Major issues
Here are the major issues I came out with. Anabel
Pacific Cataract and Laser Institute have several major issues that need to be addressed for their survival as a business. The major issues that they need to address are high prices, limited number of doctors that can perform lasik surgeries, inability to partner up with local doctors, high transportation cost, and high salaries. The most pressing problem they face is the fact that they cannot compete with the prices their competitors are currently offering. They cannot compete with such low prices because they pay their doctors higher salaries and they have to pay royalties for the use of lasik equipment every time a surgery takes place. The fact that they do not have enough doctors to cover a rather extensive area, forces them to have a very high transportation cost since they have to fly their doctors around eleven different locations. Pacific Cataract and Lasik Institution has to focus in a new strategic management, capacity utilization, cost control and marketing approach.
The pricing of the surgeries is a major issue that Pacific Cataract and Laser Institute competition has to deal with and it is not an easy situation because their competition is fierce and they are able to offer surgeries for one quarter of the price that PCLI. It is impossible for Pacific Cataract and Laser Institute to cut their prices as low as the competition because they have high expenses, but maybe with some restructuring on their expenses they can lower their prices a little bit. A lower price combined with a better marketing strategy can differentiate their surgeries from the competition by emphasizing in the safety issue and the pre-surgery and post-surgery care that they can offer their patients from qualified doctors that are well compensated for their services.
Another major issue that Pacific Cataract and Lacer Institution have to address is the number of doctors in their staff that can perform the Lasik surgeries. Out of seven surgeons that they have only three can perform the Lasik surgery. PCLI needs to restructure this part of their business because they can expand if they have more doctors they need to consider leaving a surgeon and its team in a specific area instead of flying them all over the place. These trips have to inconvenient the surgeons and their people because they do not have a comfort zone and the closeness of their own families. These doctors would probably agree to a lower salary if they have a more stable business environment. They would probably be more in touch with the people in the communities they are serving if they live close by and they are part of these communities. PCLI needs to increase the number of doctors that can perform the surgeries and also trained the other four doctors that they already have to do the Lasik surgeries too. If they have more doctors capable of performing more surgeries they can also look into expanding to other areas or just giving better service to the areas that they are already covering.
Pacific Cataract and laser Institute also needs to evaluate their transportation cost because they fly their doctors in private jets to go from one city to the other and this is a high expense that they could avoid by just hiring competitive doctors and assigning areas for them to work from just one location as suppose to spreading thin everywhere. PCLI owns two jets, but imagine how much money they will save in transportation in private jets because they do not only have to hire the pilots, and the gas. They can even sell the jet planes and have tons of money to grow more as a business. The transportation cost for flying a doctor back and forth is very high. PCLI can easily save this money by hiring more surgeons and they could save this money and use it for other issues like hiring more doctors or giving them more training.
Pacific Cataract and Laser Institute have several major issues that need to be addressed for their survival as a business. The major issues that they need to address are high prices, limited number of doctors that can perform lasik surgeries, inability to partner up with local doctors, high transportation cost, and high salaries. The most pressing problem they face is the fact that they cannot compete with the prices their competitors are currently offering. They cannot compete with such low prices because they pay their doctors higher salaries and they have to pay royalties for the use of lasik equipment every time a surgery takes place. The fact that they do not have enough doctors to cover a rather extensive area, forces them to have a very high transportation cost since they have to fly their doctors around eleven different locations. Pacific Cataract and Lasik Institution has to focus in a new strategic management, capacity utilization, cost control and marketing approach.
The pricing of the surgeries is a major issue that Pacific Cataract and Laser Institute competition has to deal with and it is not an easy situation because their competition is fierce and they are able to offer surgeries for one quarter of the price that PCLI. It is impossible for Pacific Cataract and Laser Institute to cut their prices as low as the competition because they have high expenses, but maybe with some restructuring on their expenses they can lower their prices a little bit. A lower price combined with a better marketing strategy can differentiate their surgeries from the competition by emphasizing in the safety issue and the pre-surgery and post-surgery care that they can offer their patients from qualified doctors that are well compensated for their services.
Another major issue that Pacific Cataract and Lacer Institution have to address is the number of doctors in their staff that can perform the Lasik surgeries. Out of seven surgeons that they have only three can perform the Lasik surgery. PCLI needs to restructure this part of their business because they can expand if they have more doctors they need to consider leaving a surgeon and its team in a specific area instead of flying them all over the place. These trips have to inconvenient the surgeons and their people because they do not have a comfort zone and the closeness of their own families. These doctors would probably agree to a lower salary if they have a more stable business environment. They would probably be more in touch with the people in the communities they are serving if they live close by and they are part of these communities. PCLI needs to increase the number of doctors that can perform the surgeries and also trained the other four doctors that they already have to do the Lasik surgeries too. If they have more doctors capable of performing more surgeries they can also look into expanding to other areas or just giving better service to the areas that they are already covering.
Pacific Cataract and laser Institute also needs to evaluate their transportation cost because they fly their doctors in private jets to go from one city to the other and this is a high expense that they could avoid by just hiring competitive doctors and assigning areas for them to work from just one location as suppose to spreading thin everywhere. PCLI owns two jets, but imagine how much money they will save in transportation in private jets because they do not only have to hire the pilots, and the gas. They can even sell the jet planes and have tons of money to grow more as a business. The transportation cost for flying a doctor back and forth is very high. PCLI can easily save this money by hiring more surgeons and they could save this money and use it for other issues like hiring more doctors or giving them more training.
posted by Lasik Eye at 11:26 PM
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