Case 1: Shouldice Hospital Limited
Q1: How does shouldice compete? In other words why do patients come to shouldice hospital?
Two main reasons drive customers into choosing Shouldice over other competitors/hospitals. The first is quality, and the other is cost. talking about quality of the Shouldice “product” includes both, quality of the operation, and quality of post operation activities and overall services offered by Shouldice.
The Shouldice method is a focused, specified operation that deals with Hernias, with a reputation that has been built throughout the years and is still growing; the hospital doesn’t even use advertisement to attract patients, the “word of mouth” way of ...view middle of the document...
9 days are sufficient for a patient at Shouldice to go through the operation and the post operation recovery, while it takes about 15 days in other hospitals. Moreover, the dollar amount saved between going to shouldice and going to another hospital is about 1000. And has Dr.Shouldice says, even if a patient buys a round ticket from the US to Toronto, the cost of the operation stays lower.
Overall, a patient choosing Shouldice would be going for a cheaper, higher quality service of operations, both of which are the optimum that a patient can choose, and therefore cause him to pick Shouldice over other hospitals.
Finally, as a conclusion, if we want to look at it from a Value creation perspective, their advantages can be separated into the 4 parts:
1- Cost: the cost advantages listed above
2- Quality: separated into 2 parts:
a. Quality of design: made available by the services offered to the patients (welcoming his family, a high quality lunch)
b. Quality of performance: made available by the specialization of the doctors in using the Shouldice method (seargons have an average of 600 operations/year and the rate of recurrence equal to 0.8%.)
3- Delivery: the established process enables the Hospital to offer a high admission process along with a high speed recovery (as mentioned earlier).
4- Flexibility: the fact that the secretaries are trained for multitasking
Q2: Identify characteristics of Shouldice’s operations that you think have contributed to its success.
The elements that contribute to Shouldice’s success can be branched into administrative, structural, and operational factors. The policy that the administration of Shouldice applies stresses on the core competence of Shouldice’s operations which is taking good care of the patient during post operational recovery and insists on personal contribution of the patient during this phase. The management at shouldice does its best to keep the patient as comfortable as possible by applying the main concepts that shouldice is built upon.
Moreover, the structure of shouldice acts as a major factor in its success. Starting from the building and room equipment that lack TVs and phones, encouraging patients to get up and walk in order to mix with people and profit from the social experience offered by this program and expedite their post operation recovery. In addition to that, carpets all over the place, comfortable stairways, and easy movement between operation rooms for doctors to help each other, all act as important roles that the structure and design of shouldice depends on to contribute to its success. Not to ignore the fact that shouldice’s location is very important since it is based near the airport of a huge city with a large population and encourages international patients coming from outside the country to operate there.
Moving to the operational factors that contribute the most to the success, we can find that shouldice is focusing on a narrow...