Introduction
Investors look for opportunities in various industries, both those that already exist and those that have not yet been taken advantage of. The health industry is one of the most profitable fields individuals may choose to invest in since people get ill. Other clients always seek dietary guidance, and some older individuals consider nursing homes a possible living arrangement. Opportunities arise for those interested in investing in the healthcare industry due to all of these factors.
When deciding which companies to invest in a certain industry, most investors consider blue and red ocean variables. According to Rezeki et al. (2019), the red ocean alludes to the current commercial landscape. It offers chances that are already being taken advantage of by other investors. On the other side, the blue seas are uncharted prospects and have not been pursued by other businesses in the same industry (Rezeki et al., 2019).
In healthcare, Oklahoma City is home to a number of red and blue seas. The population and other demographic characteristics indicate that Oklahoma City offers opportunities that have not yet been fully exploited, and investors stand to gain from these opportunities. In the interest of the healthcare industry, this research investigates the red and blue seas in Oklahoma City. Therefore, red and blue ocean strategies are vital factors that ensure investors spot ideal gaps for creating a business, and without their aid; most entrepreneurs tend to land non-lucrative deals.
Background
City Profile
OKC is an abbreviation often used to refer to Oklahoma City. OKC is the biggest city in Oklahoma and the 11th in the Southern United States (Oklahoma Cities by Population, 2021). The metropolitan region surrounding Oklahoma City had inhabitants of 1,439,640 residents as of 2021 (Oklahoma City, Oklahoma Population, 2022). The metropolis jurisdiction has a total area of 620.34 square miles (1,606.7 km2) (Oklahoma City, Oklahoma Population, 2022). Since it is located in the border nation, it is an excellent choice for the location of the state authority.
The winters in Oklahoma City are cold and even get snowfall on occasion. The summers, on the other hand, are extremely hot and humid. The city has an estimated annual temperature of 30 to 94 degrees Fahrenheit; nevertheless, April and May are often the months with the most extreme weather (Oklahoma City Climate – Weather Spark, 2022). According to the official survey completed in 2010, 65.9% of the people living in OKC were of European-American descent (QuickFacts: Oklahoma, 2021). Moreover, 14.4% were of African-American descent, and 2.9% were of American Indian descent. 4.4% of Hispanics were Asian, compared to 20.0% of Hispanics overall (QuickFacts: Oklahoma, 2021). Thus, this demonstrates how there is uneven ethnic diversity in Oklahoma.
Competitive Landscape
Although Oklahoma City is the 11th biggest city in the United States, it has a very low ranking in the healthcare industry. According to Huff (2019), on state health system performance, Oklahoma does badly in terms of its overall effectiveness in healthcare. The chance is available to those eager to invest in the healthcare industry. Consequently, considering its sensitivity, the industry requires efficient medical services to guarantee that the population is fit on all levels health-wise (Cognitively, emotionally, physically, and psychologically). The city provides various healthcare services, including medical treatment, nursing homes, help recovering from addiction to drugs and alcohol, and advice on public health.
The most common types of institutions that provide these operations are hospitals and clinics; however, various specialized institutions also provide certain types of medical treatment. The effectiveness of state health systems in the city of Oklahoma City is home to more than two thousand legally operating medicinal dispensaries (The Commonwealth Fund, 2020). Herbal Legend Cultivation, 5 Big Boys, AAA Retail, and Affordable Cannabis are some of the businesses that fall under this category.
Furthermore, the city of Oklahoma City is home to several nursing facilities. As such, they consist of the Epworth Villa Healthcare, Spanish Cove Housing Authority, the Accel at Crystal Park, the Baptist Village of Oklahoma City, and the Bellevue Health and Rehabilitation Center (Nursing Homes in Oklahoma City, 2022). These establishments provide a wide range of services to their patrons, the most prominent of which is providing a haven for the elderly members of society. These senior citizens may have left the workforce behind and are looking for a tranquil environment to spend their retirement years. Others may have been abandoned by their family members, and the nursing homes provide a haven and a soothing environment for them as they grow older.
Providing additional medical care and a place to live for older people are other services nursing homes provide. Through rehabilitation programs, they assist drug and alcohol abusers in overcoming their dependency on addictive substances. The drug is a threat to society and impacts the majority of young people who are first exposed to more dangerous substances like marijuana, cocaine, and alcohol (Clary, 2020). Only in the carefully monitored settings that nursing homes offer is it possible to successfully treat addictive behavior to these drugs. Individuals who suffer from mental disorders, some of whom have been abandoned by their family or are aggressive and cannot be managed in normal situations, need treatments comparable to these.
Therefore, the vivid image of Oklahoma’s environment indicates that the city is a drug-abusing environment for young individuals. Hence, this lackluster history of Oklahoma City’s healthcare industry offers the ideal conditions for a new investor to establish a medical care center. It demonstrates that the facilities the city now has do not function up to their standards. One possible explanation is that the demographic is much more than the capacity of the available healthcare facilities. This is a valuable opportunity that new and current investors should take advantage of. The events that transpired in Oklahoma City demonstrate that fresh investors will probably engage in a healthy rivalry with the current healthcare system and may even provide it with a formidable challenge.
Observations
Red Oceans
Red ocean pertains to the current market, which offers opportunities presently being exploited by other investors. In the case of health care, red seas allude to the chances grasped by other entrepreneurs to offer healthcare and fitness solutions to residents (Pfannstiel & Rasche, 2017). The phrase red ocean was derived from the character of the rivalry, which is ruthless and pits industries against one another for sustainability. As the market grows, enormous corporations strive hard for a fair part of the market. Due to the fierce competition for the remaining market, organizations functioning in such a setting see falling earnings.
Established healthcare institutions in Oklahoma City have already taken advantage of several available options. Several healthcare institutions have been established, comprising hospitals, clinics, and nursing homes. They give healthcare assistance to more than 1,400,000 city residents. These changes, nevertheless, present an excellent channel for fair rivalry. According to the city’s healthcare ranking, a new healthcare center in Oklahoma City is projected to attract more patients than current facilities. This is because individuals would be interested in using the new facility’s offerings since most present ones have poor evaluations. Hence, emerging and current entrepreneurs in healthcare services will undoubtedly face stiff competition from nursing homes and government-sponsored healthcare initiatives.
Blue Oceans
Opportunities that are undiscovered and have not been taken advantage of by other rivals are called blue seas. They provide unrealized potential in the market that is ideal to capitalize on since it does not face any competition from other types of businesses. The reason for the moniker Blue Ocean is that it refers to areas that are uncharted and untouched by rivalry (Mourtzikou et al., 2019). They are expansive, profound, and potent regarding opportunities and potential for development.
In Oklahoma City, a Blue Ocean approach is critically essential. The technique entails minimizing rivalry and establishing a unique demand line. An entrepreneur can invest in a huge healthcare institution that provides all treatments, including difficult treatments. This is because it will build demand in sections where people need services instead of generating completeness. For illustration, rather than dealing with other hospitals to offer kidney dialysis, a hospital may modernize and provide kidney transplants to customers who would prefer to seek such options elsewhere.
Conclusion
Ideally, healthcare is a delicate industry that requires significant investment. It is concerned with preserving people’s lives; hence it does not necessitate gambling. Data suggests that the town’s healthcare industry is struggling. Most healthcare institutions do not offer the city’s residents sufficient healthcare services. As a result of the inadequacy of the nursing facilities, several individuals needing their services are relocating to other cities.
Basically, Oklahoma City’s large population has stretched the current medical care programs. In this way, necessitating the recruitment of more entrepreneurs to bolster the industry’s perfect prospect will ensure a lucrative deal for investors and residents making it one of the best cities for investing and seeking healthcare. Thus, this presents the ideal chance to use red ocean methods since several organizations have been established. Hence, this is opposed to Blue Ocean which will provide minimal potential due to the existence of hospitals with robust services; hence, no chance of exploiting potential opportunities.
References
Clary, J. (2020). Screening for prescription stimulant misuse among young adults in primary care. Oklahoma City University.
Huff, D. (2019). Oklahoma has a health care problem. Some lawmakers are advancing the wrong solution. Oklahoma Policy Institute. Web.
Mourtzikou, A., Stamouli, M., & Emmanouil, D. (2019). Implementation of the Blue Ocean Strategy in Healthcare. International Journal of Reliable and Quality E-Healthcare, 8(2), 36–49. Web.
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Pfannstiel, M. A., & Rasche, C. (2017). Service business model innovation in healthcare and hospital management. Springer.
QuickFacts: Oklahoma City, Oklahoma. (2021). Census bureau quickfacts; United States Census Bureau. Web.
Rezeki, S., Sentanu, I. G. E. P. S., Sanawiri, B., Shankar, K., & Thanh, P. (2019). Blue ocean strategy for creating value of the organization: Examination of differentiation with Red Ocean strategy. International Journal of Recent Technology and Engineering (IJRTE), 8, 2277-3878. Web.
The Commonwealth Fund – 2020 Scorecard on state health system performance. (2020). Web.