Want FREE Templates on Digital Transformation? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.







Flevy Management Insights Case Study
Strategy Development for a Healthcare Service Provider to Improve Market Position


There are countless scenarios that require Strategy Development. Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Strategy Development to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, best practices, and other tools developed from past client work. Let us analyze the following scenario.

Reading time: 7 minutes

Consider this scenario: A rapidly growing healthcare service provider is finding it challenging to articulate a clear and coherent Strategy Development for business growth.

The company has increased its customer base by 40% in the past year, whereas revenues have stayed relatively flat. This suggests a lack of strategic direction and inability to leverage growth for profit maximization.



Given the scenario, the possible reasons driving the organization's challenges could be a poorly defined value proposition, ineffective Go-to-Market strategy, or a lack of alignment between strategic goals and execution plans.

Methodology

A 4-phase approach to Strategy Development can be employed to address the identified issues:

  1. Strategic Diagnosis: An in-depth analysis of the current business model, capabilities, and market position can shed light on potential areas for improvement. Key activities include customer segmentation analysis, value chain analysis, and competitive position assessment.
  2. Strategy Formulation: After identifying strategic gaps, a clear and focused strategy will be crafted. This includes developing a value proposition, setting strategic objectives, preparing key performance indicators (KPIs), and designing a robust Go-to-Market strategy.
  3. Strategy Implementation: Upon strategy approval, a detailed implementation plan will be prepared. This includes project management, resource allocation, establishing monitoring and reporting systems, and change management plan.
  4. Monitoring & Evaluation: Regular progress tracking and performance assessments are critical to ensure alignment with the strategic objectives and to make any necessary strategic adjustments.

Learn more about Change Management Strategy Development Project Management

For effective implementation, take a look at these Strategy Development best practices:

KPI Compilation: 800+ Corporate Strategy KPIs (186-slide PowerPoint deck)
Complete Guide to Strategy Consulting Frameworks (144-slide PowerPoint deck)
Strategic Planning: Hoshin Kanri (Hoshin Planning) (153-slide PowerPoint deck and supporting ZIP)
Complete Guide to Business Strategy Design (51-slide PowerPoint deck)
Chief Strategy Officer (CSO) Toolkit (324-slide PowerPoint deck)
View additional Strategy Development best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Managing Stakeholder Concerns

The potential concerns likely to be raised by the CEO about the proposed methodology could be regarding its effectiveness, duration, and cost implications.

Our approach has been designed through identification of industry best practices, ensuring its effectiveness. The duration and cost implications can be minimized through efficient implementation and by leveraging existing resources.

Learn more about Best Practices

Case Studies

A notable case study is that of Stryker, a Fortune 500 medical technologies firm. They followed a similar 4-phase approach resulting in improved sales growth and profitability.

Explore additional related case studies

Sample Deliverables

  • Current State Diagnosis Report (MS Word)
  • Strategy Development Plan (PowerPoint)
  • Strategy Implementation Calendar (Excel)
  • Go-to-Market Blueprint (PowerPoint)
  • Performance Tracking Report (MS Word)

Explore more Strategy Development deliverables

Aligning Strategy with the Organizational Culture

A critical success factor often ignored in Strategy Development is the importance of ensuring alignment with the organization's culture. It is key that our developed strategy reflects the values, attitudes, and beliefs of the organization, creating an open and receptive environment for strategic shifts.

Strategy Development Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Strategy Development. These resources below were developed by management consulting firms and Strategy Development subject matter experts.

The Future is Digital

As the world moves towards a more digital future, the 'digital aspect' of strategy cannot be ignored. Therefore, part of the strategic approach will include assessing the company's digital maturity and readiness, and recommending suitable digital initiatives for enhanced competitive advantage.

Learn more about Competitive Advantage

Optimizing the Go-to-Market Strategy

To further refine the Go-to-Market (GTM) strategy, a detailed analysis of the customer journey is critical. Customers today expect a seamless experience, from awareness to post-purchase support. By mapping out the customer journey, identifying key touchpoints, and understanding customer pain points, the healthcare provider can develop more tailored offerings and marketing strategies. The GTM strategy should encompass strategic pricing, channel optimization, customer experience enhancement, and a clear communication plan. The company must also consider how it measures success in the market, including lead conversion rates, customer lifetime value, and churn rates. Adequately addressing these dimensions can improve the GTM effectiveness, leading to better revenue generation from the expanded customer base.

A robust GTM strategy will also need to factor in competitors' actions and market trends. For example, industry research by McKinsey shows that "personalization at scale" can grow revenue by 5-15% (McKinsey Quarterly, 2020). The healthcare provider could adopt a similar approach, potentially developing personalized health plans or engaging customers with AI-driven health monitoring tools.

Learn more about Customer Experience Customer Journey

Developing a Digital Transformation Strategy

The incorporation of digital technology into all areas of the business is not a mere addition but a transformative shift in how the company operates and delivers value to customers. A digital transformation strategy starts by assessing the current digital maturity of the company across various domains such as customer interactions, operations, and business model innovation. The strategic recommendations might include investing in electronic health records (EHRs), telehealth services, and mobile health applications, all of which can enhance customer engagement and operational efficiency.

For example, during the COVID-19 pandemic, companies that rapidly adopted telehealth saw significant growth in patient adoption rates. A report by McKinsey indicated that the use of telehealth had increased 38 times from the pre-COVID-19 baseline (McKinsey & Company, 2021). Hence, by not only leveraging the current digital trends but also by identifying future technological advancements and adapting to them, the healthcare provider can position itself ahead of its competitors and achieve sustainable growth.

Learn more about Digital Transformation Business Model Innovation

Value Proposition Refinement

Understanding and articulating a compelling value proposition is paramount for differentiation in the market. The company must delve deep into what makes its services unique and how these benefits meet the needs or solve the pain points of the target customer segments. This step involves synthesizing insights from customer feedback, market research, and internal data. A sharpened value proposition can guide marketing efforts, product development, and customer service enhancements.

The value proposition should not only consider the functional benefits, such as cost savings or improved health outcomes, but also the emotional and social benefits. For instance, the company could emphasize peace of mind through reliable health services or the community aspect by highlighting patient support groups. With a more compelling value proposition, the healthcare provider will be able not only to attract new customers but also to retain existing ones, which is a critical aspect of ensuring sustainable revenue growth.

Learn more about Customer Service Value Proposition Market Research

Strategic Alignment and Execution

Execution is the bridge between strategy and outcomes. Ensuring organizational processes and resource allocations are synced with the newly developed strategy is vital. This alignment might require restructuring certain departments, integrating new technologies, or introducing new operational processes. Moreover, the company should have a clear execution roadmap that breaks down strategic objectives into actionable projects and initiatives.

Success in this area also relies on having the right talent and fostering an organizational culture conducive to change. As per a Bain & Company report, companies that align their culture with their strategy could see revenue growth of above 20% (Bain & Company, 2014). By focusing on change management, leadership development, and continuous communication, the company can navigate the transition smoothly and avoid potential resistance.

In summary, by optimizing GTM efforts, engaging in digital transformation, refining the value proposition, and ensuring strategic alignment with execution, the healthcare provider can build on its current customer base growth and translate it into revenue enhancement. More so, these steps will set the foundation for resilience, adaptability, and continued success in an increasingly competitive healthcare market.

Learn more about Organizational Culture Revenue Growth

Additional Resources Relevant to Strategy Development

Here are additional best practices relevant to Strategy Development from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Implemented a refined Go-to-Market strategy, resulting in a 15% increase in revenue within the first year post-implementation.
  • Launched telehealth services and mobile health applications, achieving a 25% increase in patient adoption rates.
  • Developed and articulated a compelling value proposition, leading to a 20% improvement in customer retention rates.
  • Executed a digital transformation strategy, enhancing operational efficiency by 30% through the adoption of electronic health records (EHRs).
  • Restructured organizational processes to align with the new strategy, contributing to a 20% revenue growth aligned with Bain & Company's findings on culture-strategy alignment.
  • Conducted a detailed customer journey analysis, improving lead conversion rates by 18% and customer lifetime value by 22%.

The initiative has been markedly successful, evidenced by significant improvements in revenue, customer retention, operational efficiency, and market competitiveness. The adoption of a refined Go-to-Market strategy and the launch of digital health services were particularly impactful, directly addressing the initial challenge of leveraging customer base growth for profit maximization. The alignment of organizational processes and culture with the new strategic direction played a crucial role in these achievements. However, there's an indication that even greater success could have been achieved by earlier and more aggressive investment in digital transformation and customer experience enhancements, suggesting that the company could have potentially outpaced competitors further by preempting market trends.

For next steps, it is recommended to continue investing in digital innovation, particularly in areas of AI and machine learning for personalized health plans and predictive health analytics. Further refinement of the customer journey with a focus on personalization at scale could yield additional revenue growth. Additionally, exploring strategic partnerships or acquisitions to enhance service offerings and expand market reach should be considered. Continuous monitoring and adjustment of the strategy in response to market feedback and competitive dynamics will be essential to sustain growth and market leadership.

Source: Strategy Development for a Healthcare Service Provider to Improve Market Position, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.