Scandinavian Model in Guinea Case Solution & Answer


The 24 hour service develops moreacceptability for the shareholders as compared to other option.It is because, since the market is already developed and the customers are well-aware of the company name, the service extension will generate rapid market awareness that would lead tosales and thus profitability.Also, it is more suitable for SCH to pursue market penetration and hold the industry effectively before moving to product development.This will anchor its position in the market and flank the competitors to tap the market opportunity. (Johnson, 2010)


By analyzing the abovemodel, it is recommended that the company should focus toward market penetrationsstrategy, as it is less risky and the returns are guaranteed due to existing market presence and strong brandpositionand service awareness.In doing so, it should hire the contractual staff on particular wage ratio. This will enable the company to manage the human resource cost and coverthe expense in the particular time through the patient fees.

Also, the company should develop a small transportationplanfor the nursing cantered with the association of the government to lift the burden of transportationcost in order to effectively managethe businessstrategy of cost leadership in the market, sustaining the operationsand market share in the long run andunderthe turbulent market situation.


Since the company alreadyoperates in the customized nursing service,patients and families are satisfied with the service, the expansion of the company service to 24 hourscustomized service will be highlysuitable to the company, as it will synchronize with the current market effectively and also offer anyextend value to the shareholders through increased servicelevel, acceptability and thusprofitability.Also, theinitiation of 24-hour home care servicewill typically integrate and align the internal andexternal expertise and resources more effectively as compared to the other opportunity of product development.

Also, since, the company lacks the financial assistance andthemodel of home based treatment is still at infancy, it may notattract the shareholders since the value is uncertain in future.


The opportunity to increase the existing market series and offer 24hour nursing care to the existing market is more feasible than new market development.It is because, the 24-hour service of the company can be offered by hiring theadditional human resource on contractual bases, whichwill not burden the companyas compared to the development or implementation of suchtechnique andequipment that require heavy financial resources to back up the strategy of new product development. Hence 24 hours market penetration strategy is more feasible than product development strategy.

Evaluation of the opportunities

According to the Johnson, Scholes and Whittington’s framework, an opportunity should be feasible, suitable and acceptable to the business, and shareholdersrespectively and should develop strong market value that increase the shareholder value and equity in long run and offers a sustainable operational guarantee to the shareholder by pursing certain strategy.

Under the three criteria, the opportunities are discussed below

Product/Service Development

The company can also pursue theproduct development strategy in tappingthe new market of home based treatment with home based services through modern equipment and techniques, mitigating the need to visithospitals frequently.This will allow the company to tap intothe new market and capitalize the market opportunity before the competition.The new target market will allow the company to expand its market share and also hedge the risk of dilution in the market in the long run. Though the market is still untested and the results are uncertain, the right development of the strategy to tap the new market will allow the company to sustain its business and also divert the dependence from one sole operational base of the survival in the market. (MS Editorial Team, 2015)…………………….

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