Market Definition
The Community Health Program (CHP) of the American Heart Association and hypertension (AHA) is designed to enter Phoenix, AZ, healthcare market. The market consists of six segments: health care providers, health care insurers, ancillary providers, educational institutions, research institutions, and non-government organizations (NGOs). As AHA is an NGO, the CHP is entering the NGO market segment that is characterized to have the least amount of economic impact (University of Phoenix, 2019). Even though NGOs are employers, they do not offer as many jobs as other market segments. At the same time, despite the low direct financial impact, NGOs “play a catalytic role in growing the Phoenix metro region health care economy” (University of Phoenix, 2019, p.11). Additionally, AHA health promotions are vital for improving patient outcomes. Therefore, the health program offered in the presented business plan is expected to have a considerable impact on the community.
Industry Growth Trends
The healthcare industry in Arizona and worldwide is on the rise as the number of job offers grows rapidly. According to the University of Phoenix (2019), every eighth vacancy in the US is going to be in health care by 2022, adding about 2.3 million new jobs. The Greater Phoenix region health care provider sector contributes $8 billion to the local economy (University of Phoenix, 2019). The first reason for the expected growth is the proliferation of technology that grants care providers and NGOs opportunities to reach desired populations through telehealth services. The second factor is the increase of the aging population as Baby Boomers are reaching their 60s in the nearest future. The matter is especially relevant for the proposed CHP, as people over 65 are at a greater risk of heart diseases (“Heart disease,” 2019). The third cause of the expected growth is the emergence of new healthcare business models, such as clinics located in supermarkets. The CHP described in the present business plan can be considered one of the innovations in the sector. In brief, the three major factors described above predetermine the trend of market growth.
Customers
The customers of the proposed CHP are the people living in Arizona with an increased risk of heart diseases. According to the World Population Review, the population of Phoenix is 1,626,078, making it the 6th populous city in the US (“Phoenix population,” 2019). People with an increased risk of heart diseases are citizens older than 65 or with annual income below $25,000 (“Heart disease,” 2019). As the number of senior citizens is 157,110 and about 21% of the population has low incomes, the potential customer count is approximately 465,500 (“Phoenix population,” 2019). The mobile unit will be especially effective for addressing the target population, as older Americans have decreased mobility and people living below the poverty line have less access to health care and related education. In short, the number of potential customers is relatively large and is projected to increase as the population grows older.
Competitors
The competitors in the segment are scarce, and the information about their market share is not clear. As defined by the University of Phoenix (2019), the key competitors are Arizona Public Health Association (AZPHA) and Arizona Health Care Association (AHCA), as they are the largest NGOs in the community. AZPHA is a membership organization that aims at improving people’s well-being through advocacy, professional development, and networking (AZPHA, n.d.). AHCA (n.d.) is an association of long-term care facilities that provides support to its members. These two organizations do not offer health promotion services and, therefore, represent weak competition to the proposed CHP. At the same time, Mayo Clinic, one of the largest health providers in Arizona, offers health promotion services and patient education as stated on their official webpage (“Mayo Clinic,” n.d.). However, the organization values any help in achieving a common goal. I summary, the proposed CHP is projected to meet mild competition.
Critical Success Factors
The major success factors identified for the present CHP are as follows:
- Providing quality patient-centered care. Without this element, the project will be considered a failure, as all the stakeholders value the matter as crucial.
- We are improving patient outcomes. The primary goal of the CHP is to prevent heart diseases, and without the proper results, the project will be considered unsuccessful.
- It is finding adequate funding. As the project is not for profit, it will be impossible to continue the operations without outside financial help.
- We are building a strong relationship with the community. Without their support from the proposal will fail to reach the target population.
Strategic Opportunities
The strategic opportunities for further business growth lie in better market penetration. As the services and the market of the CHP are strictly identified, and there are no opportunities to expand to other markets or add new products, the opportunities are stated as follows:
- They are ensuring financial sustainability. All the other endeavors will fail if there is no adequate financial support.
- We are providing reliable services. In terms of customer objectives, it is the best strategy to increase customer satisfaction.
- We are improving our technical and analytical skills. Without this knowledge, the project will not be able to develop.
- I am increasing team productivity. This aspect will allow the mobile unit to provide service to an extended number of communities improving market penetration.
References
Arizona Health Care Association. (n.d.). Who we are. Web.
Arizona Public Health Association. (n.d.). What we do. Web.
Heart disease in Arizona in 2018. (2019). Web.
Mayo Clinic. (n.d.). Web.
Phoenix population. (2019). Web.
University of Phoenix. (2019). Phoenix forward: Health care industry overview. Web.