Summative Assessment

Summative Assessment

Introduction

A brand strategy assesses the plan of a business regarding the building of favorability and rapport in the market. ECRHS’ brand strategy includes plans to attain long-term goals that will ensure the organization wins the loyalty of customers and improve its revenue. The strategy is based on the service line and brand extension. Notably, this assessment analyzes the branding strategy impact and the impact of competitive strategies as follows:

Part I: Branding Strategy Impact

ECRHS’ Current Branding Strategy

ECRHS’ current branding strategy is intended to help the organization attain long-term goals to assist customers in recognizing and preferring the company. However, as indicated, the current strategy is weak for various reasons. For instance, the current CEO asked the marketing team to develop a better brand that combines all entities of ECRHS, indicating that the existing strategy is weak. Currently, the company uses brand extension and service line extension strategies. For example, the company intends to increase obstetrical deliveries by 20% in three years using the brand strategy. Also, the company plans to improve the development and facility for women’s services under the brand extension strategy. Additionally, the company intends to improve line development by employing a cohort of physicians with a reduced average age as a service line extension strategy.

How ECRHS and Its Brand(s) are Perceived In the Market

The services offered by the organization have a good perception in the market, considering that a fair number of women were willing to be served by a nurse practitioner in the organization despite the industry having more than ten care providers. Drawing from the case study of ECRHS, women from the Collar and Chestnut counties offered ways to improve the company, which included suggesting the addition of more children care and primary care doctors to enhance organizational performance. Notably, this suggestion indicates that the services that were previously being offered did not satisfy the community, as other women had to travel to other facilities in search of healthcare services. Additionally, there was a perception among the public of getting appointments with primary care physicians in the organization. At the same time, many community members were willing to be seen by nurse practitioners. Women are expected to receive services such as gynecology services and breast care services in one location. However, 36% of women sought services outside the county, indicating that their perception of the organization was not good.        

Negative Impacts of Legal Cases against ECRHSS within the Community or Its Consumers and How They Might Impact Consumers’ Choice of A Health Care Provider

There are pending charges that have been filed against the organization and are waiting for determination. They include the antitrust questions related to the NMHC merger and acquisition and the Federal Trade Commission investigation. The legal actions negatively impact ECRHS due to the likeliness of being required to relinquish the ownership of Chestnut Care insurance investment. Members of society, especially those relying on care insurance, will not be able to access the facility services if the ownership is stopped. Further, the legal proceedings consume the organization’s resources, and there is a likelihood that ECRHS may be divested, negatively impacting the combined organization. Notably, this will worsen the case for the company, and its market perception may get tainted because divesting the organization will result in a lack of enough finances to support its operations fully. Thus, consumers will be subjected to choosing another healthcare facility with a better market perception.

How Acquisitions of Other Health Care Facilities Impacted the Organization’s Brand Image and Consumer Choice of ECRHS

When I conduct a competitor analysis that also offers healthcare services, the brand image plays a central role in helping to get an insight into whether acquiring other facilities improves the organization. If the brand image of competitors seems to have become superior after the acquisitions, then I will ascertain that acquiring other facilities negatively influences ECRHS’s brand image. However, my brand image improved after the acquisitions, and more consumers preferred healthcare services from ECRHS.

How Handling the COVID-19 Pandemic Can Impact Brand Image

The overall market conditions changed significantly due to the Covid-19 pandemic. ECRHS and other healthcare providers’ brand image was influenced by how these facilities handled the pandemic. Those who did not address the pandemic appropriately negatively impacted their brand image (Shreffler et al., 2020). However, this was not the case for ECRHS because the facility responded appropriately, including conducting qualitative and quantitative research to determine the best responses to the crisis.

Impact of Branding Strategies on Consumer Choice and Bargaining Power

The significant gains made through ECRHS’s service line and online branding assess new markets and enhance company growth. For instance, more value is delivered to the customers through the service line branding, and as a result, consumers’ bargaining power is reduced because they are compelled to pay more for the value received. Therefore, branding strategies reduce consumers’ bargaining power and facilitate more company purchases.

Part II: Competitive Strategies Impact

ECRHSS’s 2 Largest Competitors and How Their Offerings Differ from Those of ECRHSS

The two major competitors for ECRHS are medical schools associated with Greenbreach University and the Bamford Medical Center (BMC). The former has separate hospitals in Butternut, Walnut, Maple, and Oak counties, while the latter is the largest for-profit healthcare facility in the country. Thus, BMC is the main competitor, with an 85% occupancy rate. Also, the company bears different market competition aspects, including its newly open center situated in a wealthy community and the critical decision of syndicating ownership with physicians.

Competitors’ Share of the Market

The two competitors hold significant market share, which, based on the pay mix system, includes 15% in Medicaid, 30% in commercial, and 55% in Medicare.

The Threat of New Entrants to the Market and the Organization

The threat of new entrants into the market is relatively low. Notably, the threat is low due to the complex processes required before setting up a healthcare facility and significant capital requirements (Herrmann et al., 2018). However, the threat of new entrants can be considered to be resulting from within the existing organizations. For instance, Banford Medical Center plans to expand its operations by opening new facilities. The new facilities will act as new entrants because they will likely compete for customers that ECRHS and other facilities serve. Therefore, the threat of new entrants can be argued to be low but not completely zero.

The Bargaining Power of Customers in the Market

The threat of substitute products is relatively high, pushing the bargaining power of customers high. Notably, this is so because the companies operating in healthcare services have not engaged in significant product/service differentiation. As a result, consumers can easily shift from one provider to another (Savage et al., 2018). Also, the threat of substitution is high because there are no costs involved in moving from one organization to another for the consumers. Thus, the bargaining power of consumers is vital in the market, and organizations have to take essential measures to maintain customer loyalty.

How This Bargaining Power Impacts Consumer Choice in the Market and For ECRHSS

The high bargaining power of consumers creates better services for healthcare providers. In the case of ECRHS, consumer bargaining power affects customer loyalty to the organization, creating a need for the company to market its services to potential consumers.

Conclusion

HCRH’s strategy is identified to be weak despite its focus on two aspects of the service line and brand line extension. Some of the reasons why it is weak are the legal cases that the organization faces that negatively impact its performance. An analysis of the market in which the organization operates identifies two major competitors: a high bargaining power of customers, a high threat of substitutes, and a low threat of new entrants. Therefore, the company should market its services to potential consumers to enhance its position in the market.

References

Herrmann, M., Boehme, P., Mondritzki, T., Ehlers, J. P., Kavadias, S., & Truebel, H. (2018). Digital transformation and disruption of the health care sector: internet-based observational study. Journal of medical Internet research, 20(3), e9498.

Savage, L., Gaynor, M., & Adler-Milstein, J. (2018). Digital health data and information sharing: A new frontier for health care competition. Antitrust LJ, 82, 593.

Shreffler, J., Petrey, J., & Huecker, M. (2020). The impact of COVID-19 on healthcare worker wellness: a scoping review. Western Journal of Emergency Medicine, 21(5), 1059.

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See the attached template I created for this assignment. You might find it helpful in completing your assignment.

Review the Case Study document.

Assume upper management of the organization is interested in understanding the impact it’s branding and competitive strategies have on consumer choice, as well as the impact of the bargaining power of consumers in the healthcare market, especially on your products and services.

Prepare a 1,050-word summary of branding and competitive strategies’ impact on consumer choice and bargaining power on ECRHS.

Part I: Branding Strategy Impact

Analyze the impact that the current ECRHS brand has on consumer choice of its products and services. In your analysis, consider the following:

What is ECRHS’ current branding strategy?
How are the organization and its brand(s) perceived in the market?
Are there any negative impacts of legal cases against the organization within the community or its consumers? How might this impact their choice of a healthcare provider?
How have your acquisitions of other health care facilities impacted your brand image and, hence, the consumer choice of your organization?
Unknown events in the company’s external environment can affect brand image. How could an event, such as the COVID-19 pandemic, impact ECRH’s brand image?
What impact do your branding strategies have on consumer choice and bargaining power?

Part II: Competitive Strategies Impact

Analyze the impact that the current ECRHS competitors have on consumer choice of its products and services. In your analysis, consider the following:

Who are the 2 largest competitors, and how do their offerings differ from those of ECRHS?
What share of the market do the competitors hold?
What are the threats of new entrants to the market and the organization?
What is the threat of competitive/substitute products/services to the organization?
What is the bargaining power of customers in the market?
How does this bargaining power impact consumer choice in the market and for ECRHS?

Cite at least 3 reputable references to support your assignment (e.g., trade or industry publications, government or agency sites, scholarly works, or other sources of similar quality).

Format your citations and references per 7th edition APA guidelines.

Submit your assignment as a Word document.