University of Alabama Birming

For Royal Haven, the long-term care facility in your community,please complete three tasks:

Task 1: The service category is long-term care but what is the service area? Identify the service area and conduct a Service Area Structural Analysis;

Task 2: Identify the key competitors and try to list their strengths and weakness; and

Task 3: Group/Map the competitors into strategic groups.

Task 1

What is the competitive intensity of your service area?

1) Describe your service area (see the last column of Exhibit 2-11on pages 70-72). From how far will Royal Haven draw clients/patient – few miles, the metropolitan area, county wide? Try to define the geographic limits of the catchment area. Is the population declining or increasing, is it an affluent or relatively poor area, etc. Knowing a little about your community will help with the second part of this task.

2) Conduct a Service Area Structural using Porter’s five forces framework. Use Exhibit 3-2 on page 86 as your thinking tool to come up with a table similar to Exhibit 3-3 on pages 94-95.The goal of this exercise it to determine if this is a favorable service category and service area. Are all five factors favorable or unfavorable. Furthermore, what is the future likely to look like. Will the five factors become more or less favorable in time?

Task 2

Who are the organization’s competitors and what are their strengths and weaknesses? Here you are going to have to draw upon what you know about your community and, perhaps speculate a bit. Where are the other long-term care facilities? What is their reputation? Select a couple of competitors and see what you can find out about what they do well and not so well.

A list of strengths and weaknesses and rationale(s) for eachorganization in a table (see Exhibit 3-5 on pages 99-101)

Task 3

What are some dimensions that our competitors can be categorized by?

1) Identify dimensions/critical success factors (practice size, range of procedures/services, and so on) that our competitors can be categorized by (see the description of identifying dimensions on pages 101-102)

2) Identify strategic groups and provide rationale for grouping (see pages 106-107). Who really competes with whom? Organizations within the same service category and in the same service area don’t always compete directly.

3) Map our competitors along these dimensions (see Exhibits3-6 and 3-7 on pages 108-109)

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