CASE ANALYSIS: SCHON KLINIK EATING DISORDER Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

CASE ANALYSIS: SCHON KLINIK EATING DISORDER Case Solution

Present Challenges

Schon Klinik is facing a major challenge as the hospital is working well in eating disorder segment however,there are many other segments where the hospital is working, but they are not making a significant portion of revenue. Furthermore, the other diseases and their care processes are working well however, they are not contributing a significant chunk of income as well as profit.

The management is looking to integrate all the hospitals that fall in the group of Schon Klinik to focus on eating disorders as well as other diseases. However, the competitors are making a significant chunk of their revenues from other diseases and their care, but they are not competent enough to compete with Schon Klinik in eating disorders segment.

Its recommended for Schon Klinik to focus on other parts to enhance its brand image, margins, and earnings. Furthermore, the company can also increase its volume by acquiring more hospitals and clinics to expand its business horizontally. The company can also merge some or all of its business units with some large players in the industry to expand its geographic coverage. In addition, it can also enter into global markets by enhancing its business outside Germany. (Porter M., 2015)

Porter’s Five Forces and its Impact on the Healthcare Industry

Barriers to Entry

The industry is full with many players who are making significant revenues and margins but the majority of them are non-profit and public organizations, however, there are some private hospitals suchSchon Klinik, but they are the major industry players. In these circumstances, new entrants will not be motivated to enter the industry because of its dynamics as it has been discussed earlier that the majority of hospitals are non-profit organizations and those, which are private, have a lot of expertise. Moreover, in order to develop a solid profit-making organization like Schon, it will require years of experience in the industry as well as a lot of capital.

Power of Buyer

The power of consumers for the industry is moderate as the majority of the public and non-profit hospitals give treatment through government funding, and most of healthcare policyholders fulfill their needs of medical assistance from these public and public hospitals as well. Furthermore, there is a medium sized segment, which uses private hospitals like Schon, and this portion can easily afford their medical expenses. In addition, it is an excellent opportunity for Schon Klinik to dominate the industry since it has a high and well-known pool of physicians and hospitals, which adds value to its brand image and patient care.

Power of Supplier

The primary and major channel of supplier for Schon Klinik is its massive network of hospitals, which runs their business under the domain of Schon Klinik. In addition, these hospitals add to Schon’s geographic and regional coverage. Furthermore, the industry is not facing a high power of supplier,as the main providers of this industry are the federal and local government. However, the government has fixed a proportion of its funds for different domains of hospitals and clinics. Moreover, the government allows a fixed reimbursement structure for all public and public hospitals regardless of how many patients they have. In this sort of situation, the private hospitals can also perform well and can increase their growth and margins......................

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