Longevity Healthcare Systems: Hunting for a marketing strategy

Résumé du document

The population of the US is getting older. Many companies are benefiting from this demographic change, especially those in the healthcare industry. One such company is Longevity Healthcare Systems. We will perform a SWOT Analysis and discuss its relevance to examine the current situation of Longevity Healthcare Systems.

Extraits

[...] Longevity also could look into acquisitions in pharmaceutical and medical supplies. This alternative could provide Longevity with the opportunity to drastically decrease operating costs and therefore increase profits. This alternative would also give Longevity more room to grow, fewer struggles with suppliers, and additional sources of revenue. Despite the positives of this alternative, there are negatives. First, Longevity is not a medical supplier; they are healthcare providers and should probably stick to what they do best. Also the initial cost would be extremely high to acquire any new company. [...]

[...] In addition, the long-term healthcare industry is going through restructuring. Healthcare reform is expected to extend the use of Medicare for at home care. This would pose a major threat to Longevity, because most people would rather be cared for at home than relocate to a hospital- like facility. Healthcare reform is also expected to increase regulation of facilities, which means stricter laws and ways of doing business. Longevity will definitely be affected by healthcare reform, especially if they are not flexible enough to make necessary changes. [...]

[...] “Longevity Healthcare Systems, Inc., strives to provide a variety of services at lower prices.” For this mission, Longevity would need to pursue a strategy of vertical integration. The company has stepped in this direction in the past with the acquisition of their pharmacy. Vertical integration looks to improve the operations of a company by extending operations both forward and backward in the supply chain. Such a strategy would include such activities as getting involved further with medical supply distribution or attempting to acquire another pharmacy or even a pharmaceutical company. [...]

[...] This would take some of the control out of the hands of Longevity management. Also, there is no guarantee that a company would be willing to partner with Longevity; therefore the feasibility of the alternative is uncertain. Analysis Graph Recommendation Our recommendation is for Longevity Healthcare Systems to both diversify operations and to vertically integrate. We feel that this option addresses the current situation and provides the company with both a unified corporate marketing strategy and a means for growth. [...]

[...] Longevity has done this in the past and should seek out opportunities as it did when acquiring their pharmacy in Grand Rapids, Michigan. Acquiring the Toledo pharmacy would be the first step. Longevity could model the operation of the pharmacy in Toledo after the successful acquisition in their original market. This vertical integration allows Longevity to benefit from lower cost prescriptions and control of supply. Another area for integration would be providing in-house physician care to its patients. Also, as Longevity continues to grow it needs to look into either acquiring or entering into a strong partnership with a medical supply distributor. [...]