Product Life Cycle & SWOT Analysis of Dental Clinic Business
- 2. Products generally go through a life cycle with predictable sales and profits. Marketers use the product life cycle to follow this progression and identify strategies to influence it. The product life cycle (PLC) starts with the products development and introduction, then moves toward withdrawal or eventual demise. This progression is shown in the graph, below.
- 3. The five stages of the PLC are: 1)Product development(BABY) -investment is made -sales have not begun -new product ideas are generated, operationalized, and tested
- 4. 2)Market introduction(CHILD) -costs are very high -slow sales volumes to start -little or no competition -demand has to be created -customers have to be prompted to try the product -makes little money at this stage
- 5. 3)Growth(TEEN) -costs reduced due to economies of scale -sales volume increases significantly -profitability begins to rise -public awareness increases -competition begins to increase with a few new players in establishing market -increased competition leads to price decreases
- 6. 4)Maturity(ADULT) -costs are lowered as a result of increasing production volumes and experience curve effects -sales volume peaks and market saturation is reached -new competitors enter the market -prices tend to drop due to the proliferation of competing products -brand differentiation and feature diversification is emphasized to maintain or increase market share -profits decline
- 7. 5)Decline(OLD MAN) -costs increase due to some loss of economies of scale -sales volume declines -prices and profitability diminish -profit becomes more a challenge of production/distribution efficiency than increased sales
- 8. Stage 1 Introduction: In initial days of practice, the young doctors(DR V) is worried because of low patient footfall but actually he can take this as an opportunity & utilize their free practice hours to grow their network. We all know that Network is the Net Worth! The idea of network building is not to get direct patients but to tell the world that "You Exist!" Every practice will take its own course to establish, however some tiny steps can act as catalyst. 1. Interact with as many people as possible around your practice and create rapport by talking about their interests. 2. Keep your conversation generalized, however if you get a chance, push about your profession in a softer way. 3. Look to grow your online network by simply creating (free) business pages for your practice on Google and social media sites such as Facebook, Twitter etc. 4. Post content in regular intervals once the pages are ready. SWOT ANALYSIS FOR A DENTAL CLINIC
- 9. SWOT Analysis Strengths 1.A strong skill set necessary for the procedures. 2.Well trained support staff. 3.A sophisticated training program that breeds the customer-centric model into the company culture. Weaknesses 1.Weak cash flow for the first year while owner tries to build a foundation for his implant practice. 2.The inexperience of running a business. 3.The difficulty of building brand as a start-up organization. Opportunities 1.Participation in a growing market. 2.Increased margins as dentist skill increases and procedure times decrease. Threats 1.Possibility of large increases for malpractice insurance. This could be a function of the individual dentist or a trend within the industry. 2.Increased competition as procedures become more popular.
- 10. EASY MODERATE DIFFICULT GRAND OPENING KINDERGARTEN/SCHOOL NEARBY PANELS KNOWN PEOPLE COLLEEGES NEARBY POLITICIANS SHOPS/CLINICS/PHARMACY NEARBY COMPANY NEARBY JV OTHER CLINIC/HOSPITAL TOOTH PASTE COMPANY APPAPRTMENTS NEARBY MAKE IT SPECIALIST CLINIC ARTIST/INSTA FAMOUS ASSOCIATIONS NEARBY/HEALTH TALKS IN CLINIC START WHITENING,BRACES, JEWELLRY,IMPLANT BILLBOARDS/SOCIAL MEDIA JV WITH MAKE UP ARTIST(COMBO) BEAUTY COMPETITIONS TALKS IN CLINICS/OUT CLINIC BANKS NEARBY EXPAT/TOURISM DENTISTRY