Today in the anesthesia space, companies are engaged in a head-to-head competition for sustainable and profitable growth – fighting for the competitive advantage, battling over market share, and struggling for differentiation. This crowded sector’s head-on competition is nothing more than a bloody “red ocean” of rivals fighting over a limited profit pool.
The Blue Ocean Strategy challenges everything we thought we knew about the requirements for strategic success.
W. Chan Kim and Renée Mauborgne contend that while most companies compete within red oceans, this strategy is increasingly unlikely to create profitable growth in the future. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, Kim and Mauborgne argue that tomorrow’s leading companies will succeed not by battling competitors, but by creating “blue oceans” of uncontested market space ripe for growth. This will service as part of PhyMed’s strategy playbook. Why? Because Blue Ocean Strategy provides the systematic approach to making the competition irrelevant.
PhyMed Healthcare Group has set in motion strategic moves we call “value innovation” to create powerful leaps over both our partners and toward our customers through a laser focus on quality, clinical excellence, and efficient delivery of services. Implementation of innovation renders rivals obsolete by unleashing new demand, and presenting a proven analytical framework and tools for successfully creation and capture of blue oceans. The strategy highlights six principles (to follow in subsequent newsletters) that every organization needs to utilize to successfully formulate and execute blue ocean strategies – to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy. It forces the upending of traditional thinking about strategy and charts a bold new path to winning the future.
The implementation of the “value creation” strategy allows us to compete neither on size nor price, but rather on quality, demonstrated value creation, clinical excellence, and innovative approaches. Our 2014 growth of same store, de novo, and merger and acquisitions remain robust with another two to three expected by year-end to add to the recent new startups at the North Tower, Franklin ASC, TriStar’s Horizon and Greenview Medical Centers. Our most recent acquisition partnership with ASMT and PMMT affords PhyMed and its affiliate the ability to continue to redefine its market space, for a larger strategic footprint, and entry into another major national healthcare system.
The Blue Ocean Strategy is complimentary to our Vision: Trusted Partners in Healthcare Excellence through Innovation. But our vision and strategies will not be successful without the cultural alignment and strategy adoption by each member of the team, as we navigate this voyage of opportunity. This approach requires us to be an active crew, committed rowers with all hands on deck. PhyMed needs everyone on board!