An expansion of scope means the expansion of an organization’s ability to go forward and expand their functions to several other activities. Once they have achieved a certain amount of success in one, they go into another function. It is imperative that an organization gets back to expansion of services strategy in the right industry where they feel their competencies would be suitable for the business. It presents them the opportunity to do well, particularly when they have an organized system to administer several business activities. It helps them increase their turnovers and in today’s competitive market, every organization would want to enter into all offered prospects. Services are one of the utmost important competency that separates one organization from another.
With different choices of available product, it is the service that benefits them stay in the market and also keep customers. Diversification strategy entails rising of company’s business by evolving new products for new markets. It can be classified into concentric diversification and conglomerate diversification. Concentric diversification means diversify business by enhancing or adding related products to the existing line of products. It can be marketing related or technology related concentric diversification. Conglomerate diversification includes taking up those accomplishments which are unrelated to company’s core business.
Mergers and acquisition as a market entry strategy means acquiring other company or merging operations with other company in order to lessen risk and increasing the market power. It helps to use all company’s resources. When we combine both the strategies we can get that our strategy would be diversification through acquisition. It benefits by increasing the productivity of the capital of the companies merged. Knowledge and skills of one company is join to the problems and opportunities of other which then lead to higher profits. Diversifying the business through acquisition will lead to reduction in average cost resulting from economies of scale thus posing a better price for customers which eventually result in interesting more and more customers.
Organization culture includes beliefs, norms and values of a healthcare organization. It sets the basis for strategy. For a strategy for successful implementation it needs to fully align with health care organization culture. Goals and objectives of organization need be established in accordance with organizational culture which further supports strategies. A company’s capacity to quickly and effectively execute business strategy is, in itself, an advantage competition differentiator, one that is linked with positive market performance. It’s projected that more than 60 percent of strategies are not productively implemented. In many cases the problem can be associated to the fact that the implementation of strategy is not supported by the culture of the organization. When companies get the culture right by supporting it to the strategy, there is a much greater rate of accomplishment than when culture is not aligned to strategy. Culture and strategy are inseparable. Organizational culture cannot be unattended.
Positive-sum competition occurs between the providers of the health services where each try to beat the other and provide better services. Hospitals do not have to offer all medical services but can specialize in one area. The value of this type of competition is that it helps hospitals to invest more in their field of knowledge, therefore, can get to more quality and efficient services. Providers would have to charge the same fees to different patients regardless of their insurance providers.
Though there is no win at somebody else’s expenditure but because of Win Win situation organizations can have some monetary benefits. This type of positive sum competition is very helpful for organization in today’s global market. A Positive-sum competition in which the reimbursements to the players may increase more than 0, so that it may be conceivable for all players to gain. Such type of positive sum competition helps to organizations in case of very tough rivalries. At least some of part of the total deals can be provided by organizations. This type of competition is used where the products are of mutual category or same outline. Because of such positive sum competition customer can get value in terms of better quality, choice, price reduction and even flexibility. When two competitors both gain financially by contributing in a contest, no staple who wins or loses. Positive-sum competition consequences occur in examples of distributive bargaining where distinct goods or services is sold so that everyone’s needs are met.
The product life cycle is a process used to develop strategy alternatives built on the principle that all goods and services develop through different stages; introduction, growth, maturity, and decline with alike activities occurring during every stage; typically, graphically portrayed. Product life cycle shows strengths and weaknesses of each stages. In the introduction stage, it has the weakness that it experiences high cost but the strength of growth stage is to increase the profit at quicker growth rate. It will cause company to increase market share. In maturity stage, there is strength in consolidation of profit at low cost.
Consequently, bottom line of the company increases. In decline stage has the sales lower and company has to come up with new product to maintain high course of growth in revenue. Product life cycle gives reasonable idea about the strategic approach to be taken to prolong the different stages of Product Life Cycle so that higher revenue at low cost can be attained Adaptive strategy is used to indicate the product scope, market expansion and other appropriate strategy to support advancement in the market. To make adaptive strategies effective, Product life cycle states about the stage of life in which a product is being sold. It helps adaptive strategies improve the expansion plan in terms of promote a new product, removal of old product, rise in marketing operation and or change in other marketing strategies.
