Introduction
DaVita Inc. remains as one of the largest dialysis health providers and models of healthcare in the Healthcare Industry. DaVita Inc. encounters numerous competitors, not only in the United States but globally. In order for DaVita Inc. to actively remain ahead of its competitors within the Healthcare Industry, it is highly required for DaVita Inc. to deliver value to consumers with transparent price and high-quality customer care. In this report, it will present an internal environment analysis -an internal analysis that examines the internal environment of the organization especially DaVita Inc. in order to assess resources and competitive advantage- about corporate, business, and financial level strategies for DaVita Inc. Additionally, the report will provide a SWOT table illustrating the strengths and weaknesses that DaVita Inc. faces, IFE Matrix analysis, the Grand Strategy Matrix, a strategic Financial Analysis for the Last Reported Fiscal Year, and a QSPM Matrix.
Strategic Role of Corporate Strengths/Weaknesses in the Internal Strategy Analysis
Corporate-Level Strategies
DaVita Inc. is well-known as a leading health provider of dialysis services in the United States for patients suffering from kidney diseases, or End Stage Renal Disease (ESRD for short), and providing acute inpatient dialysis services in approximately 700 hospitals and laboratory services (CSIMarket, Business Description, 2021). DaVita Inc. follows both of its vision and mission, striving to be a community first, company second for more than 10 years. One of the strategies used in this operation is continuing to expand its operations to improve access to healthcare to nine countries outside of the United States. DaVita Inc. was able to reach out to a mass audience in different demographics to increase business. In the operation, DaVita Inc. has the ability to choose the most concentrated strategies that can help the company advance in the Healthcare Industry.
DaVita Inc. is the global model in kidney care and dialysis services, a healthcare company noted for its quality and expertise in positive outcomes for patients who are diagnosed with renal diseases, diabetes, or various types of kidney diseases. Not only that DaVita Inc. became a company known for its quality services, but also became a healthcare marketing agency in order to increase digital growth efforts. To increase engagement, DaVita Inc. can establish Facebook presence and use that presence to act as the source of trusted healthcare tips. The usage of social media thrives in the modern era and acts as a tool to deepen a relationship with customers and develop a customer base. Creating social media accounts especially Facebook is quick and affordable, but this strategy is essential to advertise products. The problem however was that competitors can also set up their own personal pages that can tailor internet users to certain interests and demographics. Social media is available worldwide which explains the difficulty of attracting customers of a certain group, gender, and age. Social media especially Facebook enables the company to repurpose existing global collateral, drive brand awareness, support awareness as it builds nephrologist networks, and advertise to generate leads. Though DaVita Inc. has run a few campaigns, it is rather difficult to understand how to effectively target a niche audience. The target was an aging audience, which is a high chance that there might not even be on the platform. With social media such as Facebook, LinkedIn, Twitter, etc., it helped DaVita Inc. develop a consistent brand voice, and establish trust by leveraging global healthcare knowledge and experiences from decades.
The second strategy that enables DaVita Inc. to achieve its objective is minimizing costs. DaVita Inc. continues to advance new models for services and developing proprietary technology, and aiming to improve the patients quality of life, services, and reduce cost. In DaVita Inc., what is crucial to the success of DaVita’s operation is hiring highly motivated and empowered employees or teammates. With the services provided by empowered employees, they act as the face of the company from the patients perspective. Accordingly, it has developed an ethos when DaVita Inc. is a shelter, or simply describing the environment as safe, a place where employees can care for each other while providing the best of services to their patients. The company hosts regional and national meetings where employees can bond and educate each other about the best medical practices to increase the patients quality of life. With these abilities combined, DaVita Inc. ‘s culture and employee-focused programs serve and develop the best performance and experience, driving patient loyalty. Going back to reducing costs, DaVita Inc. examines the process of the dialysis treatment, searching for opportunities, and improvement continually. Through the combination of clinical coordination, claims and analysis, the company is assuring to assist customers and patients to obtain the best of services and improved clinical outcomes, as well as helping to reduce medical costs (CSIMarket, Business Description, 2021). DaVita Inc.’s revenues are based upon the established contract fee and are recognized as earned-over contract period, and may increase additional fees for cost savings (CSIMarket, Business Description, 2021). With intelligent and energetic employees trained to deliver value to patients, and the reputation for reducing costs required for quality care, DaVita Inc. is well-poised to embrace the future.
Looking at the provided SWOT analysis, it evidently gives DaVita Inc. an idea of where to start in order for the company to successfully long-term. The internal analysis was only meant to observe the strengths and weaknesses of DaVita Inc. One of the biggest strengths of DaVita nc. is their brand reputation since they are globally known as the Fortune 500 healthcare provider focused on delivering value for patients in the Healthcare Industry. With locations sitting at more than 10 countries outside of the United States: Brazil, China, Colombia, Germany, Malaysia, Poland, Portugal, Saudi Arabia, Singapore, and the United Kingdom (DaVita Inc., International, 2021). DaVita Inc. has made their name global and brings various strengths to the chart. With a large dialysis services for both inpatient and outpatient, and vast medical practices, the company remains in the lead in the Healthcare Industry; the service and products provided by the company were also affordable which deepens the loyalty. Although DaVita Inc. was known for being the model of healthcare, the company still encounters competition in different geographies. This acts as an opportunity for DaVita Inc. as globalization increases it does not restrict the company because it can extend its operations to other countries, entering into new markets and making use of the opportunities that lie within that market. Though the company is still facing obstacles and competition, they hold highly motivated employees of various backgrounds and education from different countries which acts as a strength to leading DaVita Inc. to a successful long term. Knowledge from employees with different backgrounds can be a trustworthy source worth spreading through the world especially social media.
Some of the weaknesses that DaVita Inc. will experience along with competitors in the Healthcare Industry include higher employee turnover rates, reduced innovation, lack of financial planning, and COVID19 restrictions. As of right now, the world is experiencing a heavy pandemic of COVID19, and there has been a struggle to keep business stable. Once there is a change in currency, it can impact interest rates. As a care-giving organization, DaVita Inc. is focused on delivering the best of service to their patients, caregivers, and physician partners (DaVita Inc., Commentary, 2020). DaVita Inc. has been collaboratively working with the U.S Department of Health and Human Services, and other departments nationwide to ensure that the dialysis community is able to help each other. The company is working on the best clinical practice to the response of the COVID19. Such practice may include entrance restrictions to only patients and medical professionals, screening for symptoms and exposure, providing PPE to meet the guidelines to ensure safety for caregivers and patients, and providing masks to every patient and caregiver, or place a reminder to wear the mask at all times, and treating infected patients separately (DaVita Inc, Commentary, 2020). DaVita Inc. may expect a financial impact of COVID19 resulting from revenue loss, and the increase of treatment. Because of the uncertainty by the pandemic, it is believed that the impact will be driven by duration and severity. At this time, it is difficult to estimate the ultimate impact (DaVita Inc., Commentary, 2020).
When it comes to responding to COVID19, the dialysis process within the company has been inadequate leaving the most vulnerable patients exposed to COVID19, especially patients who are diagnosed with the end-stage renal disease. Not only that it leaves a risk to the patients, but also to the dialysis employees. DaVita Inc. provides nearly 3,000 kidney dialysis services in the United States service over 100,000 patients and 200 outpatient dialysis outside of the United States service 28,000 patients (DaVita Inc., About, 2021). It is difficult to the fact that DaVita Inc. began experiencing shortages of staffing as the virus spreads through clinics. Given the increased need for caregivers who can support both shifts and centers meant for COVID19 patients. Rather than purchasing significant property it was rented, leading the company piled with large amounts of rent adding the cost along with the process of caring for patients infected by COVID19. One of the few ways of resolving this issue is to increase the proportion of owner property to rented property through low interest rates.
IFE Matrix Analysis. Source: Think Insights
The IFE Matrix Analysis acts as a strategic management tool to evaluate the internal environment of a firm, and reveal its strengths and weaknesses. Strengths and weaknesses are the key internal factors in the analysis. Simply stating that the IFE Matrix Analysis evaluates how the company especially DaVita Inc. is performing regarding the identified internal strengths and weaknesses (Maxi-Pedia, IFE Matrix, n.d.). Based on the following 8 factors, each factor was given a weight percentage, rating that indicates the importance of the factor, and the overall weighted score. With ratings of 1-4, 1 indicates the least importance and weakness, while 4 indicates the great importance and strength. To receive the weighted score, both weight and rating must multiply. After receiving the weight score from each factor, the weight scores must add up to receive the total weighted scores and see whether or not the company is in a weak position in the industry. The default score is 2.5, so anything below that default is considered the company placed in a weak position. With DaVita Inc. receiving a total weight score of 2.87, they have a solid internal foundation.
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