Question

Three approaches to achieving competitive advantage for a business are cost leadership, differentiation, and focus. In your own words: Is it possible for a community hospital to use both a cost leadership and differentiation method with separate services in the hospital? Support your answer with rationale. (150 words minimum)

Answer 1

Effective cost leadership requires to develop policies with low cost in the healthcare industry. Low-cost leadership may have many issues with the management of the health care plan, implement health care policies, and improved patient outcome. Differentiation is the providing of services to the clients that are unique and based on the client needs. Differentiation focuses on higher profit levels. When combining these two strategies of cost leadership and differentiation, the organization has to provide services with high quality at a lower cost for the client and at the same time patient outcomes and satisfaction has to be achieved. The hospital management has to maintain these two disciples with advanced capabilities and trends. The hospital has to be excellence in providing of in- services based on the patient's intimacy and cost reduction. The cost advantage can be achieved through operational excellence. The community hospital has to maintain a standard organization culture, providing a comfortable environment with empathetic people, and delivery of care with needs. Thus these two disciples can be possible with the meeting of continuity demand, quality, cost, and patient satisfaction within the organization.