Free Essay with a Case Study of Methodist Healthcare, Memphis

Published: 2022-04-18
Free Essay with a Case Study of Methodist Healthcare, Memphis
Type of paper:  Essay
Categories:  Health and Social Care Strategic management
Pages: 2
Wordcount: 419 words
4 min read

The Methodist Healthcare was founded in 1918 and located in Memphis, Tennessee. It operates as Methodist University Hospital in an oligopolistic Memphis healthcare market three other main competitors: St. Francis, The Med and Baptist hospitals. Competition ensures providence of quality healthcare services to customers and at affordable prices. In the 1980s, the Methodist's market share on the number of patients declined significantly because of competition within the industry and new rivals in the industry (Gamble, 2014). Strategic management is needed in every organization since it has several benefits as it guides to achieving organizational strategic goals when well planned, formulated, evaluated and controlled by management (Shortell, 2011).

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In response to the competition threat in the Memphis healthcare market, Methodist Healthcare employed several strategic measures to maintain its competitive advantage, increase market share and win new customers. Between 1980 and 1985, Methodist Healthcare implemented a grand strategy of acquiring several hospitals in the market some on a lease with an option to purchase back and others on management contracts (Tuckman, 2012).

Also, the organization ventured on products and services diversification and specialization to gain a competitive advantage. On product diversification, new products were introduced with technology creating new acute care specialties like CT scans; new programs were funded to provide incentives for the hospital to treat specific illnesses and special treatments like stroke rehabilitation not available in other healthcare providers. This strategy attracted new customers, increased profits and reduced the risks from offering limited product lines. Again, Methodist Healthcare introduced children's hospitals to treat children's leukemia and mental hospitals to treat related mental illnesses among other. Specialization signals expertise and a customer is more likely to choose a specialized service. Lastly, Methodist hospital used differentiation strategy to increase profits and attract patients and physicians through affiliating prestigious doctors with specialty practices, unique product lines, advertising the latest devices, medical procedures, and equipment to mention but a few (Madsen, 2015).

In conclusion, increased competition in the market should not force an organization to close business but take it as a challenge and devices competitive strategies to overcoming it. Every competing firm in the industry should have strategies to guide the operations towards achieving organizational strategic goals. Strategies are basic requirements for a firm to sustain and survive in the changing economic environment (Shortell, 2011).


Gamble, J. A. (2014). Essentials of strategic management. Mcgraw.

Madsen, w. (2015). Modern Competitive strategy. Mcgraw-Hill.

Shortell, K. (2011). Health Care Management Organization Design and Behavious. New York: Delmar Cencage .

Tuckman, H. (2012). The impact of the medical Community A Memphis Case Study. Mid- South Business Journal.

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