Reference no: EM133035382

Instructions - For each of the scenarios below, your tasks are to:

1. Decide which expanded BCG matrix plot best describes each situation.

2. List the various strategies that seem to make the most sense for the circumstances.

3. Identify the recommended strategy and your rationale for selecting it.

Scenario 1

A substance abuse clinic has achieved a high market share position in service category that is fairly stable, having a relatively low market growth rate.  The clinic has very little in high-tech medical equipment, and expenses are mostly related to salaries with overhead costs similar to the hotel industry.  The patients consist mostly of wealthy and famous clients that routinely check themselves into the facility for several weeks at a time; the clinic is highly profitable.

Scenario 2

A cataract surgery specialization clinic is well established and has a decidedly high market share in a high growth market.  Most of the residents in their service area are elderly.  Lately, profitability has been marginal since over 60% of their patients are on Medicare and that number is expected to increase as projected by recent census demographics. 

Scenario 3

A cardiology specialty has a high market share in a very high growth market.  They are a well known and respected facility, therefore patients are willing to travel to get there and accept a wait time of up to three months for an appointment.  The center is highly   profitable.       

Scenario 4

A major regional health care system purchased and renovated storefront space in a small rural town's strip mall to open an ambulatory care center.  They purchased all new furnishings and medical equipment, and during their first 6 months began to see signs that they would at least break-even on their investment.  In December, the town's major industry closed down and laid-off 600 employees, effectively putting nearly 10% of the town's people in unemployment and creating a mortgage foreclosure crisis and exodus from the area by many seeking work elsewhere.  Since the center has been open less than a year, it has a small insignificant market share and a major competitor is located only 35 miles away, in a much larger community.  The center has suffered major losses in profitability as a result of the recent unforeseen economic downturn.