What is strategy?
Definition of Strategy: General approach taken by a healthcare organization to address
market challenges.
Purpose of Strategy: Sets tone for marketing activities and guides the development of
marketing plans and initiatives. Sets the parameters within which the marketer must operate.
Levels of Strategy:
Corporate Strategy: Overall development of the organization’s business activities.
Business Strategy: Approach for a specific product or market.
Marketing Strategy: Focuses on aspects of the marketing mix and achieving objectives.
Components of Marketing Strategy:
Approach to target market
Marketing mix selection
Budget for marketing expenditures
Strategic Planning: Ideally deliberate and well-formulated through enterprisewide planning.
Unintentional Strategies: Can emerge from lack of formal planning or unclear articulation
of strategies.
Emergent Strategies: Result from unconscious patterns of behavior, not deliberately
imposed by management.
Outcome: Even in the absence of a formal strategy, some form of strategy usually exists.
Why strategy development is important
Direction: Provides guidance on organizational development ("which way").
Focus: Concentrates efforts on a specific strategy, avoiding confusion and dilution of efforts.
Unification: Aligns and unifies organizational actions with a clear purpose.
Differentiation: Reinforces organizational identity and distinguishes from competitors.
Promotional Materials: Guides the creation of consistent promotional content and image.
Resource Allocation: Directs resources to a single approach, enhancing effectiveness.
Decision-Making Support: Establishes criteria for making decisions.
Competitive Edge: Positions the organization strategically, leveraging assets for a market
advantage.
Competence Demonstration: Shows a systematic approach to key stakeholders, such as
funders and regulators.
Strategic Planning Process
Definition:
Strategic planning is the process of defining an organization's direction and making decisions on
allocating resources to pursue this direction. It involves setting long-term goals and determining
the best approach to achieve them.
Key Concepts:
Strategic Plan: A comprehensive guide for executing a specific strategy within an
organization.
Call to Action: A statement urging the audience to take specific actions regarding a
product or service.
Importance:
1. Guides Decision-Making: Provides a clear roadmap for making informed decisions
aligned with organizational goals.
2. Enhances Efficiency: Helps in allocating resources effectively and optimizing
performance.
3. Facilitates Alignment: Ensures that all levels of the organization are working towards
the same objectives.
4. Adapts to Change: Allows for proactive responses to external changes and emerging
opportunities or threats.
Steps:
1. Plan for Planning
o Mission: Define the organization's core purpose.
o Goal: Set the ideal state or objectives to be achieved.
o Explanation: Review and potentially revise the organization's mission and goals.
Establish a planning team with diverse stakeholders and internal resources.
2. State Assumptions
o Explanation: Frame the planning within the organization's current context by
stating assumptions about the market, competition, and other external factors.
3. Gather Initial Information
o Explanation: Collect background data on the organization, including internal
reports, marketing activities, and stakeholder insights. Assess existing marketing
efforts and organizational culture.
4. Profile the Organization
o Explanation: Detail the organization’s products, customer base, and resources.
Understand what the organization offers, who it serves, and its capabilities.
5. Collect Baseline Data
o Internal Audit: Evaluate internal operations, including policies, services, and
financial status.
o External Audit: Analyze the external environment, market trends, and
competitive landscape. Define service areas and gather demographic and
psychographic data.
Step 6: Identify Health Status
Explanation: Assess the health characteristics of the target market to understand
population health needs and service demand. Evaluate morbidity, disability, reproductive
health, and mortality data to inform strategic planning.
Step 7: Convert Health Status to Health Service Demand
Explanation: Translate identified health needs into specific service demands, such as
hospital services, procedures, and medications. Consider health behaviors, including
formal healthcare usage and informal wellness activities, to predict actual service
consumption.
Step 8: Conduct a Resource Inventory
Explanation: Catalog the organization's facilities, personnel, and other resources to
address healthcare needs. Focus on competitive resources and build relationships with
key stakeholders, as these are crucial for strategic positioning and competitive advantage.
Step 9: The State of the Organization
Explanation: Analyze and summarize all collected data to assess the organization’s
position in the market. Review trends, population profiles, service demands, and resource
gaps to refine strategies and address any identified needs.
Selecting a Strategy
Considerations for Strategy Selection
Organizational Nature and Mission: Align the strategy with the organization's core
purpose and goals.
Market Characteristics: Assess customer needs and market dynamics.
Existing Competition: Analyze competitors' strengths and weaknesses.
Impact: Recognize that the chosen strategy will affect public perception and have long-
term implications.
Creativity Required: No one-size-fits-all strategy; each situation requires a tailored
approach.
SWOT Analysis
Definition
SWOT Analysis: A technique to assess an organization's Strengths, Weaknesses,
Opportunities, and Threats to guide strategic development.
Dimensions of SWOT Analysis
1. Strengths
o Definition: Distinctive skills or attributes that help achieve objectives.
o Examples: Marketing capabilities, strong management, positive reputation, and
robust financial resources.
2. Weaknesses
o Definition: Attributes indicating vulnerabilities that hinder goal achievement.
o Examples: Inadequate capital, poor management, limited services, and personnel
shortages.
3. Opportunities
o Definition: External features that could benefit the organization in reaching
objectives.
o Examples: Market gaps, new reimbursement sources, demographic shifts, and
competitor weaknesses.
4. Threats
o Definition: External conditions that may impede the achievement of objectives.
o Examples: Competitive pressures, unfavorable demographic changes,
reimbursement issues, and other external risks.
Research Methods
Quantitative Research: Includes community or patient surveys to gather numerical data.
Qualitative Research: Involves personal interviews with stakeholders, key decision
makers, and opinion leaders to gain in-depth insights.
Importance
Consensus: Achieving agreement on identified strengths, weaknesses, opportunities, and
threats is crucial for effective strategic planning.