Competitive advantage and strategic partnerships for new healthcare companies

Strategic management in healthcare (Discussion questions)

First student

When launching a new product, the emergent company in the case study must first identify product strengths and weaknesses; evaluate competitive strengths and weaknesses; and focus on competitive strengths and weaknesses to leverage these factors to its advantage. Especially in a competitive marketplace like healthcare, it is absolutely critical that the new company offer a product with genuine novelty. Even when marketing to businesses, this is essential. "A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself" ("Competitive advantage," 2014). However, to capitalize upon a competitive advantage, a company must be able to communicate this to its customers. This requires a competent sales and marketing staff.

While wishing to keep as many functions 'in house' as possible is understandable for the architect of a new company, it is often necessary to look outside for professional, experienced individuals in this field, particularly if the company is a small start-up. The individuals who gave birth to the company may not necessarily have the professional expertise necessary to fulfill this critical function. However, some believe that sales and marketing should never be outsourced. "Entrusting your sales to an independent rep essentially means allowing your product to be presented as one product among many. An independent sales rep rarely carries a single line of products. Every time he calls on a customer, he will focus his sales pitch on the line that is the easiest for him to make money on -- and it may not be yours" (Nornberg 2014). The advantage to not outsourcing is the ability to leverage creative control over one's output and to ensure that the brand identity is consistent with the original intentions of the company's creators. Even highly professional content is not effective if it is not part of a company's crafted and consistent brand image.