Strategic Choice and Evaluation Paper

Strategic Choice and Evaluation Paper

Introduction

In this paper, the author will conduct an analysis of the strategic choices a company makes in order to gain competitive advantage. Today, organizations, operating locally and internationally, attempt to acquire a position of strength that allows it to distinguish itself from its competitors. This position will be achieved through a distinctive element that, if it is perceived positively by consumers, creating a competitive advantage. This element can be, among others, a unique product, a different way to use the distribution network, a promotional tool or a pricing advantage. For the company, it is acquiring a unique position through a feature that gives it precedence over any other company (Treacy, 1995). In this paper, the author will conduct an analysis of internal and external environment of quest diagnostics to create an understanding of strategic decision-making and its relation to acquiring competitive advantage. The author will also evaluate the alternative strategies; the organization adapts to achieve growth. Moreover, the author will also scrutinize the best value discipline, generic strategy, and grand strategy for Quest diagnostics. Finally, the author will provide recommendations for future improvements.

Company Overview

Quest Diagnostics, commonly known as Quest, is a US based company involved in providing diagnostic testing, and other related information and services, via its network of health care institutions. The company is situated in Madison, New Jersey and has more than 42,000 employees. There are two segments in which the business operates. First, Quest is one of the largest commercial clinical testing companies in the US. The other operating segment consists of the company's non-clinical testing businesses. This includes clinical trials testing business, risk assessment services, healthcare information technology business, and diagnostic products business.

Discussion

Best value discipline

In order to gain sustainable and competitive position in the industry, and to become the market leader, Quest Diagnostics would have to develop and focus on one of the three value disciplines:

Operational Excellence

Operational excellence is about business processes of the company. Operationally, Quest Diagnostics should focus on offering customers one thing: best quality service at the lowest price. For traditional companies, the best cost means the lowest price - find a way to manufacture and distribute a cheaper product to sell at the best price. The company should choose to handle the discipline of operational excellence by providing low prices and free services. In order to provide the free service, the company should implement structure and procedures that support such delivery. The operations must be governed by strict procedural manuals, so that the company works as a machine. The company must rely on all the technological tools in order to perform the tasks, more effectively and efficiently (Wheelen, 2010).

Product Leadership

This is another important feature of Best value discipline, which Quest Diagnostics should seek to implement. The characteristics of this discipline are to focus on products and services that exceed the limits of performance. The company should always strive to be at the forefront of the market. Creativity is an essential component for the performance of ...