Strategic directions and views

Abstract

Two main strategic views are traditionally used in various industries including healthcare, these include the positional view and the resource based view. In the positional view, strategic planning primarily lies in envisioning the position of the medical institution in the healthcare arena. The main competitive advantage lies in its current position in the market which mandates proper understanding of the various industry’s attributes as well as the competitive forces that shape the position of the institution and its long term profitability. The main industry attributes analyzed in health care are the rate of growth and profitability, geographic accessibility, strategic alliances, in addition to the weight and impact of technological innovation on its performance. Equally important strategic view is the Resource based view where strategists look within the institution at its resources and capabilities in attempt to develop new competencies that are of strategic relevance. The main question to be answered is “what are we good at” and how can we leverage on our competencies to expand our market share and grow further. This view is more commonly adopted in unstable environments characterized by turmoil which makes industry attractiveness an elusive strategic start.