Branding and Competitive Strategies\’ Impact on Consumer Choice Essay

Branding and Competitive Strategies\’ Impact on Consumer Choice Essay

Branding and Competitive Strategies’ Impact on Consumer Choice

Part I: Branding Strategy Impact

What is the branding strategy for East Chestnut Regional Health System (ECRHR)?

Since merging three medical facilities (Archway Hospital, Northern Mountain Hospital Consortium, and East River Medical Center) to form a healthcare system, the subsequent ECRHS’s brand has significantly transformed into a reputable organization. According to Kotler & Armstrong (2019), branding is a skill for professional marketers because it cultivates customer attachment and relationship with an organization. The ECRHS’s branding strategy today promotes consumer-driven services such as women’s health, cardiology, orthopedic, ambulatory, and emergency medical services. The determination to provide customer-oriented services has influenced organizational infrastructural development and has formed the basis of its competitive advantage.

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How is the organization’s brand(s) perceived in the market?

Although the three merged health facilities faced multiple constraints before the merger, ECRHS has maintained a positive reputation across the five served counties, including Chestnut, Walnut, Butternut, Oak, and Maple County. For instance, 72% of women in Chestnut County perceive ECRHS as a reputable organization for providing high-quality health services such as breast cancer, gynecology, and access to female doctors. In the same breath, about 42.9% of women expect same-day appointments in Chestnut County. These indications mean that the organization has loyal customers and a positive reputation.

Is there any negative impact of legal cases against the organization within the community or its customers? How might this impact their choice of a healthcare provider?

An investigation by the Federal Trade Commission on account of the merger’s distrust has the potential to result in negative consequences. For instance, the Chestnut County union leaders accused ECRHS of using its significant market share in oncology and cardiology services to push patients to its medical centers. If these allegations materialize, the organization will divest its ownership in the Chestnut Care insurance venture. Equally, such a legal case will lead to financial losses, tarnished reputation, and poor competitiveness. The ramification of a tarnished brand image is the potential loss of the grasp of market control and consumer loyalty, leading to proportional gains for competitors.

How have your acquisitions of other healthcare facilities impacted your organization’s brand image and consumer choice?

The three medical centers grappled with deteriorating brand image before merging in the last decade. The merger created opportunities for new management and other positions to bolster coordination and improve care delivery. Also, the appointment of a new Chief Executive Officer (CEO) brought about a rejuvenated determination to develop infrastructure and revamp marketing strategies to thrive in a competitive market and improve services. Therefore, it is valid to argue that the merger has significantly influenced ECRHS’s brand image and improved customer choice of the organization.

How has your handling of the COVID-19 pandemic impacted your brand image?

ECRHS continues to play a significant role in implementing all Covid-19 guidelines and protocols, including cleaning and disinfecting all living spaces, screening all staff and patients, implementing mandatory personal protective equipment, social distancing protocols, and guidelines for face covering and hand washing. Apart from these approaches, the organization has integrated telehealth technology into daily operations to provide safe and coordinated remote care. These strategies have enhanced the brand image by strengthening its reputation and enhancing customer loyalty and choice of the organization.

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What impact do your branding strategies have on consumer choice and bargaining power?

Emphasizing customer-centered services has enhanced consumer choice and bargaining power by cultivating public trust and ensuring consumer satisfaction. ECHRS’s branding strategy focuses on product differentiation, customer segmentation, and positioning. For instance, over 70% of women in Chestnut County rate ECRHS as a reputable organization for providing women’s health services. These branding strategies have increased the organization’s market control and broadened its consumer base.

Part II: Competitive Strategies Impact

Who are the three largest competitors, and how do their offerings differ from those of ECRHS?

Banford Medical Center (BMC) is the largest competitor of ECRHS and provides nearly the same care services as the ECRHS, including women’s health, orthopedic, cardiology, ambulatory, and oncology services. Another competitor is the hospital and a medical school in Chestnut city. This institution serves the needy by offering general hospital, surgical, and medical-academic services. Compared to ECRHS, this organization provides fewer services. Finally, an orthopedic and behavioral hospital attached to ECRHS posed competition, although the merger closed it. This allied institution provided orthopedic and behavioral services.

What share of the market do the competitors hold?

Undeniably, ECRHS controls a large section of the market. However, competitors like BMC have implemented strategies that capitalize on organizational failure and mistakes. ECRHS controls about 60% of the cardiological market and 52% of the oncology market, meaning its competitors hold 40% of the cardiology market and 48% of the oncology market, respectively. The organization should implement strategic marketing approaches to beat competition from BMC and other healthcare organizations.

What is the threat of new entrants to the market and the organization?

Like in other industries, the entry of new firms and organizations can increase competition and alter the market control of the incumbent organizations. According to Bruijl (2018), new entrants to an industry bring new capacity and the desire to gain market share. These aspects pressure the prices, costs, and investments necessary for competition. Therefore, ECRHS is wary of new organizations and establishes advanced and ethical strategies to beat the competition.

What is the threat of competitive/substitute products/ services to the organization?

Like new entrants, competitive, substitute products and services could negatively impact the organization’s brand image by altering the institution’s customer choice and pricing dynamics. Goyal (2020) contends that the threat of substitutes is high when there is consistency between attractive prices and proper performance. Therefore, ECRHS should conceptualize sustainable mechanisms for coping with competitive or substitute products.

What is the bargaining power of customers in the market?

The bargaining power of consumers is the pressure that customers inflict on organizations to provide higher quality products, lower prices, and improve customer service. In Chestnut County, consumers have relatively potent bargaining power, considering the ability to influence service quality. For example, about 43% of women in the county expect same-day appointments. In the same breath, 36% of the women in the service area would travel across counties to receive excellent women’s health services. These demands prompt healthcare organizations to provide quality, convenient, and affordable care.

How does this bargaining power impact consumer choice in the market and for ECRHS?

Undeniably, the bargaining power of consumers pressurizes healthcare organizations to improve service delivery mechanisms, including bolstering timeliness, efficiency, and affordability. In Chestnut, consumers have established demands for healthcare institutions, including same-day appointments. To meet this demand, ECRHS should have adequate medical staff and robust systems. Therefore, it is valid to argue that consumers’ bargaining power positively influences their choice in the market and for East Chestnut Regional Health System.

References

Bruijl, G. H. Th. (2018). The relevance of porter’s five forces in today’s innovative and changing business environment. SSRN Electronic Journal, 1(1), 1–23. https://doi.org/10.2139/ssrn.3192207

Chestnut Health Systems. (2022). Safe with Chestnut. https://www.chestnut.org/covid19/

Goyal, A. (2020, July 23). A critical analysis of Porter’s 5 forces model of competitive advantage. https://ssrn.com/abstract=3765758

Kotler, P., & Armstrong, G. (2019). Principles of marketing (17th ed.). Pearson Higher Education.

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Assignment Directions
Review Case Study: East Chestnut Regional Health System. Assume upper management of the organization is interested in understanding the
impact its branding and competitive strategies have on consumer choice, as well as the impact of the bargaining power of consumers in the health
care market, especially on your products and services.
Prepare a 1,050-word summary of ECHRS’s branding and competitive strategies’ impact on consumer choice and branding power
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 the current branding strategy of ECRHS?
• How is 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 health care provider?
• How have your acquisitions of other health care facilities impacted your brand image and consumer choice of your organization?
• How has your handling of the COVID-19 pandemic impacted your 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 3 largest competitors, and how do their offerings differ from those of ECRHS?
• What share of the market do the competitors hold?
• What is the threat 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 bargain power impact consumer choice in the market and for ECRHS?
MHACB/506 Competency 2 Rubric
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