The New Strategy Place on Orthopaedic Product Group - Case Study Example

FormPrint Orthopedic Product Group FormPrint Orthopaedic Product Group Several regulations govern the American healthcaresector today. For the medical devices industries to thrive, they must conform to the stipulated healthcare laws. It means that the business has to realign its strategy to complement the government’s requirements. FormPrint Orthopaedic Product group is right in the middle of the legal framework. In implementing their Ortho500, the company’s new 3D printer system, they need strategic placement to enhance their success. The decision to diversify market segments comes with its individual liabilities. The paper presents the demands of the new strategy of the firm, the pros and cons of the available alternatives to meet the requirements, recommendations and the long-term implications. Demands that the New Strategy Place on Orthopaedic Product Group The Need for Specialisation The orthopaedic group can strive to be good in particular fields within their geographical region or nationality and within a particular area of concern that is vital for patients, payers. By so doing, it establishes dominance over competitors in such a niche. This can furthermore discourage competitors in such a fields. An orthopaedic group can also be the better option in a given service line area where there is a sustainable benefit. The group must not focus on being a cost leader. However, it has to normalize prices. It is a more profitable strategic alternative to aiming to become significant and dominant in a facet or to become so customer engrossed and thus spend a huge percentage of time and efforts focusing the organization on those efforts. However, existing strengths of the practice need exploitation. For instance, adding existing depth and power to your most dominant geographic or specialty area. Their goal would be to dominate in an area and not to sprinkle resources. For example, if the group has an excellent hand surgeon, it may add to this area, and both strengthen itself, discourage competition, and invest here. Similarly, if the group does well in spine treatment, it might make sense to attempt to develop a more dominant position in the spine and add revenue to the project. In addition, as the group develops critical mass, competitors get discouraged from attempting to allocate capital to compete in such areas. The implementation strategy needs a tool for use in evaluating practice options for growth such as the BCG matrix. It is a tool developed by the Boston Consulting Group; it divides entities’ offerings into four areas – stars, sources of income, dogs and question marks. FormPrint Orthopaedic Product Group needs an assessment technique for examining the areas adjacent to its strongest investment. Successful companies focus on reaching full potential in the core business, expanding into logical nearby business surrounding and redefine the core business in response to market turbulence. The companies should focus on strategy, competitive position, reinvestment rates, and execution. Identification of Revenue Sources The group can aligning resources to focus efforts on the primary service lines by deepening the strength in those areas while continuing to grow. Likewise, with the knowledge that the profitability of service lines changes over time, leadership needs to have a keen eye on the areas that have potential. They should then pick, and establish them with full capacity. Lastly, the team should spend very little time on those areas that generate low revenue hence not divert its time from its fundamental cash flow producing activities and high development potential areas. The Need for a Proper Marketing Strategy The group should adopt practices in its marketing strategy that keeps it less vulnerable to changes in hospital attitudes. Orthopaedic practices often draw patients from the public and from typical referral sources such as primary care physicians and hospital emergency rooms. Advantages and Disadvantages of the Choices Available for Meeting the Demand The Ortho500 printer, being the centrepiece in the strategic re-alignment of FP’s medical products business, it must get the support of the best strategies to ensure its success. Though there are many management options to support the plan, the prevailing market conditions may not be favourable. Therefore, the group faces several disadvantages and advantages in the course of settling on the best options for achieving its objectives in the line of the business venture. Pros of the Options Available for Meeting the Demand The section outlines the advantages of adopting the options described above. Greater profitability-the total number of customers served are likely going to increase, and this translates to higher turnover. The group’s earnings will increase steadily with the increment in the number of customers. Hence, there will be high profitability in the medical devices business. The option of specialisation and determination of the areas of greater efficiency, as well as diversification of services, has positive implications on the going concern of the Orthopaedic group. The option has the advantage of directing the efforts of production in the right area. Additionally, it will lead to the concentration of resources in the profitable areas. The management will also exploit the chance of recruiting the best management personnel in managing the new project. With all this extent of attention guaranteed, the management will have high chances of excelling in the project. Additionally, these advantages increase the competitive nature of the firm in the entire industry Cons of the Options Available for Meeting the Demand Though the available options may have numerous positive impacts, they also have underlying negative influences to the group. The section explains the probable disadvantages that may arise in the course of embracing the options available. The group’s efforts to reduce the various cost associated with the provision of goods and services relating to orthopaedics may result in further increase in the overall prices. These include total costs of initiating cost reduction measures. It could occur if the firm fails to undertake proper fiscal planning when diversifying into the new market niches. The venture under consideration involves the use of new technology. It is very advanced and may require a few specialists to operate. The increased use of technology so to improve the quality of services offered will lead to loss of job opportunities. Therefore, while installing the Ortho500 printer, they must ensure that create vacancies that they can reinstate the workers in case they become jobless. The suggestion will help reduce the rate of employee turnover and help safeguard the skilled workforce in the firm in the course of its expansion. Other marketing techniques also applied might have adverse impacts on the orthopaedic group products. These will also increase overhead expenses such as promotional costs. Therefore, the firm should take care in managing their expenditure in the course of embracing any option of diversifying into new market segments. Recommendations and Structure of the “go to market” Plan There are several suggestions that the firm should consider. These recommendations can shape the structure of the “go to market” plan. 1. The firm should grow the volume of market share and revenue by improving the quality of service delivery. 2. It is recommended that the firm’s administration should benchmark against the best performing industries so to rectify areas of weakness. 3. It is advisable to give patients positive reasons to talk about their experience with other people to market the orthopaedic group to the members of the technological arena. The recommendation will ensure that the patients engage in a process that promotes the services of the organisation without the firm formally relapsing funds to that effect. 4. The organisation should strive to be the best in the region by distinguishing itself as the preferred service provider. It can be done through offering of exceptional services in their field of specialization within the new market niches. 5. Create brand awareness through diversifying the services offered, and physician expertise. 6. The groups should consider enhancing or building a staff that is compassionate, friendly and caring. While diversifying to the new market, having a competent staff with the mentioned positive qualities is vital in attracting customers to explore the new printing technology. 7. The firm must consider increasing the patient admissions, volume and, ultimately, grow market share. The primary indication of growth in the healthcare devices industry is the number of patients served or the number of stock turnover. Therefore, after establishing itself in the new market niches, the management must weigh the options of expansion to increase the market share. Long-term Implications of the Recommendations The above recommendations have their short-term and long-term effects of the progress of the firm. Upon the implementation of the recommendations, the company will develop a positive attitude and good relation with customers that will enable the interaction between the two to go on and on for a long time with mutual benefits. The firm will also realize more profit and quality service delivery due to customer satisfaction motives that the firm shall develop. Awareness will enable every customer to have necessary information about service delivery before accessing the firm’s service. In conclusion, the provided option have disadvantages and advantages. However, the firm can ensure that it maximizes on the pros of the options to increase the chances of thriving in its new venture. As a firm in the medical devices, industry embracing new technology such as the Ortho500 printer in a new market zone is a stepping-stone. With the efficient utilization of the resources available, the FormPrint Orthopaedic Product Group will triumph in its new business environs. Read More