The business had both width and depth of experience in providing logistics, project management and information technology (IT) services to customers in the public and private sector. Although the employees of Target Systems were specialists in a full range of IT services, no one in the company had deep expertise about the means that administer health care organizations or the IT programs were being used to manage patient care. The shortage of expertise entailed that a movement by Target Systems into the EHI systems stadium would call for the business to simultaneously develop new products and services for a fresh set of customers -- to engage in growth by connected diversification.
That strategy would stand in sharp contrast to the growth by concentration strategy company history had been applied throughout by the team. In order to develop a diversified strategy the team must determine if it should supply services to regional health information organizations, hospitals or individual doctors' practices. It would also have to choose whether it would cultivate new capabilities by seeking a strategic partner which was already operating in the stadium or by investing in internal development.
PUBLICATION DATE: October 29, 2012 PRODUCT #: W12290-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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