Page 11 - CIMA MCS Workbook February 2019 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

EXERCISE 1 (continued)

CROWNCARE must ensure that it matches its strengths to any opportunities identified when
considering future strategic development options. Failure to do so will leave CROWNCARE
exposed to unnecessary risk by attempting to achieve strategic options without the resources or
competences to fulfil those options.

In addition, failure to address and remove weaknesses may leave the organisation exposed to
future threats. This is particularly relevant for CROWNCARE given the increasing social and health
concerns and the resultant increase in complexity associated with dentistry. As with any business,
ultimately customer demand governs success and enhances the service provider’s brand. Despite
being the largest provider of dental care in its catchment area, brand is a key factor in dictating
the future success of CROWNCARE.

Customers have considerable choice as to which dental practice they choose and although the
local market is dominated by CROWNCARE, the business will still need a detailed and continuous
flow of information on customer demand, social trends, technological developments,
environmental issues and spending patterns etc. to ensure that the right service is available at the
right time and in the most cost effective format.

Alternatives available to CROWNCARE are:

 Market penetration. CROWNCARE could opt to maintain or increase its share of existing
markets with existing products but in a changing environment, with the industry having to
meet increasingly innovative clinical processes, technology and social change, this is
unlikely to succeed. The industry is used to being dependent on service development in the
aspects of new trends such as cosmetic dentistry, teeth alignment technology, 3D mouth
scanning etc. CROWNCARE will need to maintain an innovative approach to survive e.g. by
responding to environmental, regulatory and socio‐demographic trends and enhancing
their services and products as appropriate.
 Product development. CROWNCARE could develop strategies based on launching new
products or by enhancements to existing products to its existing markets e.g. continuing to
innovate with laser powered drills, teeth whitening technology etc. The market has become
dependent on a range of factors: price is no longer the only criteria for new service/product
launches: brands need to meet consumer demand for health, wellbeing and the effect
dental technology can have on patient emotions e.g. emotional dentistry or smile design
technology.
 Market development. CROWNCARE could develop new markets for existing products e.g.
expanding into other towns or cities close to Varentia or even further afield into
neighbouring countries.
 Diversification. CROWNCARE could launch new products into new markets e.g. botox or
profractional therapy for facial skin improvements. If CROWNCARE has a range of
insufficiently profitable products it might find it makes the most strategic sense to establish
a new range maybe via a joint venture with another company or create an alliance to
facilitate.

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