Discuss about the Strategic Management for Quest Diagnostics.
Quest Diagnostic is the leading provider of the diagnostics services as well as the solution in the United States. The organization was founded in the year 1967 with the name of Metropolitan Pathology Laboratory, but in the year 1996 it became public and was renamed Quest Diagnostic. The vision of the firm is to empower better health along with the diagnostic insight. The organization also have three goals, and they are; help in the creation of the healthier world, the creation of the inspiring work and building the values. The new strategy of the firm is to give excellence in work every day. The organization generally offer 3000 diagnostic tests which range from a simple blood test to the gene-based as well as molecular testing. The organization also offer the one-stop shop for the diagnostic test at the minimum price. The human resources of the firm are almost 43,000 people, and 74% of these employees are frontline workers. The purpose of the paper is to analyze the external and internal working function of the firm. The detail discussion on Porter’s five forces, pestle, and porter’s value chain, Porter’s generic strategy, core competencies and Asimov analysis will be provided within the paper.
Porter’s five forces are the simple but the powerful tool that helps in understanding the competitiveness of the business environment. In this five industry forces is being utilized for the determination of profitability level as well as competition within the market.
The threats of new entrants in the field of medical laboratories as well as research help to bring innovation to the market (Hamdan, 2017). The organization LabCorp with their suitable pricing strategy and their innovative value proposition to the customers create the threat of new entrants to Quest Diagnostics.
Quest Diagnostic have numerous suppliers, and for that, they do not possess the power of supplier for their profitability ratio (Kay, Porter, Youtie, Newman, and Ràfols, 2017). This is the basic facts that the supplier could not increase their price and the raw materials collected by the firm are of best quality with suitable cost.
Buyers have the considerable power to impact the cost strategy of the firm as they have the option to get the services from other medical laboratories. In this case, the biggest competitors of Quest Diagnostics that is LabCorp is the primary reason that causes huge buyer power for the firm within the market.
The threat of substitute within the market is also high as LabCorp also provides the same type of medical test and services to the customers. People have the suitable and effective option to get their service from a different organization which ever suits them according to their choice (Jenkins, and Taylor, 2017).
The primary competitor of the firm is LabCorp who have won over the United Healthcare Insurance who is the key customers of Quest Diagnostics. The organization has 39 laboratories as well as 1750 centers of patient service in 60 counties.
Pestle analysis is the analytical tool that is used for strategic business planning, and also it helps to understand the external influences within the business (Weber et al., 2017). This model helps to understand the various external factor within the market that create a huge impact for the firm to maintain their business.
US is the second largest democracy all over the world and also they have stable political environment. The political system of the country is having the most effective and suitable infrastructure for the development of suitable organizations (Bock et al., 2017). Quest Diagnostic effectively maintain their business within the suitable political system that allows in the development of the business.
United State is the largest economy in the term of nominal GDP (Clarke, Holmquist, Lee, and Reitz, 2018). The country is also having the availability of cheap labor within the market for the development of business. It is one of the most suitable factors which helps the firm to maintain their position in the market and also provide the best economic condition for the medical services.
United State is the third largest population country in the entire world and their total population is almost 326 million. The country is also having the high quality of labor force, and for that, it became much easier for Quest Diagnostics to maintain their service in the market of United State that will affect their business.
United State is the global leader in the science as well as technology which allow Quest Diagnostics to perform their various test regarding medical treatment. The technology that is being utilized by the organization helps them to provide the most suitable and effective working function for the patients (Sahiti, and Smith, 2017). Various kind of medical test is also possible due to the usage of advanced technology.
The legal system of the country is also suitable for the medical laboratories and research. The organization needs to follow the legal system which enables them to maintain their business and their employees within the market. This is done with the help of effective healthcare law and the labor law within the country.
The country has the most effective and suitable environmental system which help to maintain the business and the waste products (Blaskovich, Butler, and Cooper, 2017). For the medical test and the specimens to keep protected the suitable environment is highly required. The basic working function of the firm Quest Diagnostic directly depends on the effective environment within the market.
Porter’s value chain analysis is the collection of the activities which is being performed by the organization for the creation of value for the customers. The value creation helps to create the added value that is helpful to lead the competitive advantages of the firm.
The organization effective distribute the raw material and the specimens to the suitable department for performing effective result regarding the test (Chae et al., 2017). There are 3000 kinds of test and for that suitable sorting as well as distribution is maintained.
The operation of Quest Diagnostic is to provide a various test on the collected specimens. For this, the operation team of the firm includes almost 650 medical doctors as well as PhDs. The organization has two kind of operation that is Diagnostics information service as well as Diagnostics solutions.
The organization is having almost 3400 vehicles as well as 26 planes to provide the most suitable and effective experience of outbound logistics to their customers. The logistics capability of the firm is to make almost 80,000 stops daily.
The diagnostic information service of the firm has the unified commercial organization that focuses on the sales of various services. The organization maintain a suitable connection with the hospitals as well as clinical franchises and also specialized physicians to attract the customers.
Quest Diagnostics provides effective service to their client which involves the lab result, along with the online availability, personal notification of the lab result with full priority, Care 360 then the QuestConnect and so on for the customers.
The organization Quest Diagnostic centralize their procurement as well as began the standardizing patient services, logistics along with the specimen processing within the laboratory (Tangenes, and Steen, 2017). The organization has the most suitable procurement excellence in the market. The organization has got their information technology from the vendor.
The organization mostly recruit the doctors, physicians, supervisor, and customer care executives and so on. The primary motive of the firm is to provide effective service to the customers and for that that follow the most suitable recruitment process where most of the doctors and physicians are experienced (Bhise et al., 2017).
The technological development of the organization effectively helps to maintain various medical test within the firm. With the help of advanced technology, the most appropriate and the accurate result of the various test can be obtained.
The organization has the most suitable and effective infrastructure system that help them to develop their business and their operation in the daily activity. The wide support of the firm gains more capabilities as well as value.
The Porter’s generic strategy is used to determine the strategy of the firm. The relative position of the firm within the industry generally determines the profitability of the organization (Allen, 2017). The generic strategy allows the firm to understand their competitive advantages with the help of cost leadership and differentiation.
The organization targets the huge market where they have the facility to provide suitable and effective medical test services to the customers that also at the lowest price (Erickson, and Rothberg, 2017). The organization provides the minimal cost to the customers with the excellent operational services. From the cost excellence program, the firm has saved almost 200 million dollars in the year 2015.
The organization with their suitable and effective strategy of the simple organization along with diagnostics information service it can be seen that their differentiation is to provide the most simple and suitable operational function to the customers with the help of advanced technology (Rizany, Hariyati, and Handayani, 2018).
The organization selected the target group to provide the most effective business operation and their strategy of restoring growth help to maintain their position within the market. It can be seen that Quest Diagnostic has effectively boost up their share in the market.
The organization provides the most valuable service to the customers with the accurate result for the medical treatment. The organizational strategy is effectively providing their best within the market to maintain their position and their suitable working function within the market.
Core competencies are a unique capability which the organization develops that cannot be imitated. This is the process which helps to provide the competitive advantages for the firm and also increase their value within the market. The core competencies of the firm help to determine the strength as well as the business growth in the market (Strom et al., 2017). The organization Quest Diagnostic have the most suitable and effective competitive advantages that allow their business to flourish within the market. It can be seen that the depth, as well as the breadth of the information when combined with the powerful analytical abilities, enable the firm to take effective advantages on the diagnostic process (Raschke et al., 2017). This is one of the basic competitive advantages of the firm for maintaining their activity within the field. They also provide the most attractive service offering within the industry that involves the comprehensive test menu, innovative test, and the customer’s feedback.
The operation of the firm also contains effective experts in medicine and science. Also, they maintain strong quality, unparalleled distribution along with the integrated technology within the business for providing the most effective and suitable operational function (Kaufman et al., 2018). This is another competitive advantages of the firm to maintain their position within the market. The organization also provide the most effective diagnostic information service to the market. The entire working function of the firm is to provide the best and the effective quality of services. It can be seen that the workers of the firm required the most suitable and effective working function to provide the best result for the medical test (McClure, Niles, Kaufman, and Gudin, 2017). The organization provides the best competitive working function within the market to maintain their activity and their business in the most suitable form within the market. They also maintain the patient insurance coverage system in their test and their payment option for the effective diagnostic centers.
The organization is having the most suitable and the effective strategy that helps them to maintain their position within the market. It can be seen that the company has effectively maintained the strategy for the growth of 1-2% per year with the help of accretive as well as strategic acquisition. The organization also have visualized the strategic and effective acquisition for their firm to maintain effective working function within the market. The organization has effectively acquired the outreach laboratory testing business that also in the Pacific Northwest of the organization Peace Health Laboratories (Ayad, and Sbeiti, 2017). The Lewisville laboratory system is also acquired by the organization that forms the basis of the first national center of excellence for the firm in the market in the area of diagnostics for oncology. Due to this acquisition, it can be seen that the organization became the most preferred provider of advanced oncology diagnosis for the patients. This acquisition consists of more than 1400 community-based doctors as well as independent doctors to provide the effective service for almost 12 hospitals of the Baylor Scott as well as White Health in North Texas. The organizatio0n is having the most suitable strategy for their acquisition to grow their business.
The organization has also acquired the Shiel Medical Laboratory business which is present in the greater New York City area. The strategy of merger and acquisition eventually help the organization to develop their market and their position most effectively and suitably that will allow their firm to maintain their position (Wang et al., 2017). The acquisition is also for the certain assets of the California Laboratory associates which is the clinical lab that serves the patient. The working function and the operational activity of the firm are quite effective, and this could be developed with the help of an effective acquisition strategy to maintain their growth in the market. The organization also acquired with the Cleveland Heartlab which is the leader for providing the innovative diagnostic service to the patient of cardiovascular disease. With the merge of this organization, Quest Diagnostic can effectively maintain their position and also their competitive advantages within the market. This is one of the best ways to provide the most suitable and effective business for the firm within the market. They also continued to provide the most innovative test for the various patient all over the country to grab their attention to the growth of the firm.
Conclusion
The paper eventually concludes the facts that the firm with the help of their strategic value and their development process can effectively maintain their competitive advantages and provide the best operational function to the customers. The entire business process of the firm is to develop the working function and the valuable strategy as well as the organizational value for the firm. The paper also concludes the fact that the acquisition of the firm helps them to maintain their business position as well as their strategic growth within the market. The fact is clear that the organization can effectively develop their business process and their working function most effectively and suitably. The entire business of the firm is to provide the best medical service to the patients and that also with the minimum cost. It can be evaluated that the organization has created the one-stop shop where the customers can get various type of test. The biggest competitor of the firm is LabCorp, but then also the firm is in the most suitable and effective business process that allows maintaining the best position within the market.
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