According to the Boston Consulting Group growth-share matrix, Athletix institution has a higher level of graphical form that will help it realize higher performance. Its services as presented in a graphical form help in decision making on what it should invest, keep or provide more in. The Boston Consulting Group growth-share matrix illustrates that Athletix healthcare organization has all its offerings in a four square matrix where the x-axis will represent the market share and the y-axis represents the rate of growth of the market of the services provided.
The four square matrix which literary represent dogs, cash cows, stars and question marks respectively, will each have a representation of the services provided by Athletix. The services from the company with a low market share and a low growth rate market has been be considered as primary care under the dog matrix and thus can be sold. Services which are in low growth regions but have a large market share such as operations will be considered cash cows and the institution will milk it for as long as possible (Heidingsfield & Blankenship, 2015). Othorpaedetrics services provided by Athletix are considered to be in high growth markets as well as have a large market share will be considered as stars and the institution will invest more in them.
Use your promo and get a custom paper on
"Marketing Analysis".
However, physical health therapy services will be considered to be in high growth rate markets but Athletix does not maintain a large market share and are therefore considered questionable opportunities and the company will facilitate their further analysis (Chernev, 2013). Neither will this tool take into account new, disruptive services entering the market such as maternity nor shifts in the demand of customers such as optic services. Thus, it will not be considered a predictive tool. For this reason, attention will be enhanced in planning for contingencies for the development of services provided by Athletix.
Uisng the Ansoff Matrix, the institution has developed strategies that enhance business growth. This is conducted by examining the relationship between existing and new services and products and markets with the associated risks of every relation. To facilitate this, Athletix has relied on four major strategies namely; penetration in the market, product development, Diversification and market development (Chernev, 2013). The company has particular contemplated that is will realized 30% growth through the introduction of products and services that are new or existing in new or existing markets. In designing of this strategy, existing and new products and markets have been plotted with the amount of risk associated with the corresponding strategy in a grid. Hence, developing strategies with existing markets and products has a low risk and the vice versa will also be true for Athletix.
Our company, being a healthcare facility that will operate in a very competitive environment will make sure it operates in a manner that it can earn a significant Return on Marketing Investment (ROMI). The profit that is attributed to Athletix: Sports Concussion Clinic from marketing activities will depend on the net marketing spending and the investment risks in the marketing activity. Athletix: Sport Concussion Clinic will ensure that its marketing activities and the overall spending in the marketing is effective and yields enough income for its services provision.
Athletix: Sport Concussion Clinic will compare the revenues earned from its marketing activities against the overall expenditure in the marketing campaign from this calculation, it is expected that the ROMI for our company is 15%, indicating that all the marketing activities of the company have been effective (Chernev, 2013). Thus, it will make a decision on investing in its marketing activities based on the effectiveness of the services provided by the marketing campaign. Thus, all the future investment allocated to the marketing initiative must be aligned to their ability to generate enough income for the company.
The breakeven point of Athletix: Sport Concussion Clinic will determine the number of services which it has to provide to remain afloat in the competitive healthcare sector. The breakeven point in a number of services and patient served is important to our facility to ensure it continues to generate enough revenue that can translate into profits throughout. (Chernev, 2013). To ensure that our healthcare facility continues to achieve success in provisions of healthcare service, our company will focus on ensuring that it provides service above the break-even point so as to earn a profit. The breakeven point will also enable our company to set the price of the healthcare services provided efficiently and effectively. The profit points of our healthcare facility are determined by the level of breakeven points in terms of the number of services offered to the clients and their respective pieces. The price of the services is 60$ per hour session (for customers) and 40$ for employee.
The break-even point in terms of units of service offered provides enough information that acne is used to ascertain the profitability of the company. This is particularly so because the variable unit costs of providing healthcare services at our healthcare facility are set at 8888. Therefore, whenever our healthcare facility will be providing service, the focus will be to ensure that all the variable unit costs are factored into the price charged for the services.
Our healthcare facility has ensured that the fixed costs of providing healthcare services remain as low as possible. Currently, the healthcare facility has set its fixed cost at $300, a cost that are easily offset form the price of healthcare services offered (Chernev, 2013). To determine the price of each healthcare service offered at our facility, we factor in the fixed and variable costs into the calculation it is from this point that our healthcare facility determines the unit price and the number of services offered to the patients before determining the breakeven point at which its healthcare services must remain constant. The execs of the unit price and the costs of providing the services will determine the contribution margin level of our healthcare facility.
Our healthcare facility will choose to maintain the margin of safety in the provision of healthcare services to ensure that it operates within the breakeven point of sales (Heidingsfield & Blankenship, 2015). Besides, it will ensure that it adjust its price levels depending on the demand for the healthcare services offered to ensure that it maintains its sale volume and remain within the margin of safety. This means that the company will be vigil with its variable costs that may keep on changing as the level of demand changes.
Using Target Profit Pricing analysis, we can ascertain that the number of services that the health care facility should provide and the number of patients served must be 500 in every month. It is only at this point that the healthcare facility will be in a position to cover all the fixed and variable costs incurred in provisions of the services (Heidingsfield & Blankenship, 2015). Our healthcare facility will be able to generate profit in its sales activities since there will be a margin of contribution amounting to $320. The required sales volume from this Target Profit Pricing analysis indicates that each service offered by the healthcare facility must not cost less than $100 per service.
Our healthcare facility is fully aware of the consequences of either reducing or increasing the price of the healthcare serves offered. It effects on the demand the healthcare service will take the ordinary shape of a demand curve (Chernev, 2013). Thus, our facility will rely on the unit of the contribution it earns in every service provided and the demand function which in this case is the price of the healthcare services offered and the fixed costs of the healthcare’s revenue provisions. Such analysis indicates the price of the healthcare service must be varied from time to time with respect to the demand of the healthcare serves so as to maintain the number of customers served.
Our healthcare facility is determined to achieve a specific level of profit every year which is its target profit. However, our company must consider the cost of providing services, the volume of services offered and the patients attended in determining its target profit. (Heidingsfield & Blankenship, 2015). Our company hopes to achieve this target profit by adjusting its contribution margin per unit of service based on the anticipated demand for the healthcare services.
