Branding Strategies Impact
ECRHS’s Branding Strategy
Brand strategy regarding East Chestnut Regional Health System (ECRH) refers to its presentation to the target audience to create a lasting impression and differentiate it from competitors. The current CEO considers that the medical facility needs a stronger brand strategy matching the rapidly moving strategic environment. In particular, the communication plan, marketing plan, and advertising of services need to be improved for the facility to enhance its brand and extension strategy (Bairrada et al., 2019). The company has developed a list of ten key areas that need to be improved under the service line performance due to operational concerns. The points focus on women’s services, cardiology, orthopedics, and general surgery.
Market Perception of Company Brand
ECRH has expanded over the past decade by merging with three other organizations. However, its reputation has declined recently due to safety concerns for patients, visitors, and physicians who use and serve the medical center. At the same time, the medical staff is aging, with the average age of the physicians being 57. There are younger primary care physicians who serve the specialists, but the specialists are aging as well. Some patients may have shown a positive perception of the brand, and some women were willing to be seen by the nurse practitioner. However, other parties hold the opinion that health care could be improved.
Impacts of Legal Cases
The organization is experiencing legal pending actions. The first major legal hurdle is the impending merger and acquisition of NMHC, which has raised concerns about antitrust. The main concern is that ECRH controls 60 percent of the cardiology market and 52 percent of the oncology market. The case may have major ramifications for ECRH if a negative determination is made due to market share control in oncology and cardiology. In addition to the cost implications, ECRH could be forced to divest its ownership in the Chestnut Care insurance venture and NMHC.
The other legal concern involves predatory collections, which have attracted investigations from the state’s Attorney General’s Office. The Attorney General’s Office decision could be adverse and require NMHC to pay taxes, which will wipe out the bottom line for these hospitals. Essential services supplied to the indigent population by ECRH would be reduced or eliminated. Given that the cases relate to malpractices, patient safety, and billing, they can erode consumer trust in ECRH (Sobolev & Voege, 2019). Consumers might be more likely to choose providers with a positive legal track record, good reputation, and transparent practices.
Acquisitions and Brand Image
Acquisitions are expected to improve ECRH’s reputation and expand resource availability. Therefore, they introduce positive elements into the business and a better image. However, the current acquisitions have hurt ECRH’s brand image, especially Chestnut Care, which has been subjected to several legal issues. The NHMC also has a bad image on the ECRH brand due to predatory collections of patients that would be served in its medical facilities.
COVID-19 and Brand Image
The healthcare environment has been affected by the COVID-19 global pandemic; however, the impact has varied. Some facilities gained trust and recognition for their efforts in handling the pandemic, while others faced challenges due to reduced elective procedures and safety concerns. The requirements of the patients changed compared to when their pandemic had not hit the globe. The handling of the pandemic has led to the increased use of technology, especially the offering of telehealth services. A facility’s brand image can be affected depending on whether it offers telemedicine and the overall crisis response strategies.
Branding Strategies, Consumer Choice, and Bargaining Power
ERHC seeks to create a solid brand to improve its perceived value and influence consumers’ willingness to pay and loyalty. The branding initiatives proposed by the new CEO will strengthen the company’s bargaining power. Their recognized brand equity will enable the facility to command premium prices and negotiate better terms with suppliers or partners (George, 2023). My service line, online, and co-branding strategies will enable the organization to break into new markets and support business growth. The items identified under the service line branding strategy will be a significant step in facilitating the provision of world-class services that will be the preferred choice of consumers.
Competitive Strategies Impact
Competitors and Market Share
ERHC faces stiff competition from Bamford Medical Center (BMC), which was headed by a CEO who showed excellence at optimizing performance and taking advantage of the weaknesses manifested by ECRH and its leadership. The facility had established 400 registered beds and attained a high occupancy rate of 85 percent. BMC effectively marketed its services and took away a sizeable share from ECRH. The losses suffered in ECRH’s service line market share translated into proportional gains for BMC.
The other major competitive force was the emergence of a medical center with a world-renowned reputation that competed with the medical school and hospital in Chestnut. The medical facility was developed 45 years ago and is associated with Greenbranch University. It provides care to the needy community in Chestnut and the neighborhood but has a bad reputation.
Threat of the New Entrants to Market and Organization
The threat of new entrants to the market and organization is low. The key barriers include complex regulatory requirements, high initial capital requirements, and the need for established medical expertise. ECRH and BMC, the key players, have established economies of scale and strong brand reputations that create barriers for new players. However, technological advancements and shifts in healthcare delivery models could lower these barriers and encourage new entrants.
Threat of Competitive/Substitute Products/Services to the Organization
ECRH faces stiff competition from BMC and is exposed to further competition for substitute products/services due to several developments in the medical field. They include telemedicine, alternative treatments, outpatient services, and wellness and preventive care options. These alternatives attract patients away from the traditional hospital care that requires the organization to adapt by improving patient experience, offering specialized treatments, and integrating technology to stay competitive.
Bargaining Power of Customers in the Market
Customers have low bargaining power in the healthcare market as it provides critical services. However, it can be influenced by alternative medicine options, insurance coverage, and the urgency of medical needs. Customers might need more bargaining power in markets with limited options or specialized services (George, 2023). However, in markets with many providers and transparent pricing, customers can exert more influence on decisions made by organizations as they can compare and choose their preferred provider based on cost and quality.
Bargaining Power on Consumer Choice in Market and ECRH
Consumer choice and organizational strategies can be influenced by the balance of bargaining power in the healthcare market. If consumers have higher bargaining power, organizations may need to focus on cost-effectiveness, transparent pricing, and patient-centered care to remain competitive (George, 2023). On the other hand, in markets where customers have limited bargaining power, organizations can maintain higher prices and rely less on customer preferences. ECRH should focus on providing better value for their money, including quality care at reasonable prices. This can improve their competitiveness and encourage improved services, cost reduction, and enhanced patient experience.
References
Bairrada, C. M., Coelho, A., & Lizanets, V. (2019). The impact of brand personality on consumer behavior: the role of brand love. Journal of Fashion Marketing and Management: An International Journal, 23(1), 30–47. Web.
George, D.B. (2023). Winning the health care race: Strategies for hospital marketing excellence in India. OrangeBooks Publication.
Sobolev, D., & Voege, N. (2019). Consumer judgment of morally-questionable behaviors: The relationship between ethical and legal judgments. Journal of Business Ethics. 165, 145–160. Web.
