Sonic Health: Marketing Analysis Report and Business Strategies

This report provides a comprehensive marketing analysis of Sonic Health, a company operating in the healthcare sector. It begins with an introduction highlighting the competitive landscape and the need for internal and external analysis. The report then delves into Porter's Five Forces, assessing competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entry within the healthcare market. Following this, a SWOT analysis is conducted, identifying Sonic Health's strengths (e.g., innovative products), weaknesses (e.g., lack of diversification), opportunities (e.g., social media usage), and threats (e.g., competition). The report concludes by outlining the business and corporate-level strategies that Sonic Health should employ, advocating for a cost leadership strategy at the business level and unrelated diversification at the corporate level to navigate the competitive market and satisfy customer needs. The report draws upon several academic sources and company information to support its findings and recommendations.

Running head: MARKETING
Marketing
Name of the Student:
Name of the University:
Author’s Note:

1MARKETING
Introduction
The Modern day scenario is the age of huge competition. In order to make sure that the
company is able to give a very tough competition to their survivors, they have to conduct an
extensive internal and external analysis so that they are able to understand the strengths and the
weaknesses that are present and how can they meet with these issues. Sonic Health is also trying
their best to work go forward in the course of their business (Sonichealthcare.Com)
Porter’s Five Forces
Competitive rivalry
Competitive rivalry in the health care sector is high. This is because as there are many health
care sectors or firms coming up in the modern day scenario. This happens to be a threat because
they will have to compete with a large number of hospitals and other firms
Supplier Power
The suppliers are plenty for the heath care sectors. As there are many suppliers, this is a threat
for the company, as suppliers will be at a higher end of bargaining and can change the places
where they supply the product
Buyer Power
Buyer power is high in health care sectors as there are many firms. Each firm in the health care
sector is trying their level best to make sure that they can come up with the best possible services
and also technological advancements. Therefore customers can switch over from one form to the
other very easily

2MARKETING
Threat of Substitution
The number of substitutes available is high and this is also a major threat for the organization. As
there are many other firms, they might be able to develop a large number of substitutes and also
the chance of switching over to re substitutes is high (Park et al).
Threat of New Entry
Threat of new entry in the healthcare sector remains high as many entrepreneurs are trying to
set up start up industries and enter in the organization. Many new firms can enter into the
market each day with their best suitable strategies. All the firms are trying their level best to
make sure that they can attract the attention of their customers. Therefore threat of new entry is
high and this can be a threat for the health care sectors.
SWOT Analysis
Strength
Sonic health care has become the leading producer in many of the new and the innovative
medical products and technological devices in the field of pharmaceuticals and drug industry.
They have made consecutive profits in test 5 years and have been able to gain accumulated profit
reserves so that they can use it for all the future expenses.

3MARKETING
Weakness
Lack of diversification is also one of the major weaknesses that have been suffered by the
company. This makes sure that there is a lack of cross cultural management in the company. As
there are many changes in the drug or the pharmaceutical industry, the company has undergone
several changes (Başal, Bilgen). A lack of proper financial planning regarding cash flow is one
of the major aspects that go wrong in the Sonic health care organization. There is often the issue
of lack of enough cash that is needed for several purposes (Burkitt, Hugh).
Opportunity
Social media usage and applications have developed over the years. Online booking and other
such services have developed so that the services can be rendered in a proper way to all their
customers. The service system has been really optimized. This ensures that they can now interact
with all the customers in a very fast and also effective manner.
Threat
A huge competition from the rivals or the other competitive firms can turn out to be harmful for
this organization. This is because of the fact that the many new firms are coming up with
advanced technologies and strategies (Patterson, Maurice and Gretchen Larsen). Increased
number of promotions is reducing their overall growth because too many advertisements reduce
their time of promotional messages.
Corporate and Business Strategies
The business level strategy that must be used by the organization is cost leadership strategy. This
is the organization must try their level best to make sure that they are operating at a low cost of

4MARKETING
operation (Tadajewski et al). This is because the company has to work at a very low cost strategy
so that they are able to save more funds and later use it for the other additional services. This will
be useful for the company as they can work with a low cost for their operations. This is very
useful for the firm as this will be able to help them for extra additional works.
The corporate level strategy that is used by the company is Unrelated Diversification. This is
because of the fact that the company must try to operate by bringing in some extra additional
products and services in the organization (Burkitt, Hugh). It is because in order to survive in this
tough competitive market, they will have to make sure that they are now entering into new
ventures and make sure that they can attract the attention of their customers
(Sonichealthcare.Com). This is useful because in order to survive in this modern competitive
organization, they have to identify and also satisfy the needs and demands of their customers.
This is very useful because customers are always in need for some extra and also some additional
kinds of services.
Conclusion
Therefore it can be concluded that after conducting an in depth porter’s five analysis and SWOT
analysis, it has been seen that there is a huge competition in the medical sector. Therefore the
company has to focus on the competition level and be able to utilize the same in their business
operations in order to attain success in the long run. They will aim to make a progress in their
sales process so that so that they are able to succeed in the log run.

5MARKETING
References
"Sonichealthcare.Com". 2020. Sonichealthcare.Com. https://www.sonichealthcare.com/#/.
Başal, Bilgen. "Actor Effect." Narrative Advertising Models and Conceptualization in the
Digital Age (2017): 34.
Burkitt, Hugh. Marketing Excellence 3: Award-winning Companies Reveal the Secrets of Their
Success. Kogan Page Publishers, 2014.
Higgins, Matthew, and Janice Denegri-Knott. The Routledge Companion to Critical Marketing.
Edited by Mark Tadajewski, and RohitVarman. Routledge, 2019.
Park, Sang Hyoung, Young-Ho Kim, Ji Hyun Lee, Hyeok Jin Kwon, Suck-Ho Lee, Dong Il Park,
HyungKil Kim et al. "Post-marketing study of biosimilar infliximab (CT-P13) to evaluate
its safety and efficacy in Korea." Expert review of gastroenterology &hepatology 9, no.
sup1 (2015): 35-44.
Patterson, Maurice, and Gretchen Larsen. "Listening to consumption: Towards a sonic turn in
consumer research." Marketing Theory 19, no. 2 (2019): 105-127.
Tadajewski, Mark, Matthew Higgins, Janice Denegri-Knott, and Rohit Varman, eds. The
Routledge Companion to Critical Marketing. Routledge, 2018.