Mktg 2127 Final Paper - Home Nursing Services

MKTG 2127 – Winter 2017

Final Paper

April 25, 2017

Section 1: Executive Summary

Carol Crane is the executive director for National Health Services.  HNS is a local not-for-profit organization that provides the community with nursing services for those in need.

Looking at the facts in the case, a decision to determine if the firm should expand by offering a less skilled variation of home services, in which meal preparation, bathing, and dressing clients is the main focus, in addition to the nursing services which is already offered.  Expansion like this has already occurred in two close by larger cities, and are thriving.

Based on the facts in this case it was determined that expansion into this total home healthcare plan was a good idea, and should be implemented right away.

Section 2: Situational Analysis

Carol Crane runs Home Nursing Services (HNS), which provides medically necessary nursing services throughout the community as a non-profit organization.  Carol is concerned with her industry, as she believes that the market will change has it had in two other cities which are located close by.  

Carol is considering offering more services to customers whose insurance runs out or to customers who are looking for a personal support worker/aide to help with meals, cleaning, and/or personal hygiene.

SWOT Analysis:

Marketing Mix:

• Product: Offering “care and comfort” services on top of already existing nursing services
• Price: $9 - $16 per hour up to $75 per day
• Promotion:   Affordable healthcare for everyone
• Place: In home care services for those with need.

Porter’s 5 forces analysis:

• Industry Competitors:   High competition between for profit and not for profit firms exists.  For profit firms are able to offer current services at a fraction of the price of NHS, and can do so making a substantial profit.  

• Potential Entrants: High threat of entry into the market as the industry looks to change from just offering nursing services to offering complete healthcare services.

• Availability of Substitutes:  Alternatives exist through hospital private clinics or other third party firms.

• Buyer Power:   Based on recommendations from health institutions.

• Supplier Power:   Low.  Nursing care is regulated by the government.

PEST Analysis:

• Political:   Depending on government decisions regarding health regulations.  These regulations change frequently when people are hurt or better processes are found, so this would be a factor in the decision to expand.  If the government decides to stop paying for certain services currently covered, it might be harder to find clients willing to pay themselves, or clients that have their party insurance.

• Environmental:  The last two years have been difficult due to a weakened agency image.  NHS is rebuilding and looking to rebrand itself as an industry leader in health care.

• Socio-Cultural:   Home healthcare services are in demand as the population grows older.   Many people are able to recuperate at home after a hospital visit due to nursing services offered in home to patients.  

• Technological:   Small factor in this case.  NHS is able to efficiently increase its customer base due to having a reliable administrative department complete with computer systems developed over the last two years.

Section 3: Problems Found in Situational Analysis

Shifting to total home healthcare options

Industry changes noticed in other cities in close proximity dictate that total healthcare services are in demand, and needed within the community.  More single parent and dual income families are unable to care of the total health needs of their family members, including aging parents and/or other relatives.

Most elderly citizens require the most care, as everyday tasks become more burdensome to complete.  There are also those that require help with everyday menial after a major surgery or illness, in which they often struggle to find care at reasonably affordable prices.

Ignoring the opportunity to expand will impact HNS as it struggles to remain profitable and a going concern.  HNS has the ability to provide less skilled home services because it has seen and heard what clients need and demand.  If HNS passes up on this opportunity, other firms will segment the market further and HNS might likely fail due to loss in marketshare.