Quest Diagnostics' strategy and potential for global expansion

Quest Diagnostics is one of the leading companies that provide diagnostic testing, information, and services. The company has remained profitable across all its operations as shown in its increasing revenue growth over the years. One of the major factors that have contributed to the success and increased profitability of Quest Diagnostics is its strategy that is centered on patients, growth, and people (Quest Diagnostics, 2007). The firm\'s strategy is founded on the belief that providing an excellent experience for physicians, hospitals, and patients is the key to success in the more competitive business environment. Through this strategy, Quest Diagnostics has effectively distinguished itself from competition, created value for its various stakeholders, and experienced profitable growth.

However, Quest Diagnostics can enhance its profitability in the market through entering the global marketplace. Global expansion has emerged as an important strategy for businesses in the modern environment, particularly because of the intense competition. Businesses in saturated domestic markets or those in highly competitive markets are increasingly expanding into the global marketplace in order to enhance their competitive advantage and profitability. In essence, the three major reasons for expansion into global marketplace include enhancing cost-effectiveness of operations, increase customer base through attracting global customers, and expansion into new markets for new customers (Creative Commons, 2012).

Quest Diagnostics can become profitable in the global marketplace because of the various strengths that have contributed to its success over the years. One of the strengths that would make Quest Diagnostics a good entrant into the global marketplace is effective business strategy, which has acted as a pillar for the firm\'s growing reputation in the diagnostics industry. Secondly, the company would be a success in the global marketplace because of its diversification of revenue base or business, which is a major contributing factor to its market share and competitive advantage (Quest Diagnostics, 2007). Diversification of business provides a good platform for accelerating growth and promoting the success of a business in the global marketplace. The diversification also provides an opportunity for the company to continue increasing investments in its operations. Actually, through diversification, Quest Diagnostics is positioned for growth given that there are numerous opportunities in the diagnostics industry. The final strength of Quest Diagnostics that would make it a good entrant into the global marketplace is effective leadership that enables flawless execution of the firm\'s business strategy. Through the effective leadership at the company, Quest Diagnostics has achieved growth at the top and bottom and enabled the company to find measures to create value for its customers, shareholders, and employees.

While Quest Diagnostics has several strengths that would make it a good entrant into the global marketplace, success in this market requires the use of suitable strategies that promote growth and enhances its competition. The first process towards entering the global marketplace is for Quest Diagnostics to determine and prioritize countries to enter first. Given its strength of focusing on patients, people and growth, Quest Diagnostics should identify countries that would enable it to maintain its strategy. This would require conducting a PESTLE analysis of the marketplaces in these countries to determine the one with suitable market conditions for its operations. This would be part of international market due diligence to examine the size, cost of operations, accessibility, and buyer needs/practices within a foreign country (Creative Commons, 2012). Secondly, Quest Diagnostics should conduct a thorough analysis of the diagnostic industry in the foreign country to understand the existing competition and buyer needs. Once these processes have been carried out, the company should utilize its strength of effective leadership to determine suitable ways for creating value for the various stakeholders within that market. This will also entail diversification of products and services towards creating value proposition for the buyers in the foreign market.