Eight guidelines for developing a strategy for the '90s.

Abstract

Regardless of the outcome of federal reform initiatives, health care is undergoing structural change of unprecedented magnitude. Structural change occurs when there is a fundamental, sustainable change in the values and purchasing behavior of buyers. During such times, market leaders are extremely vulnerable to competitive threats due to internal bureaucratic barriers. Witness the U.S. computer and automobile industries. As Robert Lutz, president of Chrysler, points out, "Being large doesn't mean being safe. The large won't eat the small. The swift will eat the slow." During this dynamic period in health care, it is critical that strategy be on target. Periods of structural change are filled with numerous threats as well as opportunities. The following are eight guidelines for developing health care strategy during the structural changes of the '90s.