Smith Orthopedic Clinic (SOC), a large specialty practice, was among the best known and most respected orthopedic practices in the world. It was affiliated with one of the world’s largest hospitals and maintained a dominant market share within its service area. Its domination of the local market was exceeded by its share of the regional market because it was recognized as the premier orthopedic group in the region. During the 1970s, SOC’s traditional patient base was moving to the suburbs. As a result, the inner city, where SOC was located, soon consisted of a relatively sick population with little ability to pay for healthcare. At the same time, the practice was losing its regional market share to specialists who had become established at secondary hospitals in the region. By the 1980s, SOC was facing significant competition from other orthopedic practices in the market area. Competitors had been quick to recognize the potential of the fast-growing suburbs and created niches for themselves essentially beyond the reach of SOC. By the 1990s, SOC was lagging behind its competitors and had to rapidly establish outposts in the now-established suburban markets. SOC belatedly abandoned its inner-city office for a major suburban facility. The practice’s failure to respond in a timely manner to changes within the market resulted in a loss of its market dominance. After reviewing the preceding case, address the following points: •To what extent did forces beyond SOC’s control determine its position in the market? •What were the implications for SOC of shifting residential distribution and regional patient flow? •In what ways would monitoring developments within the service area have better prepared SOC for the changes that occurred? •Did SOC have an opportunity to recognize the trend and its implications, and take preemptive action? •What lessons can be learned from SOC’s descent from clear market leader to also-ran?

SMITH ORTHOPEDIC CLINIC (SOC)
The situation that SOC underwent was mainly due to a lack of vision and long sightedness. After realizing the movement of its traditional patient base to cities, SOC failed to take timely and appropriate actions to retain its leadership. The losing of market leadership was controlled to large extend by similar orthopedic clinics, hospitals where specialists were practicing.
As a result of decreasing business and patient visits, SOC lacked finances to appoint specialists to compete with secondary hospitals. When SOC identified its mistakes it was very late and competitors were already established in the new market. Hence, the situation was largely controlled by external forces which made the comeback of SOC difficult to its leadership position.
SOC had to go through a difficult phase due to shifting of its patient base to suburbs. The businesses started decreasing, and the clinic were visited by poor patients who were unable to pay to the clinic. This led the clinic to losses. At the same time, SOC faced competition from other orthopedic clinics.
The major reasons that led to the present situation of SOC is mainly the lack of knowledge. SOC didn’t have any back-up plans to face any difficult situations. Also, it lacked the knowledge about competitors which are other orthopedic clinics and secondary hospitals. These hospitals could afford to appoint specialists which was a great blow to SOC. These losses would have been avoided if SOC had a good market knowledge, strategies, knowledge of competitors and timely action.
If SOC would have monitored the developments in the area in Orthopedics, it would have prepared better to beat the competitors. Also, SOC should have resorted to certain back-up plans to survive in the market.
Definitely SOC had the opportunity to recognize the trend. It is given that the situations started changing in 1970s when the traditional patient base has shifted to suburbs and lost market share to other orthopedic competitors.
In 1980s the competitors identified the niche market in the growing suburbs and established themselves in the market.
1990s SOC was very much lagging behind the competitors and slowly shifted to sub-urbans where the competitors have established their base.
This trend shows that since 1970s the leadership base of SOC started shaking which continued till 1980s. But SOC was slow in taking actions since 1990s, which was way too late to beat the competitors and establish in the new market in suburban regions.
Lessons from the case
1. Delay in taking timely actions
2. Lack of vision and foresightedness about the future
3. Lack of back-up plans to tackle adverse situations.
4. Poor knowledge about market and competitors
5. Poor knowledge of marketing strategies to beat the competitors
 
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