Wednesday, February 23, 2011

SECA 1A- Is your organization's strategy focused primarily on cost leadership or product differentiation?

I feel that Kaiser organization strategy is primarly focused on product differation which helps them drive cost leadership. For example, by focusing mainly on preventive care plans, Kaiser is able to use product differation to save cost. By implementing programs which treat the early stages of diabetes, obesity and high blood pressure, Kaiser is able to save on the more expensive cost such as hospitalizations,medications, and medical staff. By being able to save on such things as hospitalizations and medications, membership fees are decreased giving Kaiser a cost leadership in the market.

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