other organizations within a reasonable distance. Historically the primary focus was on providing extraordinary patient care conversely now they are faced with retaining consumers and not losing them to a larger market in Salem. The President and CEO will have to redesign
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Health care marketing: Tools and technique states that “According to Porter, the nature of competition in any industry is based on five forces: existing, competitors, potential entrants, substitutes, suppliers, and buyers” (Fortenberry, 2010). The Porter and the SWOT analysis are both valuable tools that will be able to provide insight on the Scarlett Hospital competition. Identifying the competition is the first step this allow them to understand their opponents. Subsequent to identifying their opponents gathering data to evaluate the hospital current weakness and threats to make all necessary adjustments. The hospital weakness is that they have limited experience in competing with other institutions which can become a chief issue in regards to marketing. A major threat that they face it the potential to ultimately lose consumer to outshopping and the consumers choosing to receive care in Salem rather than Walnut …show more content…
Scarlett hospital management team failed to communicate about potential competition until they were faced with the matter. Once the highway plan was in place it was then that the hospital began to communicate about the upcoming changes which may leave them unprepared for such a drastic change. An article in Journal of Industrial Engineering states that “In recent years, some hospitals and clinics have started using a management tool called the Balanced Scorecard (BSC) to monitor operational metrics in the organization along with health outcome metrics. BSC is recognized as an important management tool for 21st century companies” (Emami, & Doolen, 2015). This is a vital tool that should be used by the hospital immediately to improve their

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