Competitive Strategies for America Medical Center in the Health Care Industry

This presentation discusses the five generic competitive strategies that America Medical Center can use to compete globally in the health care industry. It covers low-cost provider strategy, broad differentiation strategy, best-cost provider strategy, focused strategy based in low costs, and focused strategy based on differentiation. Additionally, it explores foreign market entry strategies and the benefits of locating operations in advantageous nations. Special circumstances of competing in China, India, Brazil, Russia, and Eastern Europe are also discussed.

Introduction
America Medical Center (AMC) operates in the medical and health care industry
which is highly competitive. The top competitors of AMC in the industry are
America Medical Equipment, American Medical Endoscopy, Fresenius Medical Care
Corp and many others. The aim of this study is discussing the generic competitive
strategies that can help AC to compete globally.

Low-cost provider strategy
 Setting prices lower to those charged by the
competing firms while trying to attract and
retain customers.
 The strategy suits best in markets
concentrated of price sensitive consumers/
buyers.
 Special services and features that appeal to
customers must be included in company
products in order to win cost advantage.
Chapter 5: The Five Generic Competitive
Strategies

 This strategy produces a lasting and an
attractive competitive advantage when it is
based on technical quality, appeal of more
value for money, superiority, and offering
consumers quality support (Gouillart, 2014).
 It works best where various product and
services differentiation ways exist and these
differences have value to the buyer.
 Customer demand, needs, and uses of the
product in this strategy are diverse
Broad differentiation strategy

 A business realizes best-cost position from its
ability to incorporate upscale features at a
lower cost than competitors.
 The characteristics may be appealing
attributes, high product quality and
performance, and attractive customer
services.
 Works best in markets in which consumer
diversity create product differentiation norm
and where most buyers are sensitive to value
and price (Johanson & Mattsson, 2015).
Best-cost provider strategy

 Companies specialize more on service a
single portion of the entire market.
 Serving a narrow target market is more
efficient and rivals have no position in such
a strategy.
 Competitive edge is gained through
differentiation, lower cost in the market, or
the two.
Focused strategy based in low costs

 The strategy aims at securing a competitive
edge using a product offering designed
properly to appeal to the unique tastes and
preferences of the narrowly and well defined
target buyers.
 Works best under certain favorable market
situations such as having a wide target market
niche.
 Another condition is companies not seeing a
presence in the nice as crucial to their
success.
Focused strategy based on differentiation

Foreign market entry strategies
 Franchising medical and health care brands
 Partnering with health care companies from
other countries (Ang, Benischke, & Doh,
2015).
 Creation of joint ventures
 Buying a medical center in a foreign country
Chapter 7: Strategy Options-

 Improved customer base, brand image, and
awareness
 Optimization in the use of available
resources
 Surety of target market in a company’s area
of specialization
 Enjoyment of an excellent business
environment
Benefits of locating operations in most
advantageous nations

 Where learning new medical skills is
necessary
 Where a company is partnering with a
Medical Centre in one of these countries
 Where focused strategy based on
differentiation is the most suitable tactic to
use
Special circumstances of competing in China,
India, Brazil, Russia, and Eastern Europe

 America Medical Center should adopt a
focused strategy based on differentiation
given its uniqueness and ability to suit best
in securing a competitive advantage over
rivals in the international markets. This is
because the strategy uses product offerings
carefully designed to appeal to the
invaluable tastes and preferences of the
narrow niche of properly defined target
consumers.
Conclusion

 Ang, S. H., Benischke, M. H., & Doh, J. P. (2015). The interactions of institutions on foreign
market entry mode. Strategic Management Journal, 36 (10), 1536-1553.
 Arthur, H., (2011). Business Strategy - The Five Generic Competitive Strategies. Business and
Entrepreneurship. 2(3), 4-12.
 Gouillart, F. (2014). The race to implement co-creation of value with stakeholders: five
approaches to competitive advantage. Strategy & Leadership, 42(1), 2-8.
 Johanson, J., & Mattsson, L. G. (2015). Internationalisation in industrial systems—a network
approach. In Knowledge, networks and power (pp. 111-132). Palgrave Macmillan, London.
References