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Target Market And Healthcare Business Plan

Quest Diagnostics Competitive Strategy Quest Diagnostics is a company that has a lot of potential in Turkey based on its experience in other countries. The company mainly focuses on patients and physician services with the aim of making health care more effective. Turkey as a country has a challenge of having fewer doctors or medical practitioners than in other countries. However, the country has a growing GDP, with a considerable amount being spent on healthcare. Quest Diagnostics stands a chance to benefit from increased spending as the GDP improves. Consequently, the number of older adults in the country is increasing and more diagnostic procedures will be required to deal with issues associated with lifestyle diseases. The analysis focuses on the competitive advantage that Quest Diagnostics has in Turkey.

Competitive Strategy and Target Market

The competitive strategies that Quest Diagnostics should use are the cost leadership and focus. The company should focus on the older adults and the hospitals in the country to reach as many physicians as possible. Research shows that the number of doctors in Turkey is increasing thanks to the increase in government spending on health matter (Aslan, 2013). Similarly, the number of older adults in the country has also been rising in the recent past. More than five million people in Turkey are above 65 years old. At this age, the most vulnerable diseases are lifestyle in nature like cancer, diabetes, and arthritis. The implication is that more tests will be required to satisfy the needs of the population in the country (Deloitte, 2014). The fastest rising population is the old age one made up of people who are 85 years and above. This is projected to continue rising in future: a gap in diagnostics will be created as the country deal with the shortage.

Evidently,...

In this case, the company should become a leader in cost reduction to meet the needs of the aging community. Cutting the cost of diagnostics will help the abandoned part of the population with a chance to deal with some of the illnesses that require diagnostics procedures for them to manage the illnesses (Deloitte, 2014). Consequently, a cost leadership approach also enables the company to fight off competition from companies such Synevo and LabCorp. These companies provide the same services and the only way to fight off their competition is by offering a better price to the consumers than them.
Target market

The number of hospitals and physicians in Turkey has been on the rise in the recent past due to the reforms that have taken place in the sector in the last decade. The number of private hospital beds has increased by 26.6% with the number of hospital visits in the private sector has increased by 63.5%. The medical device market in Turkey is also expected to increase by 8.5% by the end of 2018 (Jordan-Tank, 2017). The country is also planning to spend more than 47 billion dollars in building new hospitals meant to ease the burden placed on the current hospitals. The number of doctors is expected to increase leading to an increase in demand for diagnostic equipment (Deloitte, 2014). The estimation process is based on trends in purchases of the healthcare products and in particular the testing ones. Testing equipment associated with diabetes and cancer has seen a tremendous increase, which is expected to continue as the country continues to invest in the healthcare. Increased spending will mean increased buying of testing equipment.

Market Segmentation

The company…

Sources used in this document:
References

Aslan, D. (2013). Aged population is increasing in Turkey: a situation analysis. Acta Med, 2(23), e5.

Deloitte. (January 2014). Healthcare Industry in Turkey. Retrieved from http://www.invest.gov.tr/en-US/infocenter/publications/Documents/HEALTHCARE.INDUSTRY.pdf.

Jordan-Tank, M. Kanchi, V. (2017 April 19). Success factors in Turkey's Elazig healthcare PPP. The World Bank. Infrastructure & Public-Private Partnerships Blog. Retrieved from http://blogs.worldbank.org/ppps/success-factors-turkey-s-elazi-healthcare-ppp.
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