Strategic Management Finals First part with its own Reference page Answer three questions from below. Your total submission should not exceed three pages. Please note you should use 1.5 spacing, 12-p

HSA 403 - Market Segmentation and the Value Chain

Englewood Hospital (NJ) introduced a surgical program, Bloodless Surgery to recruit and retain members of the Jehovah’s Witness Community.  This Christian faith prohibits blood transfusion from other individual’s donated blood.  The US Supreme Court ruled in their favor – they cannot be compelled to receive a such blood transfusion.  They will however agree to receive their own blood.  This is a unique market segment (its small, therefore a market niche).

There is a sizable Jehovah’s Witness community near and around Englewood, NJ.  Englewood Hospital saw an opportunity to recruit and retain these individuals, since they will accept their own blood in a transfusion.  This can be blood set aside before any surgery. It can be recycled; an individual’s blood is captured, sanitized, and reissued during surgery.  Englewood Hospital created The Institute for Patient Blood Management and Bloodless Medicine and Surgery to serve this market segment.

The Value Chain could be applied in the Service Delivery.  Were the systems offered by The Institute, safe, clinical sound, and something that individuals want?  For Orthopedic Surgery (joint replacements, the answer was yes!  Therefore Pre- Service, Point-Of-Services and After Service functions are reviewed to assure that they will create value for these patients.

The Support Activities could be reviewed too.  My hypothesis is that the Organization’s Culture had to be modified to create value for this segment of the market.  The core religious belief is not necessarily aligned with medicine or hospitals in general.  This group of potential patients was shaping hospital clinical practice.  I suspect this may have been the hardest part of the journey.

This program is successful.  It is an example of the importance of segmentation.  It demonstrates the need to assure that Service Delivery and Support address the unique needs of distinct groups of patients.  Remember, it’s hard to recruit and retain customers.  They are easily lost.