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Cleveland Clinic Transformation And Growth 2015 Case Solution

Solution Id Length Case Author Case Publisher
1768 1129 Words (6 Pages) Michael E. Porter, Elizabeth Olmsted Teisberg Harvard Business School : 709473
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Cleveland Clinic was formed in 1921 and had established itself as a multi-specialty health care system with its origin in Cleveland, Ohio. It focused on establishing itself geographically by expanding into ten states within Ohio, along with Toronto, Canada and Abu Dhabi. Due to the clinic, continuously increasing its specialities offered, it got multiple offers of collaboration from different countries including London, which is accepted but was unsure about which services to offer that would be aligned with the London health care industry. Moreover, Cleveland also had opportunities to expand in India and China because of the large market there. But, it was unsure, if it would be able to adapt itself and whether it would be the right decision.

Following questions are answered in this case study solution

  1. Background and Problem Identification

  2. Analysis

  3. Analysis of Feasible Solution 

  4. Recommendation and Implementation Plan

Case Analysis for Cleveland Clinic Transformation And Growth 2015 Case Solution

2. Analysis

i. PESTEL Analysis

Political

Economic

Social

Technological

Environmental

Legal

  1. Better relations with the United States of China against India.

  2. Developed as a super power in the international markets. (China has been stronger than India)

 
 

  1. Higher level of economic growth in China

  2. Improved standard of living (Both)

  3. Moving towards a developed economy (Both)

  4. A very large population which means increased demand (Both)

  5. China is a capitalist economy which might hinder the way of doing business

  1. Cultural diversity which would mean health care physicians from different speciality background (Greater cultural diversity in China)

  2. Changing mind-sets of people towards improving health care

  3. Due to the greater number of the working class, a greater number of people suffering from day to day health problems causing increased demand for health care

  4. Obesity has become common

  5. People have become health-conscious

  6. High literacy rates

  1. China has become more tech-reliant due to increasing technological development in every industry

  2. Growth of e-commerce and Teladoc clinics

  3. E-kiosks trend becoming popular for the treatment of patients in which Cleveland Clinic specializes

 

  1. Sustainability has become an important concept by means of discouraging smoking

  2. Infrastructure needs to be favourable to ensure flexible supply chain for the transportation of medicines

  3. Growth in customer activism as customers have become environmentally aware

  1. Greater compliance requirements in the health care sector due to its sensitivity

  2. Higher extent of interference by the government in China relative to India

ii. Porter’s 5 Forces
Bargaining Power of Suppliers

Cleveland's suppliers are mainly the physicians and the shops that provide it with the medical equipment. By setting up its education facilities through collaboration with Ohio University, it regulated its supply of doctors. Similarly, the equipment suppliers are also forced to reduce prices because the company has established itself as a big name.

Bargaining Power of Buyers

The industry is run by low buyer power as the main focus is on the customers only, which is why it has developed a good reputation for itself. Its advanced health care units ensure to provide customers with good service and result in their better health outcomes.

Threat of New Entrants

Barriers to entry are high because of high capital requirements and increased regulations and compliance requirements (Klapper, Laeven, & Rajan, 2006). This is because of the sensitivity of the industry.

Threat of Substitutes

These include the University Hospitals which are located in different areas in North Ohio region. They have a very high patient turnover ratio and a large number of visiting physicians on board. Overall, the threat is still low as the Cleveland clinic has started expanding itself rapidly and provides premium quality service in contrast to its substitutes.

Competition

There is limited competition due to high barriers to entry. Also, there are a limited number of players providing exceptional health care system to its customers through state of art technology.

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