Strategic Management Assignment – Quest Diagnostics

Added on - 28 May 2020

  • 14

    pages

  • 3920

    words

  • 5

    views

  • 0

    downloads

Showing pages 1 to 4 of 14 pages
Strategic Management – Quest Diagnostics0|Page
Table of ContentsIntroduction.................................................................................................................................................2External Analysis........................................................................................................................................2Porter’s 5 Forces......................................................................................................................................2PESTLE Analysis....................................................................................................................................3Internal Analysis..........................................................................................................................................5Porter’s Value Chain...............................................................................................................................5Porters Generic Strategy..........................................................................................................................7Core Competencies..................................................................................................................................8Asimov....................................................................................................................................................9Conclusion.................................................................................................................................................10References.................................................................................................................................................111|Page
IntroductionQuest Diagnostic is the leading provider of the diagnostics services as well as the solution in theUnited States. The organization was founded in the year 1967 with the name of MetropolitanPathology Laboratory, but in the year 1996 it became public and was renamed Quest Diagnostic.The vision of the firm is to empower better health along with the diagnostic insight. Theorganization also have three goals, and they are; help in the creation of the healthier world, thecreation of the inspiring work and building the values. The new strategy of the firm is to giveexcellence in work every day. The organization generally offer 3000 diagnostic tests which rangefrom a simple blood test to the gene-based as well as molecular testing. The organization alsooffer the one-stop shop for the diagnostic test at the minimum price. The human resources of thefirm are almost 43,000 people, and 74% of these employees are frontline workers. The purposeof the paper is to analyze the external and internal working function of the firm. The detaildiscussion on Porter’s five forces, pestle, and porter’s value chain, Porter's generic strategy, corecompetencies and Asimov analysis will be provided within the paper.External AnalysisPorter’s 5 ForcesPorter's five forces are the simple but the powerful tool that helps in understanding thecompetitiveness of the business environment. In this five industry forces is being utilized for thedetermination of profitability level as well as competition within the market.2|Page
Figure 1: Porter’s 5 Forces ModelA threat of new entrantsThe threats of new entrants in the field of medical laboratories as well as research help to bringinnovation to the market (Hamdan, 2017). The organization LabCorp with their suitable pricingstrategy and their innovative value proposition to the customers create the threat of new entrantsto Quest Diagnostics.Supplier powerQuest Diagnostic have numerous suppliers, and for that, they do not possess the power ofsupplier for their profitability ratio(Kay, Porter, Youtie, Newman, and Ràfols, 2017). This is thebasic facts that the supplier could not increase their price and the raw materials collected by thefirm are of best quality with suitable cost.Buyer powerBuyers have the considerable power to impact the cost strategy of the firm as they have theoption to get the services from other medical laboratories. In this case, the biggest competitors ofQuest Diagnostics that is LabCorp is the primary reason that causes huge buyer power for thefirm within the market.Threats of substitutesThe threat of substitute within the market is also high as LabCorp also provides the same type ofmedical test and services to the customers. People have the suitable and effective option to gettheir service from a different organization which ever suits them according to their choice(Jenkins, and Taylor, 2017).Competitive rivalryThe primary competitor of the firm is LabCorp who have won over the United HealthcareInsurance who is the key customers of Quest Diagnostics. The organization has 39 laboratoriesas well as 1750 centers of patient service in 60 counties.3|Page
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Unlock This Document