Introduction
The significance of international business cannot be neglected in the modern business environment wherein organizations have the privileges of higher revenue growth and promotion of opportunities for sustainability. The distinct factors that are involved in the international business activities of an organization refer to the macro and micro environmental analysis, the selection of a specific market entry strategy, and the appropriation of a marketing mix moderation in the foreign market environment.
The following report aims the illustrate the strategic direction that can be assumed by NHS for expansion in the European market especially directed toward the Greek market. The essential highlights of the report would include a prolific SWOT analysis for analyzing the microenvironment of NHS and the PESTEL analysis is implemented for obtaining plausible insights into the macro environment of the healthcare service industry in the European Healthcare services market in Greece. Another profound aspect of the report is observed in the international market entry mode preferred by NHS which is illustrated alongside justification with literature references.
Thereafter, NHS aims to associate with the marketing mix elements which could be moderated to the new market environment according to the suitability of the organization. The promotion of NHS services in the Greek market has also been validated in detail in the report through the depiction of critical reflection on market segmentation, structure, competitor behavior, buyer behavior, and distinct international market scenarios.
Task 1
Analysis of the European healthcare industry:
The essential elements that could be related to the analysis of the European healthcare industry can be observed in the microenvironment and macroenvironment of the organization. Globalization has invoked prominent implications against the conventional models that have been applied by organizations for years. As per Akaka, Vargo & Lusch, the primitively developed versions of products are not acceptable in the present business environment which has led to the requirement of potential market research depicting the suitable markets to enter. It is essential to observe the complexity of overseas businesses and estimate the most suitable markets to enter (Akaka, Vargo & Lusch, 2013).
First of all, the suitable markets are identified by volume, growth rate, proximity, and flexibility of negotiations, and this stage is associated with estimation of whether the markets are familiar to the organization’s home environment or depict similar characteristics to the home market of NHS i.e. UK market. As per Authority, 2015, the prominent entities that could be related to the shaping of markets for an international business, and in this case, the NHS, refer to the macro environmental analysis using the SLEPT model for evaluating the market conditions in the Greek market (Authority, 2015).
Macro Environment
The prominent macro-environmental factors that would influence the entry of NHS into the Greek market include sociocultural factors and legal, technological, political, and economic facets of a business environment. The SLEPT analysis for NHS could be illustrated as follows.
Figure 1
Socio-cultural:
The socio-cultural environment of Greece is largely influential on the prospects for improving NHS’s business performance in the Greek market. Culture is identified as the observable patterns of behavior and beliefs that could be easily shared among individuals in a society. According to Baron, Warnaby & Hunter‐Jones, the complete assumption of the shared knowledge, complementary and acquired knowledge related to activities in a particular segment of the human population.
Some of the essential factors in the socio-cultural aspects of Greece’s healthcare sector include increasing expectations of patients in terms of quality and experience of care, aging population leading to increasing demands from healthcare service providers, variably changing demographic portfolios, and increasing literacy about the healthcare services (Baron, Warnaby & Hunter‐Jones, 2014). The deprivation profile is also a notable factor that influences the socio-cultural aspect of the macro environment in the European Healthcare industry.
Legal:
Legal regulations are mandatory in the healthcare services industry and are primarily related to the increasing concerns for the litigation culture. As per Brannen, Piekkari & Tietze, the Legal environment in a specific macro environment can be characterized by three explicit dimensions such as local domestic law, international law, and native country home laws (Brannen, Piekkari & Tietze, 2014).
The legal precedents are also related to the introduction of the specific constitution which also impacts the service provision framework of NHS. The legal requirements refer to precedents of treatment within 18 weeks which can be a profound implication for NHS to consider in its international market expansion.
Economic:
The legal precedents are followed by the economic requisites in the macro environment. The economic facet is associated with the reduction of funding for NHS and other prominent NGOs which could interact closely to deliver plausible outcomes. As per Czinkota & Ronkainen, the event of BREXIT has led to UK austerity complemented by the depreciation in global economic platforms alongside increasing the restrictions on access to capital and borrowing facilities (Czinkota & Ronkainen, 2013).
An Economic facet of the market environment can be apprehended based on factors such as GDP, import and export volumes, consumer spending, and disposable income alongside fostering production activity and growth projections in the populations of urban and rural areas. Furthermore, the tariffs of NHS are always associated with uncertainty and therefore they are related to historic incidents of volatility hence the economic aspect of the macro environment does not provide favorable implications for the improvement of the international marketing strategies followed by NHS.
Political:
Political factors in the macro-environmental factors for the Greek market for improving the strategic operations of NHS in the European Health service market. The primary influence of the political facet of the macro environment is associated with the modifications in major policies of the organization. According to Dwivedi, et al., The policies are also directed towards the institution of policies to provide home-based care services rather than relying on hospitals for healthcare services (Dwivedi, et al., 2016).
The quality regulation standards are also evaluated on the grounds of policies stated by agencies such as the Care Quality Commission.
Technology:
The technological factors that can be associated with the macro environment of the European healthcare sector reflect the improvement in pharmaceutical manufacturing technology and IM&T systems for addressing specific development requirements. The technological advancements are mandatorily required to be implemented in the Greek healthcare service industry owing to the improvement of practice and thereby ensuring the improvement of life expectancy.
Therefore, NHS has to ensure a critical evaluation of the different aspects of the macro environment of the organization to integrate the distinct implications in its international marketing strategy (Gordon & Oades, 2017).
The different aspects that could be associated with the illustration of macro environment analysis of the European healthcare sector with specific emphasis on customer service and compliance with the regulatory precedents associated with the provision of healthcare in Greece. Emphasis on socio-cultural and economic aspects of the macro environment in Greece would be a promising factor for NHS to review its international market entry strategies.
Macro Environment
The macro-environment analysis in the context of NHS initiatives for international business expansion in the European healthcare sector in Greece could be executed through the implementation of a SWOT analysis.
Figure 2
Strengths:
As per Grönroos & Gummerus, the strengths associated with the organization include the realization of research excellence in specializations such as cancer, cardiac afflictions, and pediatrics, commitment and proficiency of the workforce, improvement of emphasis and achievement in the context of the prioritized performance initiatives (Grönroos & Gummerus, 2014). Another strength that could be associated with NHS is reflective of the formidable financial position of the organization allowing it the opportunity to implement innovative measures for international market entry.
Weaknesses:
Weaknesses that could be identified in the case of NHS include the lack of information management frameworks leading to a reduction in the performance of clinical outcomes and productivity of the workforce. NHS has the potential for research which has not been accepted thoroughly in the international marketing strategies.
Furthermore, the confusion about the cost of services owing to limited granularity alongside minimal capabilities for reduction of fixed and semi-fixed cost base could also be estimated as notable pitfalls in the micro environmental analysis for the organization in the Greek market.
Opportunities:
Opportunities that could be accessed by NHS include an evaluation of the leadership role development opportunities and increased collaboration among the providers and partners for increasing the sophistication of primary and secondary care. The opportunities are also indicative of the facilities to secure pan-regional as well as regional service providers in the service portfolio.
Threats:
Threats for the organization can be observed profoundly in the recent increase in the entry of new competitors especially in the independent treatment sector which is capable of addressing the simple case mix. Furthermore, the commissioners are also implying a reduction of dependability on secondary care services which are worsened by the financial restrictions implemented in NHS for reduction of income and tariff deflation (Kaufmann, Czinkota & Zakrzewski, 2015).
The industry analysis also involves references to the use of Porter’s five forces framework and value chain framework and can be followed by market research to obtain a valid interpretation of the microenvironment for the organization. Furthermore, the association of other factors such as industry, market characteristics, suppliers, distributors, and customers alongside the competition in the healthcare services sector has to be collated with the findings of macro and micro environment analysis.
Task 2
Market entry strategy:
The micro and macro environmental analysis have to be followed by the identification of a market entry strategy that can cater to the specific requirements of international market expansion for NHS. According to Kumar, et al, It can be essentially observed that global marketing decisions are influenced largely by the macro and micro environment assessment and are considered major setbacks for strategic international initiatives such as pricing, entry mode, positioning, production, and promotion (Kumar, et al., 2013).
The market entry decision is formulated by the firm by the objectives and particular attitudes towards international marketing. Furthermore, the competence of managers for international operations could also influence the market entry method selected for an organization. The rationale for defining a particular market entry strategy to enter the European healthcare sector is facilitated by the estimation of outcomes that could be related to globalization. NHS could achieve potential cross-border exchange in terms of communication and technology, market access, competition, consumer demand and requirements, industry standards, and market opportunities through globalization (Lautier, 2014).
As per Giannopoulos, the capabilities of NHS to depict mature preparedness for internationalization strategy alongside a potentially global site selected for the international business expansion in the European healthcare industry. Selection of a specific market entry method would be dependent on different factors such as the relevance of company objectives with the value and magnitude of the proposed international business, existing investments in foreign markets, skills and competencies of international marketing management of the organization, and the size as well as financial capabilities of the company (Giannopoulos, 2012).
Another prominent entity that has to be discussed in the context of the decision-making about international market entry includes the moderation of risk and control. The involvement of the organization in international operations should also be evaluated to select a viable market entry strategy (Mostafavi, Salek & Walker, 2015).
Moderation of control and risk levels leads to the selection of distinct market entry strategies such as direct exporting, indirect exporting, manufacturing, and cooperative strategies. Direct exporting is considered as a proactive approach to international market entry, comprising direct investment, and is associated with main methods such as franchising, management contracts, agents, and distributors.
The promising factor noticed in the case of direct exporting is the facility of increased control and influence over international marketing activities. However, it is also critically associated with setbacks such as high costs and financial obstacles. Indirect exporting is associated with firms that have minimal resources and includes export houses, trading companies, and domestic purchasing. Indirect exporting is associated with minimal costs and risks albeit with the chances for limitations on the control which is apprehended at low levels.
Some of the possible global strategy options that could be observed in the context of the international market entry strategy of NHS include ethnocentric, polycentric, geocentric, and regiocentric strategies which should be selected based on the organization’s approach for standardization or adaptation. The direction of NHS towards standardization could be noticed in the prominence of elements such as product quality, product image, and organizational values and identity. The adaptation aspect of the global market entry strategy is characterized by an emphasis on sales, promotion, price, and distribution. The ethnocentric strategy is related to the emphasis on the domestic market alongside indicating the company’s obligations to comply with domestic standards and values which are formidably related to the other brands in the healthcare sector in Greece alongside the impression of the country in providing healthcare services (Shaw, et al., 2014).
The polycentric global strategy is reflective of the uniqueness of each country and relevant strategies to cope with the specific cultural facets of the countries. The egocentric or regional approach for international market entry could be validated on the grounds of concentration in particular regions. The regional portfolio is a prominent requirement in the case of a region-centric global strategy. The NHS could consider the regional approach for international market entry strategy so that it could emphasize the single market of Greece in healthcare services provision. Finally, another market entry strategy is observed in the global market entry strategy which is reflective of strategy development directed towards a single segment (Sweeney, Soutar & Mazzarol, 2014).
From an analytical perspective, the regional approach would be the most promising international market entry option for NHS since it has to emphasize the healthcare sector in Greece and the complexity of requirements in the industry validates the selection of the regional approach. The regional approach would help NHS in tailoring the branding and positioning aspects of the enterprise according to the market analysis of Greece’s healthcare industry. Furthermore, NHS can obtain plausible improvements in its portfolio through references to the outcomes of macro-environmental analysis, product support, distribution and production issues, comprehensive internationalization strategy, and the estimation of target customer segments and their demographic composition.
Task 3
Marketing mix:
The marketing mix selected for NHS in the European healthcare services market would be primarily based on the factors of company identity and image, products, sales, promotion, distribution, and price. As per Zainuddin, Russell-Bennett & Previte, the moderation of the distinct components of the marketing mix by the newly identified Greek market is necessary for the international marketing mix for NHS. The international marketing strategy of NHS is vested in the region-centric approach according to which the organization has to emphasize the regional aspects of Greece such as economic conditions and cultural determinants which could shape the course of business in the future (Zainuddin, Russell-Bennett & Previte, 2013).
It is essentially observed that the marketing mix for an organization could be directed towards varying directions of standardization or adaptation. Standardization or adaptation of the marketing mix with the estimated levels of risk and control in the organization is a profound initiative on behalf of an organization’s management. The risk is inevitable in an international market environment and in the case of NHS, the risk is determined by the socio-cultural variations and economic downturns experienced due to the Eurozone crisis faced by Greece.
An element in the marketing mix:
Marketing efficiency in the international market environment can be apprehended from the marketing communications aspect of the organization. The purpose of emphasizing the communications marketing mix would be suitable for NHS to adapt to the existing health service frameworks in Greece since it enables NHS to communicate the efficiency of services provided by the organization to customers without any prominence. Most of the time, business organizations depict failure of marketing communications owing to the inconsistency of communication delivered to customers by the organization’s staff at different strata of the organizational management, incompatibility of corporate identity and the business units and departments in a country and the limited coordination among the messages in the context of distinct promotional tools, product specification changes, and distinct pricing in the markets of different countries (Mostafavi, Salek & Walker, 2015).
Therefore, NHS has to consider these factors in its marketing strategy for international business and select from standardization and adapting to cater to the objectives of internationalization. Standardization is associated with global companies that have a global brand identity which signifies that the marketing communications of the organization are subject to concerns for efficiency and added value in the products. The process of standardization is realized at an operational level in the context of advertising with certain profound characteristics such as audio and visual content in the advertisements, featuring celebrities and acknowledged people. Adaptation could be assumed by NHS as a viable response to internationalization initiatives allowing global companies to serve as local business units in different markets across the globe.
The process of adaptation is generally associated with cultural differences in the context of international marketing communications. The examples of cultural bias relate to the stereotypes based on gender and disparities between collectivist and individualistic approaches followed in the specific geographical jurisdiction (Kaufmann, Czinkota & Zakrzewski, 2015). The commonly associated elements with the adaptation in internationalization initiatives include the use of humor, national personalities, and preferences for either spoken or written communication in large shares and the feasibility of applying the strategy in international marketing initiatives concerning varying environmental conditions. These factors have to be evaluated to determine a new marketing mix for NHS in the Greek market.
Therefore the product and promotion of the NHS have to be adapted to the Greek culture since the requirements of healthcare services have changed recently. Socio-cultural apprehensions could be a major obstacle to marketing communications strategy since media availability; ethical criteria and audience perception create ambiguities for the organization’s performance in internationalization. The validation for price and place distribution is directed towards standardization in the case of NHS (Gordon & Oades, 2017).
Considering the varying implications for standardization or adaptation in the different elements of the marketing mix is necessary for the context of NHS’ initiatives to expand in the European healthcare sector, particularly in the Greek market. The foremost reason why NHS must ensure standardization and adaptation of the elements of the marketing mix is to balance the risk and control levels in the foreign market environment i.e. Greece. NHS has a formidable marketing mix composition with its products and pricing as prolific attractions for customers and therefore it should capitalize on available opportunities and distinct competencies of the organization in the healthcare industry.
Conclusion:
The report presented a critical examination of the macro and micro environmental analysis of the Greek market for healthcare services, proposed market entry strategy, and concerns for adaptation or standardization of marketing mix elements for the promotion of the services of NHS in Greece.
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