SWOT Analysis for RAS Medical

SWOT Analysis: RAS Medical Systems
History
RAS Medical Systems, Inc. is a small, independent distributor of physical rehabilitation equipment and supplies in the New York, New Jersey and Connecticut area. The company was founded by Richard Silverstein in the 1980s, employs a dozen workers, and has introduced a number of new and innovative devices into the rehab market over the years, including Outcomes based Modalities such as OmniSound U.S./P.E.N.S. and Low Level Laser Therapy. Since 1989, RAS Medical Systems has been a Medicare participating partner helping to provide patients with the state-of-the-art equipment and third party billing to Medicare as well as many other insurance companies. Since 2009, RAS Medical has also been accredited by the Compliance Team (RAS Medical Systems, 2018).
Strengths
· Family-owned business: strong values, principles, and mission with a community-friendly approach to business
· Strong geographical location with high traffic input
· Customer satisfaction: customers do say they like the service and give positive word of mouth by recommending the company to others
One of RAS Medical Systems’ main strengths is its organization as a family-owned business with ties to the community that go back for generations. In an era of globalization and corporate takeovers, RAS provides a traditional solution to customer needs in the rehab market. Its values reflect the principles and expectations of the community and in this regard it has what could be called a strong corporate social responsibility policy to serve the interests of “social, environmental and economic environment in which” RAS operates (Castka, Bamber, Sharp, 2005, p. vii). Its performance in the community is at a high level with visibility resulting from an optimal location, excellent customer service, and a strong reputation that stems from its family-oriented approach to business.
Weaknesses
· The staff works in silos: everyone works individually instead of working as a cohesive, organized unit.
· Outdated technology: an inefficient record maintenance system is in place.
· Lacks the budget for marketing: RAS does not pay much attention to marketing and is dependent wholly on word-of-mouth and website traffic.
Because the small staff works in silos, with everyone operating individually and away from one another, there is a lot of disorganization where there should be structure, cohesion and communication (Quirke, 2017). Many claims are denied due to late submissions of documents or incomplete documentation, which stems from the staff’s disorganization and lack of effective communication. Additionally, the staff relies on outdated technology that is not attuned to the Digital Age and lacks a budget to effectively market itself. Thus, it remains in a mid-tier range in terms of market performance and is not poised to grow in the near future.
Opportunities
· Experience and reputation as the foundation for growth: RAS has decades of experience in the rehab market and could use its knowledge of the field to take the business to the next level.
· Internet as a marketing tool. Take advantage of the increasing use of social media for marketing.
· Increasing demand for products or similar merchandise.
· Bring in new technology: a more efficient ERP system or patient management system.
· Partner with local hospitals and doctors.
RAS has a strong reputation among customers and clients and a lot of years of experience in the industry. It can use this to grow to the next level. To get there, it can embrace the Internet as a marketing tool and utilize social media platforms to expand its brand visibility. The market is growing and RAS is in a prime position to capitalize on the increasing demand for the types of products it distributes. New technology and a better ERP system to digitally manage records would help, and so too would developing partnerships with local hospitals and physicians to builds its client base.
Threats
· A lot of competitors in the market with similar products
· Website is not very user-friendly: The Internet offers many other options for browsers looking for a streamlined interface
· Receipt of payment highly dependent on approval of patient’s insurance claims
The competition in the rehab market has increased with the rise in demand for rehab products and equipment. Several big competitors have a sizeable hold on market share and could squeeze out smaller family-owned businesses like RAS in the future if RAS does not maintain customer loyalty. Additionally, today’s Digital Age places demands on businesses—namely that they have a strong web presence, which RAS currently does not have because of a poorly designed website that does not receive effective maintenance. With many of today’s web browsers using social media platforms like Facebook and YouTube to obtain information about what is available in the market, RAS has to better position itself to respond to changes in how customers obtain data when making purchasing decisions. Finally, RAS still depends on the approval of patient’s insurance claims before payment can be processed and this can take a considerable amount of time and serve as a drain on the company’s resources.
Conclusions and Future Study
RAS Medical Systems is a small, family-owned physical rehab product distribution company that is in a market where rising demand is raising meeting the increased level of competition. The company’s reputation among customers is strong but in order to grow and stay competitive it must make some changes to its internal organization so that there can be better record keeping, more efficient communication, and more cohesion. Externally, it faces pressures from bigger competitors, advances in digital technology that require RAS to develop more of a web and social media presence, and long waits in collecting payments from insurers. RAS has the opportunity to grow but must update its records keeping system, develop a more engaging web presence, and focus on building partnerships with local and regional health care providers in order to secure business ties for the future.
Action Steps and Recommendations
Step 1
The staff should be better organized with all employees working together in the same room as a unit to facilitate communication and cohesion. The rationale for this step is that with employees separated and independent from one another, information is not shared effectively and orders get lost, misplaced, or forgotten. This step can be inexpensively implemented by rearranging the main silos so that they consist of an open floor plan.
Step 2
Update to an electronic record keeping system that allows workers to use cloud technology. The rationale for this step is that currently record keeping methods are outdated, on paper, and do not facilitate quick processing. They can be too easily removed or lost. Implementing this step would simply consist of replacing the old system with new software and entering the old data into digital files.
Step 3
Update the website and develop a social media presence to facilitate better marketing. The rationale for this step is that social media and websites are how today’s customers shop and obtain data when making purchasing decisions (Lake, 2017; Li, Robinson & Oriade, 2017). This step can be implemented by hiring a web designer and social media employee to continuously engage with the online community.
Step 4
Partner with local health care providers. The rationale for this step is that in developing partnerships, RAS can increase its visibility and ensure that business continues to flow in its direction. This step can be implemented by having a sales team make pitches to the various health care providers in the region to show them why a partnership makes sense and how RAS is a trusted provider of top-of-the-line equipment that patients can benefit from.
References
Castka, P., Bamber, C., Sharp, J. (2005). Implementing Effective Corporate Social
Responsibility and Corporate Governance: A Framework. UK: British Standards Institution.
Lake, L. (2017). Understanding interactive, digital, and Internet marketing strategies.
Retrieved from https://www.thebalance.com/types-of-marketing-strategies-2295338
Li, S., Robinson, P. & Oriade, A. (2017). Destination marketing: The use of technology
since the millennium. Journal of Destination Marketing & Management, 6(2), 95-102.
Quirke, B. (2017). Making the connections: using internal communication to turn
strategy into action. New York, NY: Routledge.
RAS Medical Systems. (2018). About us. Retrieved from
http://rasmedical.com/create-an-account/