Essay: Adequate Market Research at Grant Clinic Inc
Since another hospital system has announced that it will be building a hospital there soon, it can be argued that Grant Clinic Inc. is facing a threat of lack of adequate market research. If there was adequate market research at Grant Clinic Inc., the management of the firm could have been advised to build a medical system in the new community. It could also been possible to seek for ways in which the firm could extend its services there even if not by building a branch there. The management of Grant Clinic Inc. could have been able to announce its entry to the community first, before any other medical firm does so.
The fact that Grant Clinic Inc. can only capture a portion of 25% from the 24,000 residents shows that there is stiff competition. This market share is quite small and the firm has to look for ways of attracting more customers and even entering other new markets to ensure its growth. Considering the current flexible budget for the firm, it is evident that there are more expenses incurred in serving a very small proportion of customers. The firm should thus conduct thorough research to be able to maintain its costs the minimum while increasing the sales. This research can include the effective ways the firm can employ in advertising its services to the target market.
The above listed external pressures faced by Grant Clinic Inc. have resulted to reduction in performance. The market share of the company is not reported to be growing but rather dormant. This is a threat to the firm since as the living standards are rising; the expenses of maintaining the clinic are increasing while the funds to support it are fixed.