Dr. Sulaiman Al Habib Medical Services Group’s Strategy Term Paper

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Introduction

Business strategy remains a powerful practice that business organizations apply to achieve their goals. In the health sector, firms that want to overcome competition and attract more customers should implement practical solutions to some of the existing obstacles. Dr. Sulaiman Al Habib Medical Services Group Company (HMG) is a group of hospitals operating in Saudi Arabia. The medical institution focuses on the outlined vision and mission statements to inform most of the care delivery services. The effectiveness of the adopted strategy implementation process, market segmentation, and social media marketing could explain why HMG achieves most of the outlined objectives.

Strategy Implementation

The changing healthcare landscape in Saudi Arabia is presently characterized by increased demand for medical care, use of digital technologies, and promotion of private-public partnerships. To succeed in this environment, HMG has positioned most of its operations in such a way that it acquires emerging technologies and adapts continuously to the nature of the developed collaborations. During the COVID-19 pandemic period, this hospital relied on its powerful virtual infrastructure “to provide healthcare services beyond its physical locations, reaching communities across the region” (Dr. Sulaiman Al Habib, 2021, p. 22). To achieve most of these goals, the use of proper segmentation and marketing strategies has been an influential practice at HMG.

Market Segmentation and Social Media Marketing

The overall strategy of HMG revolves around attracting the best medical experts who can deliver excellence in patient support and care. This model is combined with additional initiatives aimed at opening additional centers in Saudi Arabia and beyond in order to achieve positive outcomes. At the center of this objective is the use of effective marketing approaches that resonate with the needs and expectations of most of the targeted patients in the wider Middle East region. Specifically, HMG pursues market segmentation by identifying different regions and targeting them using the available resources, such as pharmacies, diagnostic centers, radiological equipment, and medical facilities (Parnell, 2016). Additional segmentation is pursued using geographic, demographic, behavioral, and psychographic attributes (see Table 1). These outlets are designed, opened, and managed depending on the unique needs of more patients in the selected areas.

Table 1: Market segmentation for HMG

VariableBreakdown
Geographic
Region
The hospital provides its services in Saudi Arabia, and across the Middle East
Demographic
Age
Gender
Education

Race and religion

Patients of all ages
Both male and female
Parents and young people with basic education (and their children)
Primarily Arabs and Muslims
Psychographic
Social class
Lower, middle, and upper
Behavioral
Use occasion
Attitude
Regular or when sick
Positive/enthusiastic

The established corporate governance structure supports a vertical organizational model whereby specialized services are marketed and provided to patients based on their changing needs. Having segmented the wider market using its differentiated facilities and services, HMG goes further to rely on the use of social media marketing strategies to support the intended objectives. Specifically, the organization operates platforms on LinkedIn, Twitter, Facebook, and Instagram to inform more patients about the existing facilities, widely utilized technologies, and success stories in the area of care delivery (Alanzi & Alfuraikh, 2022). In the recent past, the launch of a digital signage project across its major facilities has been integrated with the existing social media outlets (Parnell, 2016). The displayed content makes it possible for more members of the community to be informed and ready to seek the most appropriate services from the nearby HMG facility.

Matching Organizational Structure and Strategy

HMG has established a unique organizational structure defined by the existing facilities or segments. For instance, the hospital has associate and subsidiary facilities that partner with HMG to identify merging patients’ needs and address them accordingly. A horizontal model of structure exists depending on the nature of the services offered, including laboratory, care delivery, and pharmaceuticals (Dr. Sulaiman Al Habib, 2021). Marketing procedures and social media strategies are pursued in accordance with the primary objectives of every segment. Additionally, operations management is coordinated depending on the region in which a particular facility operates (Dr. Sulaiman Al Habib, 2021). A customized strategy is usually taken into consideration to ensure that majority of the targeted patients are able to identify the available medical services and utilize them whenever necessary.

To achieve the anticipated business goals, HMG has implemented a vertical integration model that supports the available capabilities and technologies in such a way that value is created for most of the stakeholders. Specifically, the company has established clinics and centers in local and urban regions (Alanzi & Alfuraikh, 2022). Such institutions are equipped with modern technologies that make it possible for leaders to mentor and guide medical practitioners to provide high-quality services. The use of homecare solutions is an evidence-based approach that is founded on the hospital digital approach (Dr. Sulaiman Al Habib, 2021). Consequently, the medical organization has managed to address most of ht existing patients’ issues while taking profitability to the next level.

Human Resources (HR) Issues

While combining marketing operations and business strategy, HMG continues to rely on the best human resources (HR) practices that can maximize performance and overall service delivery. For example, the formulated corporate structure creates room for a HR department that liaises with professionals and managers in different hospitals and subsidiaries affiliated to HMG. The team works continuously to identify and address a wide range of issues that might affect the experiences of the involved professionals (Alanzi & Alfuraikh, 2022). For example, the HR department focuses on the best approaches to ensure that all the people involved in marketing and care delivery practices remain empowered and satisfied (Alanzi & Alfuraikh, 2022). The involved team will address emerging challenges and offer additional insights for maximizing commitment. Some of the common problems include reduced employee morale, lack of medical resources and supplies, and managerial issues. The HR department collaborates with other units to deal with these challenges.

Over the years, HMG has promoted a favorable working environment that allows medical professionals to rely on the use of emerging medical technology. This effort helps deal with the problematic issue of employee turnover. Individuals receive timely updates and resources that have the potential to support their operations (Parnell, 2016). Within the wider aspect of organizational structure, proper and timely training is considered to guide marketers and decision-makers to focusing on the changing expectations of most of the targeted patients. By addressing turnover, burnout, and reduced commitment levels, the HR department has made it possible for HGM to become a leading provider of personalized medical services in the studied region.

Strategy Evaluation

Table 2: HMG’s balanced scorecard

DimensionDescriptionKey Performance Indicators (KPIs)
FinancialIs HGM achieving the anticipated financial objectives?
  • Annual operating income
  • Return on assets and investments
  • Return on equity (RoE)
  • Sales and profits
  • Cash flow statements
CustomerIs HGM meeting the changing needs of the targeted patients?
  • Recorded patient satisfaction scores
  • Attracting and treating new patients
  • Increasing overall market share in different regions
  • Delivery of high-quality and personalized medical services
Internal business processesIs the medical institution improving its processes continuously?
  • Acquisition of emerging technologies in healthcare
  • Continuous improvement in care delivery processes
  • Streamlining organizational processes and management
Learning and growthIs HGM improving its practices, strategies, and innovations?
  • Employee training
  • Work-life balance
  • Acquisition and use of emerging technologies in care delivery
  • Introducing of superior care delivery models informed by the changing expectations of most of the intended patients in the region

From the above analysis, it is agreeable that HMG focuses on the best strategies to align its business strategy with a wide range of operations. For example, the marketing efforts are designed in such a way that they integrate emerging technologies, such as social media platforms, to advertise the available services (see Table 1). Such an effort is essential since it has led to an increasing market share in the selected region (Dr. Sulaiman Al Habib, 2021). HMG has gone further to leverage emerging technologies and ensuring that they support a wide range of clinical practices and operations (Alanzi & Alfuraikh, 2022). The focus on the four areas of the balanced scorecard reveals that this medical facility is aware of its current and future aims, the expectations of the targeted customers, and the importance of relying on emerging technologies.

Conclusion

The above discussion has identified HMG as a successful group of medical facilities in Saudi Arabia. The leaders at this institution promote a unique organizational structure informed by the demands and goals of the major segments and operations. The effectiveness of the adopting marketing and segmentation practices has made it possible for the company to attract more patients in the region. The presented scorecard reveals that the strategic direction put in place resonates with the formulated mission and vision statements. The move to continue supporting the implemented strategy means that HMG will remain a dominant and competitive player in the Saudi Arabian health sector and become a pacesetter in the next few years.

References

Alanzi, T., & Alfuraikh, A. (2022). 18(1), 211-216. Web.

Dr. Sulaiman Al Habib. (2021). Committed to growth: Dr. Sulaiman Al Habib Medical Services Group Company: Annual report 2021. HMG.

Parnell, J. (2016). Strategic management: Theory and practice (5th ed.). Sage.

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