Case study: Shouldice Hospital Limited

While reading this case study, one problem can obviously been observed- paradox of change. Shouldice is operating at its “best operating level”(as we can see from the case), a specialized work force but it is failing to meet all the demand for its chosen market niche. Adding additional capacity to meet market need may upset the existing work force and lower quality of operations.

Failing to meet market requirements may cause competition that would lead hospital to loss market share.

I make a SWOT analysis for better understanding of the case:

-Strengths:

1)Unique surgical techniques.

2)Up-to-date equipment.

3)Educated and experienced stuff.

4)Excellent service and nursery.

5)Huge demand for operations.

-Weaknesses:

1) Limited number of beds.

2)Their techniques aren’t patented.

3)Insignificant shortcomings (lack of TV & phones, etc)

-Opportunities:

1)Related diversification of surgery operation services.

2)Open days can be Saturday or even Sunday.

3)Introducing of new location (inside Canada and in another countries).

4)Increasing of a number of patients.

-Threats:

1) Competitors

-Alternative strategies:

1)To stay at a present level and continue to do as they are currently doing.

2)To add additional day by operating on Sundays.

3)To increase number of beds.

4)To meet unmet market demand with external capacity.

-Evaluation of alternatives:

1)Their reputation and existing system set them as market leader, so they can do nothing to improve this fact.

2)Adding Saturday as operating day is also reasonable, because they easily can increase number of patients (but this can slightly decrease the quality of service-so they need to hire additional stuff).

3)Increasing number of beds is not a good idea, because in this case they also will need to add more doctors and surgery rooms.

4)They can look on another facilities, there their doctors can implement theirs skills.

-Recommendations: I recommend them a combination of staying at present level with existing stuff and hospital, and to meet unmet market demand with external sources of capacity to stop competitors from entering the market.

-Some additional measures to be considered: to prevent possibility of stealing techniques I suggest them to patent all theirs unique methodics, so other hospitals and doctors can’t use them without permission, also patented methods will inspire and persuade patients to use Shouldice services