history that dates back to the mid ‘70s. Kathryn Hamilton and her husband have established a respectable company that originated from the need for long-term healthcare for their ailing parents. In essence, they have a good understanding for what families of long-term healthcare patients are looking for. They have used their personal experience to their advantage to capture a market opportunity. This strength helps Longevity by giving the company an image of quality care and not just a profit-seeking organization.
Another obvious strength is their existing operations in Grand Rapids, Michigan. They have seen a lot of growth and have maintained successful financial performance along the way. Longevity's successful operations have given them a basis for future growth and the know-how of understanding the long-term healthcare market.
In addition, a major strength for Longevity is their wide range of products and services offered. In addition to nursing care, Longevity offers rehabilitation services, subacute care, and owns its own pharmacy in the Grand Rapids area. Patients are categorized by their needs and can customize services to fit these needs. This is a crucial strength because it adds personalization to the services, which ultimately effects customer satisfaction.
[...] In addition, the long-term healthcare industry is going through restructuring. Healthcare reform is expected to extend the use of Medicare for at home care. This would pose a major threat to Longevity, because most people would rather be cared for at home than relocate to a hospital- like facility. Healthcare reform is also expected to increase regulation of facilities, which means stricter laws and ways of doing business. Longevity will definitely be affected by healthcare reform, especially if they are not flexible enough to make necessary changes. [...]
[...] In general, people are getting older, life expectancies are getting longer, and customers want to pay less for long- term care. Currently, long-term healthcare has an annual growth rate of nine percent, which is expected to sustain over time. To Longevity, this means plenty of business and the opportunity to expand its services to different areas of the industry and different geographic locations. Another opportunity for Longevity is the growing need for treatment of Alzheimer's disease. The disease is becoming more common and the development for a cure is slowly progressing. [...]
[...] This would take some of the control out of the hands of Longevity management. Also, there is no guarantee that a company would be willing to partner with Longevity; therefore the feasibility of the alternative is uncertain. Analysis Graph Recommendation Our recommendation is for Longevity Healthcare Systems to both diversify operations and to vertically integrate. We feel that this option addresses the current situation and provides the company with both a unified corporate marketing strategy and a means for growth. [...]
[...] Longevity has been able to service these patients at lower costs than acute care hospitals. This has improved Longevity's attractiveness as a health care provider. Longevity's pharmacy operation has also deemed successful because it has added profits to the company. In addition, it was an important first step in vertically integrating the company within the health care industry. Longevity has been able to use this venture as a way to provide additional services to its clientele, while increasing revenues for the company. [...]
[...] Weaknesses The most important weakness that Longevity is facing right now is the company's lack of a corporate marketing strategy. Currently, each facility is in charge of its marketing and advertising that makes corporate decisions difficult to make. Without a single vision, a company cannot continue to grow successfully because it will find inherent problems with consistency. If each Longevity facility has a shared objective, it can be more effective at doing business. Another weakness that Longevity is facing is its operations in Toledo, Ohio. [...]
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