Scarlet Hospital’s Offensive Marketing Strategy

Subject: Company Analysis
Pages: 5
Words: 1170
Reading time:
5 min
Study level: College

Preparedness of Scarlet Hospital to Compete with Medical Facilities in Salem

Scarlet Hospital was prepared to compete with medical facilities based in Salem, even before the establishment of the highway. Some of the factors that substantiate the high level of preparedness in Scarlet Hospital comprise the provision of high-quality services to patients irrespective of the little competition and inclusivity of employees. According to Schröder (2015), quality is one aspect that determines the scale of competition in organizations. It is evident in the case study that Timothy, who is the Chief Executive Officer (CEO), strives to ensure that the healthcare services delivered to patients are high end and exceptional. Regardless of the little competition faced by Scarlet Hospital, the CEO works hard to ensure that patients receive services that match those services offered modern healthcare facilities.

Consequently, Timothy also involved employees in aspects that affected the facility. For instance, after realizing that the highway’s development would affect the operations in the hospital, he called all the managers and devised an all-inclusive plan. Chevallier (2016) states that smart managers include their employees in decision making and operations that affect the organization’s market share. By striving towards the delivery of high-quality services and focusing on employee inclusivity, Scarlet Hospital demonstrates a high level of preparedness that facilitates effective competition with Salem facilities.

Complacency Lessons from the Case

The case’s relevance cannot be underscored as it amplifies the knowledge that medical executives need to address the issue of complacency. By reading the case, healthcare executives get insights on the importance of working hard and ensuring that services are up to the required standards even in the absence of competition. From the study, it is clear that Scarlet Hospital operates in an area that is not competitive. After the merger, Scarlet Hospital remains the only hospital providing healthcare services in the region. Schröder (2015) alludes that regardless of competition, organizations need to ensure that their services match consumer expectations in terms of quality. In the case, it is clear that irrespective of the little competition evident in the region, Timothy ensured that patients received top-notch services each time they visited Scarlet Hospital. It is important that healthcare executives do not practice complacency but should always look for ways that advance the quality of services regardless of the prevailing competition.

Application of Porter’s Five Forces Model and SWOT Analysis in Decision Making

In facilitating effective decision making, stakeholders in medical facilities should utilize the concepts presented by Porter’s five forces model and SWOT analysis. The concepts are very important in effective decision making in Scarlet Hospital. The components outlined ie, Porter’s five forces model, are very beneficial in advancing the quality of services offered by the hospital and improving its operations in the competitive market. The threat of new entrants, the threat of substitute products, bargaining power of suppliers, and buyer’s bargaining power are the elements he Porter’s five forces model (Magretta, 2012). By considering the components outlined by the model, Scarlet Hospital can make effective decisions that propel it toward the achievement of the much-desired success. From the study, it is evident that Timothy understood the model and strived to deliver high-end services and included his employees in the decision-making process. The practices led to the hospital’s high level of preparedness, even in the wake of Salem’s apparent competition.

On the other hand, SWOT analysis is core in boosting the quality of decisions made by the hospital. The analysis helps the hospital understand its weakness, strengths, opportunities, and threats. It is principal to state that a we-l designed SWOT analysis helps the hospital look at the market from an informed perspective. In the assertion of Rajagopal (2013), understanding the organization’s strengths and weaknesses is critical in the attainment of client satisfaction. The ability to match patient expectations occurs because the facility understands the areas that require adjustments and those that they should capitalize on. Furthermore, through the analysis, the facility will also study the market gaps and use them to succeed. Notably, the positioning strategy demonstrated by Scarlet Hospital even before the development of the highway is a clear indication that Timothy knew the essence of SWOT analysis and its application in service delivery.

The Role of Balanced Scorecard in Development of a Defensive Marketing Strategy for Scarlet Hospital

A balanced scorecard model (BSC) is very useful for organizations because it facilitates the alignment of operations and set targets. In developing a defensive marketing strategy, the driving forces behind the development comprise the provisions outlined by the scorecard. Rajagopal (2013) explicates that organizational goals are one of the major outcomes associated with the balanced scorecard model. In the study, the target of Scarlet Hospital was to outsmart competitors from Salem and continue enjoying the initial market share. To ensure continued retention of the market share, the company had to develop a defensive marketing strategy focused on the set target as per the provisions of the balanced scorecard model. As such, the balanced scorecard model played a pivotal role in ensuring that Scarlet Hospital aligned itself to its desired goal of retaining its market share and outsmarting competition posed by medical facilities from Salem.

Offensive Marketing Strategy for Scarlet Hospital

The offensive marketing strategy that Scarlet Hospital needs to adopt in the wake of an imminent competition posed by medical facilities from Salem should utilize factors such as branding, communication, and innovation. From the case, competitors from Salem focus on the services that they offer. The main emphasis in their marketing strategy concerns that their services meet the modern standards and supersede those offered by hospitals such as Scarlet. To outdo the competition offensively, the executives from Scarlet Hospital need to research the competing facilities’ strengths and weaknesses. After understanding the competitors’ weaknesses and strengths, Scarlet Hospital should then develop a marketing strategy that outsmarts them by capitalizing on their weaknesses. According to Yannopoulos (2011), firms who desire to win in the deployment of an offensive marketing strategy focus on the weaknesses of their competitors. Scarlet will then communicate the message to its consumers, and in the process, assure them that their services are the best.

Moreover, the company needs to engage in the process of innovation and branding. In several instances, consumers will want to try new services based on their appealing nature. Since most of the patients in the region are used to the services offered by Scarlet Hospital, they can decide to try the services offered by Salem based medical facilities. To retain these consumers, the hospital needs to rebrand itself and innovate some of its services in the quest to create a form of reassurance in their minds. Yannopoulos (2011) explains that rebranding and innovation are some of the factors that offensive firms can utilize in outsmarting their competitors. By rebranding, improving its services, and devising a well-designed medium of communication, the hospital will be able to outsmart its competitors using an offensive marketing strategy. It is vital to allude that an offensive marketing strategy focuses on an indirect attack on competitors.


Chevallier, A. (2016). Strategic Thinking in Complex Problem Solving. New York: Oxford University Press.

Magretta, J. (2012). Understanding Michael Porter: The essential guide to competition and Strategy. Boston, Mass: Harvard Business Review Press.

Rajagopal. (2013). Marketing decision-making and the management of pricing: Successful business tools. Hershey, PA: Business Science Reference.

Schröder, H. (2015). Integrated sales and marketing management: Successful integration of marketing and sales after mergers & acquisitions. Hamburg: Anchor Academic Publishing.

Yannopoulos, P. (2011). Defensive and Offensive Strategies for Market Success. International Journal of Business and Social Science, 2(13), 1-12.