¶ … Downtown Health Clinic (DHC) has enjoyed a relative monopoly on the inner city ambulatory and employment-related health care, and has served a dedicated market. As the MedCenter threatens to encroach on DHC's territory, DHC must adopt a new and aggressive marketing strategy.
Situation Analysis
Strengths
DHC is currently the only ambulatory health care center in the downtown core and therefore its brand is familiar to local consumers and downtown businesses.
In addition to serving the needs of local walk-in and emergency clients, DHC has attracted a range of patient referrals from local businesses in need of worker's compensation and employment-related health care examinations.
Sherri Worth, the Assistant Administrator of DHC, is motivated and willing to make necessary changes to ensure the future success and growth of DHC.
Weaknesses
DHC has yet to embrace a clear marketing strategy and has in fact shied away from using marketing as a tool.
DHC's business and personal clients are expressing discontent already, and are requesting what could be costly changes in service delivery. Those changes include expanding range of services and extended hours of operation.
3. MedCenter has is addressing the needs of two distinct target markets (employers and their workers as well as indigent downtown residents) instead of focusing on one.
Opportunities
1. DHC can transform its pre-existing relationships with city businesses and institutions into contractual ones.
2. DHC has the opportunity to use MedCenter's resources to its advantage by forcing its competitor to focus on walk-ins and other less lucrative clients.
3. DHC has a short window of opportunity with which to establish brand recognition and solidify relationships with current clients.
Threats
1. DHC has little time with which to address its weaknesses and to develop a marketing campaign because MedCenter has already begun the process of surveying local markets.
2. MedCenter has a strong and established brand recognition, especially among suburban clients. Thus, individual employees working downtown are likely already aware of and possibly already use MedCenter at one of its other locations.
3. MedCenter is an established business, a marketing savvy medical services company that can easily steal clients from DHC. For example, MedCenter is likely to use targeted advertisements and superior branding strategies.
Identify Alternatives
1. DHC can wait for MedCenter to make the first move before deciding on a clear strategy for the future.
Pro-a. Waiting would allow Worth to focus time and resources on addressing the changing needs of clients before worrying about marketing concerns or the threat of competition.
b. Waiting for MedCenter to make the first move would allow Worth and her colleagues to understand exactly what their marketing strategy should be, based on MedCenter's approach.
Con a. MedCenter's aggressive marketing and branding strategies almost guarantee that MedCenter and not DHC will be attracting new clients. DHC would then face the problem of relying solely on a finite clientele.
b. The window of opportunity to create brand recognition and to improve the image of DHC in the community is a small one, as MedCenter is likely to act fast.
2. DHC can mimic MedCenter's business model by hiring a marketing specialist, funneling funds almost exclusively toward the encroaching threat.
Pro-a. A brutally aggressive marketing strategy may seriously hinder MedCenter's efforts to attract downtown and business clients, and may even scare away MedCenter entirely.
b. A more aggressive marketing campaign would be an investment in DHC's future because it would establish the company's brand as the number one downtown ambulatory services center. The threat of competition from companies other than MedCenter would be less likely too.
Con a. DHC would be unable to invest in much-needed upgrades to its medical services and would be less likely to offer the extended hours clients are calling for. Thus, the plan could backfire and cause DHC to lose clients.
b. DHC risks losing its reputation, which Worth built as a medical center that did not resort to what she called "crass commercialism," (p. 200).
3. DHC can address both the needs to improve medical services and the need to aggressively market to potential and existing clients.
Pro-a. The middle ground engenders trust among existing clients b. The extension of hours and services is likely to attract new clients before MedCenter lures them.
Con a. DHC may not invest fully enough into its marketing strategy to successfully stave off MedCenter's threat.
b. DHC risks losing clients after investing substantially in the improved services.
Recommend and Justify Alternative
Clearly, alternative #3 is the best method to address DHC's needs. However, DHC must hone its marketing strategy to (a) preserve its reputation as a quality of care center and not as a "crassly commercial" one; (b) secure relations with existing clients using contractual agreements if possible; and - establish solid brand recognition as the leading ambulatory health care center for the downtown area. Worth must mobilize her current administrative staff, keeping extraneous costs to a minimum during this difficult but brief transitional stage.
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