Various organizations succeed in the industry in which they operate when they develop and institute succinct operations guiding its operations. Such strategies are marketing-based and are aimed at fostering the client's knowledge on the products offered. This study has centered on Sonic Healthcare, its marketing and positioning strategies, and the way it has succeeded in the healthcare industry. It is evident that strategies like acquisition of smaller players have enabled the company to be the leader in the industry.
Sonic Healthcare's Marketing Tactics And Strategies
Sonic Healthcare is a medical facility that offers diagnostic services. These include Pathology and Radiology. The company traces its roots back in 1992 when a young accountant, Michael Boyd bought into a small company that was at the verge of collapsing. He gradually increased his share ownership and later appointed Dr. Colin Goldschmidt, who is histo-pathologist to take charge of the company as the CEO. Sonic Healthcare took the pathological dimensions during this time. Ever since, the company has adapted several strategies that have propelled it to be one the leading facilities in the entire world. This paper seeks to explore some of the strategies used by this company.
Tactics / Strategies Relating to Marketing Mix
Product / Service related
Sonic Healthcare has a clearly defined niche of operations as a pathological and radiological Centre. The healthcare facility opted to concentrate on a narrow field of operation rather than adapt the integrative strategy that is now a trend in healthcare. In this, Sonic has successfully established itself as one of the largest diagnostic facilities in the entire world. Goldschmidt, the CEO of the company is quoted as referring to the company as medical diagnostic company (Jobson's Year Book of Public Companies, 1999, p.872).
6.1.2 Distribution related
Sonic has over the years managed to distribute its products effectively through acquisition of other related companies. In 1987, it began by acquiring Douglas Laboratories, which was a Sydney-based pathological company. Later on in 1999, Sonic acquired the Swiss company SGS's, which was an Australasian pathology business. In 2002, this company took a global dimension by acquiring United Kingdom's largest pathological company -The Doctor's Laboratory (TDL). In 2004, it acquired Schottdorf Group (Germany) before expanding to U.S. In 2005 through acquisition of Clinical Pathology Laboratories (CPL) Inc. (BRW, 2006. p.124).
6.1.3 Price related
The company has managed to set its prices successfully within the margins or relatively lower than its competitors. This factor is partly contributed by the fact that it is Medicare funded facility. In this view, the company can comfortably employ price leadership as at the same time maintain high quality services to its customers.
6.1.4 Promotion / communication related
The company has clearly avoided glitzy advertisement. Instead, it has used its highly qualified professional staff to communicate to the public of the quality of medical care they offer. Most customers who perceive the company to be focusing on service delivery rather than making profits have embraced this strategy.
6.1.5 People related
Sonic perceived its customers as medical profession unlike its competitors that perceive the public as its customers. In this strategy, Sonic has never ceased to acknowledge the role played by its own pathologists to the success stories.
6.1.6 Society related (e.g. corporate social responsibility and ethics)
The company management clearly emphasizes on the value of good will, healthy relations with its customers and other medical professionals, as well as the role of clean image. As a company, Sonic has never been linked to medical malpractices, which was a common phenomenon in pathology firms a decade or so ago.
6.2 Competitive Positioning
Sonic Healthcare has insisted on quality, innovation, and a business model that is unique over the years. This tactic has enabled the Australian-based company to expand its area of operation to become one of the most advanced and recognized healthcare facilities in the whole world.
The company has positioned itself competitively by utilizing the services of medical professionals in most of its activities. Currently, the company has employed more than 25, 000 employees, of which 500 are specialists in pathology and radiology. Furthermore, of this total number of staff, there are hundreds medical scientists and technicians.
The model of leadership as well as federation structure employed by Sonic has since served as bait luring high quality, similar-minded labs. The members of the Board of directors and most of the Chief Executive Officers in countries of operation are mainly doctors, including radiologists, pathologists and other specialists in the field of laboratory medicine (Jobson's Year Book of Public Companies, 1999, p.872).
The general CEO, Dr. Goldschmidt insists that the business hires specialist doctors, scientist, or managers who are also charged with the responsibility of running the activities of the company at various levels. Their deep experience in the medical laboratory industry gives them the company a competitive edge over their competitors.
6.3 Market Segment Strategies
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