Industry Attractiveness BCG
In star, the technology system falls under the star box, and they are the primary activities that KPJ healthcare should invest its money, because stars are expected to become cash cows and generate positive cash flows. So, to maintain the star position or else to cash cow, KPJ healthcare need to choose any of these strategic choices such as vertical integration, horizontal integration, market penetration, market development, product development.
In cash cows are the most profitable brands or company in low market growth position. Healthcare should be “milked” or harvest to provide as much cash as possible. Even under this box the company might have low growth market but they still high in the market…show more content… Beside that it also has strong corporate brand name and established reputation and commitment in providing quality care by deliver quality healthcare service that shows the level of the commitment of KPJ. In weakness KPJ has high risk of corporate governance, no Joint Commission International (JCI) accreditation and perishable medicine expiration, medicine need to be remove once expired where the medicine management need to put extra effort on the storage temperature and humidity, and need to modernize information technology which KPJ do not have the information system called (KCIS) which will cause operation slow…show more content… The company can also choose to be dominant in a few different niches and combine this with the concept of being outstanding to a certain group of customers. It can also help clarify its strategy by making sure it understands what it is not. The company would assure that they are not likely to be a low cost leader in future thus the company will be a high quality and high satisfaction hospital. can be both dominant in several niches and still very customer centric. The company can be both dominant in several niches and still very customer centric. However, to choose to be both dominant in several niches and/or truly customer centric, and at the same time a cost leader. In essence, the resources needed to be truly customer centric or to be dominant in a certain niche area typically don’t line up well with also being a complete cost leader in an area. Differentiation based on price in healthcare traditionally has had limited success due to the actual or perceived reluctance of patients to sacrifice any significant measure of quality for corresponding cost savings and the lack of information available to compare cost and quality. For example, where the consumer is insulated from the true cost of providing the service, as is the case with a great deal of health care services, the consumer has very little incentive to economize. A growing category of exceptions, however, revolves around insurance plans