Hamilton Family Dental: Current Market and Strategy Report

This report provides a comprehensive analysis of Hamilton Family Dental's market position within the New Zealand dental care sector. It begins with an executive summary, outlining the use of Porter's Five Forces and SWOT analysis to identify key factors influencing the business. The introduction highlights the increasing importance of diverse marketing strategies in the current business environment, particularly within the healthcare sector. The report then delves into Hamilton Family Dental's current market standing, its service offerings, and its competitive landscape, identifying key competitors like Swanson Dental and Auckland Regional Dental Service. The core of the report examines the industrial position of Hamilton Family Dental using Porter's Five Forces, assessing the threats of new entrants, substitutes, and the bargaining power of buyers and suppliers, as well as competitive rivalry. A SWOT analysis is then conducted to evaluate the company's strengths, weaknesses, opportunities, and threats. The marketing strategy of Hamilton Family Dental, primarily involving social media, is evaluated. Finally, the report recommends market development and business diversification as strategies for enhancing long-term business viability, along with a differentiated approach. Key performance indicators are also discussed to help monitor and evaluate business performance.

Executive summary
The aim of this report is to discuss the current position of Hamilton Family Dental in their
home market. In doing so, Porter five forces and SWOT analysis are being used to
identify the key factors. It is identified that currently Hamilton Family dental is having
competitive positioning in the market but is increasingly being challenged by the rising
competition. In addition, this report had also discussed about the current market
strategy being used by Hamilton Family Dental and it is identified that they are following
social media marketing. On the basis of gaps identified, this report recommended that
market development and business diversification will be best two strategies for Hamilton
Family dental in enhancing their long-term business viability along with the differentiated
approach.
Introduction
In the current business scenario, it is important for the contemporary business
organizations to initiate diverse marketing strategies and consider different business
factors. This is due to the reason that current business scenario is much diverse and
complex than ever, and contemporary business organizations will have to consider
different factors in maintaining their competitive advantages. Medical care facilities are
becoming a potential business sector in recent time with offering different healthcare
services. This trend is evident worldwide and is New Zealand is no exception (Clifford et
al., 2015). In New Zealand, Hamilton Family Dental is one of the leading dental care
establishments with offering holistic dental care treatment in the cost effective way. It is

identified from their official service portfolio that Hamilton Family Dental is offering
majority of the dental related services. as of now, they are only having their presence in
Hamilton and is planning for expansion across the country and global in the later stage.
According to the official reports of Hamilton Family Dental, it is identified that Hamilton
Family Dental is positioned as cost effective and quality dental service provider. This is
helping them in gaining competitive advantages because majority of the well-known and
quality dental care services are charging premium. In addition, Hamilton Family Dental
is also offering the convenience of having entire dental care services under one roof. In
terms of the competitors, there are number of dental care providers operating in the
same market such as Swanson Dental, Westport Dental clinic and Auckland Regional
Dental Service. Each of these services are offering dental care but is mainly
differentiated based on quality, cost and holistic service portfolio. However, it should
also be noted that even if Hamilton Family Dental is better positioned in the market;
increase in the competition will pose long term concerns for them. In this case, they are
having the need for effective determination of their existing approaches and initiate the
new strategies accordingly.
This report will discuss about the current position of Hamilton Family Dental in the
market along with identifying the threats and opportunities being faced by them. This
report will also discuss about the marketing strategy being followed by them. On the
basis of the identified shortcomings, a few recommended steps will be discussed in
order to tap opportunities in the later stage. Key performance indicators will also be
discussed to help Hamilton Family Dental in monitoring and evaluating their business
performance.

Determination of the industrial position of Hamilton Family Dental
Threat of new entrants
It is identified that Hamilton Family Dental is facing higher sets of threat of new entrants
due to the reason that dental service can be offered in locally and with low cost of
investment. This is due to the fact that dental clinic can be started in small scale and
small accommodation. Moreover, it should also be noted that legal formalities are also
low in the case of starting health care services because legislations towards starting a
medical or healthcare service are low compared to other business sectors (Nash et al.,
2014). Hence, Hamilton Family Dental is facing the challenges of new entrants. In this
case, the current market position of them is competitive due to the reason that new
entrants will not be able to gain the identity as Hamilton Family Dental. In addition, the
new entrants are not capable enough in matching the service portfolio of Hamilton
Family Dental.
Threat of substitutes
Threat of substitutes is also high for Hamilton Family Dental because there are number
of similar service providers operating in the market. The average price point is also
similar and in the same level. Thus, the point of differentiation is less between Hamilton
Family Dental and their competitors. It is also identified that the position of Hamilton
Family Dental is competitive among the competitors due to their two ways approach.

This is due to the reason that they are offering both cost effectiveness and quality
service contrary to their competitors. Positioning of Hamilton Family Dentalon the basis
of both service attribute and cost is helping in dealing with the threat of substitutes.
Bargaining power of the buyers
Bargaining power of the buyers for Hamilton Family Dental is high due to the reason
that they are having number of options in choosing the dental services. In this case,
effective determination and fulfillment of the expectation and requirement of the target
customers will affect the bargaining power of the buyers. Hamilton Family Dental is
competitive enough in influencing the bargaining power of the buyers. In the current
business scenario, cost effectiveness is the key to attract the customers. In addition to
that, the holistic and diverse services offered by Hamilton Family Dental are helping in
gaining the competitive market position (Devaux, 2015). However, on the other hand, it
should also be noted that the recent market analytics denotes that new customer
acquisition rate is getting lowered because of the increasing competition and not coping
up with the expectations of the beneficiaries. Thus, bargaining power of the buyers is
increasing.
Bargaining power of the suppliers
Bargaining power of the suppliers for Hamilton Family Dental is low. This is due to the
fact that they are less dependent of on the external sourcing. The dental equipment’s

are one-time purchase and there are multiple suppliers operating in the market. In
addition, the medical suppliers are not having forward integration and thus Hamilton
Family Dental is enjoying upper hand in this case (Chao et al., 2013).
Competitive rivalry
Competitive rivalry for Hamilton Family Dental is high due to the presence of number of
players in the market. Evidence of price war between the dental care services is also
denoting the fact that competitive rivalry is high. It is also identified that the competitive
position of Hamilton Family Dental is losing with the emergence of new competitors. It is
also affecting the rate of new customer acquisition for Hamilton Family Dental. Hence,
there are number of areas of improvement for Hamilton Family Dental identified
(Haynes, 2013).
Determination of the market position of Hamilton Family Dental
Prior to the analysis of the effectiveness of the business of Hamilton Family Dental, it is
important to identify their current market and industry position. This will help to have the
understanding about the positive and negative factors associated. In this case, SWOT
analysis will be used. The following sections will discuss and analyze each of the
elements of the SWOT analysis from the perspective of Hamilton Family Dental.
Strengths
One of the major strengths of Hamilton Family Dental is their high level of customer
retention. This is due to the reason that according to the business analytics, 85.6
percent of the customers for Hamilton Family Dental are returning while only 14.4

percent constitutes the new segment. This only denotes that Hamilton Family Dental is
offering services according to the expectations and requirements of the target customer
segments and well fulfilling them. This is also ensuring the emergence of positive word
of mouth in the market. Another major strength of Hamilton Family Dental is cost
leadership approach. This is due to the fact thataccording to their official website, cost
effective services are being offered by Hamilton Family Dental. It is ensuring the larger
target segment customers for Hamilton Family Dental. Another strength of Hamilton
Family Dental is the holistic and diverse service portfolio (Chia, Densie,& Morgan,
2015). Ranging from regular dental checkups to root canal treatment, they are offering
all, which is helping to cater to larger section of the customers in the market and adding
value to the customers.
(Google Analytics, Hamilton Family Dental, 2019)

Weaknesses
One of the major weaknesses identified for Hamilton Family Dental is in terms of new
customer acquisitions. This is due to the fact thatin the above section, it is discussed
that more than 80 percent of the customers of them are returning and percentage of the
new customers is low. This denotes that marketing strategy of Hamilton Family Dental is
not effective enough in tapping the new market segments. One of the probable reasons
for this is the limited market presence and Hamilton Family Dental is only having their
operation in one location across New Zealand. Business analytics also stated the
average users for them are reducing. For instance, it is identified that user level at April
2019 is higher compared to the user base in July 2019. This is also denoting the
ineffectiveness of the marketing activities of Hamilton Family Dental. Low penetration
among the female customers is also a major weakness for Hamilton Family Dental
because it is identified that only 24.2 percent of the total customer base is constitute of
the female customers. Hence, it can be concluded that the existing marketing activities
of Hamilton Family Dental should be improved.
Opportunities
In terms of the opportunities, it is identified that Hamilton Family Dental is yet to value
the national market. Thus, they will find more business opportunities in increasing their
presence across New Zealand. Hence, it can be concluded that major opportunities for
Hamilton Family Dental will be based on the market expansion. On the other hand, it is
also identified that Hamilton Family Dental is having low probability of further service

development due to the reason that they already offering diverse set of dental care
services and offering those in the new market regions will be beneficial in getting new
opportunities. The flexibility of the payment factor, (apart from Q- card, ACC and WINZ
quote) will also play an important role in tapping new opportunity. For example, there
are customers who will find it more convenient in paying the price in installments so they
can Thus, the market penetrating opportunity is more for Hamilton Family Dental.
Threats
One of the major threats identified for Hamilton Family Dental is the increase in the cost
of the internal cost. It is reported that price of the dental equipment is constantly
increasing along with the increase in the cost of medical service is reducing the profit
margin for Hamilton Family Dental. In addition, the end cost cannot be increased
considering the increasing competition in the market. Hence, Hamilton Family Dental is
facing the challenge of reducing profit margin in their operation. On the other hand,
increase in the level of competition will also be challenging for Hamilton Family Dental
as the more will be the competition, the lower will be the market share for them. In
addition, the price war between the competitors will further get intensified with the entry
of new competitors. In this case, it is important for Hamilton Family Dental to maintain
and enhance their distinctiveness in order to fend off the competition.
Evaluation of the marketing strategy of Hamilton Family Dental

In the above section, the current competitive position of Hamilton Family Dental is being
identified and now it is important to identify the marketing strategy being followed by
them. On the basis of the business activities promoted through their online mediums, it
is identified that they are following online strategy involving the social media. This is due
to the reason that majority of the promotion of Hamilton Family Dental are being done
through the online mediums. Furthermore, the customer engagement activities of
Hamilton Family Dental are done through social media platforms (Ashley &Tuten, 2015).
The home page of the official website of Hamilton Family Dental shows the unique
selling proposition of them along with the feedback shared by the patients. This denotes
that online marketing strategy is being extensively followed by Hamilton Family Dental.

(Google Analytics, Hamilton Family Dental, 2019)
The major advantage that is being gained by Hamilton Family Dental is cost
effectiveness. This is due to the reason that promoting through the online mediums
incurs less cost compared to the traditional mediums. Thus, Hamilton Family Dental is

saving cost in terms of their promotion and marketing. On the other hand, customer
engagement is being initiated through the social media platform. Hence, patients of
Hamilton Family Dental are being able to communicate directly and in more
personalized manner. All the services offered by Hamilton Family Dental are
communicated and promoted through the social media platforms and feedback received
from the external stakeholders and on the basis of these feedbacks, service approach is
designed (Felix, Rauschnabel&Hinsch, (2017). This is contributing in the service
process development for Hamilton Family Dental and helping in becoming a more
customer centric organization.
From the above Porter five forces analysis, it is identified that Hamilton Family Dental is
facing both challenges and opportunities. One of the major positive factors for them is
low influence of the suppliers. Thus, the extent of the external stakeholders’ influence is
also low. In addition, the distinctive business approaches of them are also effectively
fending off the competition. On the other hand, Hamilton Family Dental is also facing the
challenge of emergence of new entrants due to lower entry barriers. Moreover, the
threat of substitutes is also high for them with each of the competitors is offering same
dental services. In terms of this external situation, Hamilton Family Dental is positioned
as a holistic service provider and established player in the market. However, the limited
market presence will restrict them in dealing with the countrywide competition.
It is also noted that initiating the social media platforms is showing high level of
engagement as shown in the business analytic report. The high level of engagement
also denotes that target customers are getting satisfied with the online marketing
strategy of Hamilton Family Dental. However, the market exposure is still limited and

restricted for them due to the reason that online mediums are not having penetration
across the whole market. In the official website of Hamilton Family Dental, it is well
stated that cost affordability is being offered by them. Thus, cost affordability is
attracting larger section of the customers, which cannot reach with the online mediums
only (Dahnil et al., 2014). Hence, in this case, they are having the need for more
effective means of marketing strategy, which will have higher penetration in the market.
According to the business analytics report, it is identified that Hamilton Family Dental is
facing the reduction in the average rate of new customer acquisition and one of the
major reasons for that is the limitation of the online mediums. It is also identified that the
online marketing strategy of Hamilton Family Dental is well aligned with that of their
sales. This is due to the fact that official website of Hamilton Family Dental is having the
direct link for appointment booking. Thus, the patients who seem to be impressed by the
information stated in the website can book their appointment directly and thus sales are
getting generated.
Recommended strategies
Market development approach (Foreign market entry)
There are different ways by which the business of Hamilton Family Dental can be
improved. In this case, Ansoff matrix will be used to identify the most potential methods
of doing business by them. According to this model, there are four major strategies that
can be beneficial for Hamilton Family Dental in developing their business. The first
available option is the market development. This refers to the process of targeting and
tapping new markets for the existing services. In the above opportunities section, it is