3d Clinic Report

To: Mr Schweikert, CEO 3DClinic

From: Ms Marlena Mende, Ms Anisha Shahnawaz Hamid and Mr Junjie Wang

Subject: Key strategic initiatives

3DClinic Pty Ltd - Key Strategic Initiatives

"Identify, evaluate and recommend no more than two key strategic initiatives our firm should pursue over the next 18 months"

Marlena Mende, Anisha Shahnawaz Hamid, Mr Junjie Wang

Semester 1, 2006

Student no: 222097, 227431, 196644

Strategic Management 325-664

Thursday Stream

Word Count: 2399 (2510 including 111 in-text references)

Executive Summary

The findings derived from the SWOT analysis, which was carried out to identify 3DClinic's external and internal environment, reveal multiple business opportunities for the company.

Several key strategies which 3DClinic could potentially implement in the near future have been identified. On the one hand, pursuing a strategy such as market penetration which would focus on creating a stronger presence in the Australian market seems like a viable option for 3DClinic. In addition, the company could concentrate on further innovative product development by leveraging its R&D facilities and competencies. On the other hand, 3DClinic could also consider market development and thus expand into foreign markets. Given the numerous international opportunities which were revealed by the SWOT analysis, this strategy seems feasible, too.

However, in view of 3DClinic's limited resources, the mentioned strategies, although viable, cannot be pursued all at the same time. Taking into account the SWOT analysis for 3DClinic, the report elaborates on the two strategies of market penetration and market development.

Whereas market penetration will be achieved through enhancing marketing activities and the formation of strategic alliances with educational providers, the strategy of market development will consist in 3DClinic going overseas. It is recommended that 3DClinic exports or licenses its products to India, a fast growing and IT savvy country, which is still a mainly untapped market with regards to medical imaging. While highlighting the various positive opportunities, the report also emphasizes the potential risks that accompany international expansion.

1 Introduction

A study of the external and internal environments that surround 3DClinic Pty Ltd. has revealed that the company is successfully leveraging its position in the medical imaging industry through its differentiation strategy. Efficient and effective utilization of the company's resources and technological capabilities has enabled 3DClinic achieve significant competitive advantage with the uniqueness of its product. Its visible success has provided the company with various opportunities for growth, for which suitable strategies need to be formulated. A SWOT analysis has been prepared (please see table below) from which possible strategic choices for 3DClinic have been derived and selected.

As the SWOT analysis reveals, 3DClinic has the option of pursuing opportunities that fit the company's strengths. By establishing alliances with organisations that aid in international growth, 3DClinic can hope to achieve a first-mover advantage in more profitable, untapped markets overseas with its unique product that is protected by patents. Using its strengths to control external threats such as increased competition can also be a feasible strategic measure for 3DClinic, by way of increased R&D to keep abreast of emerging technologies. To prevent the company's weaknesses from becoming vulnerable to external threats, especially when selecting a strategy for international expansion, it is crucial that 3DClinic selects appropriate and reliable channel partners. Overcoming weaknesses to capitalize on opportunities by investing in human resources for purposes of product development can also be an attainable strategic choice for 3DClinic.

The company could pursue any of the above mentioned strategies. However, sustaining a competitive position in the market could be achieved by just focusing

on their current competencies along with its current business level strategy of product differentiation. The corporate level strategies of market penetration and development have thus been proposed, which will permit 3DClinic to compete with its existing product to gain more market share and remain successful.

Table: Traditional SWOT Analysis

2 Strategic Initiatives

2.1 Strategic Options

By performing a SWOT analysis of 3DClinic, three directions have been identified which the company could take to expand on its core functionalities and diversify into new markets.

Penetration of the existing market that 3DClinic caters to, could be achieved through greater brand awareness of its product. This can be accomplished by means of increased advertising efforts in health and educational journals, and creating strategic alliances with companies providing them with valuable distribution channels to educational institutions. Sound marketing strategies will be required for such promotional activities to help the company gain a more visible presence in the Australian market.

Increased development of the existing product through new innovations and modifications could also help 3DClinic attract a wider clientele. By including new and valuable features the company would be able to target markets more effectively and compete on the basis of wider product functionality. The company might also diversify into creating more programs that are concerned with problems prevalent world-wide, such as AIDS or cancer.

Given the company's capabilities, developing the target market can also be considered as an option by 3DClinic, by tapping into newer markets overseas. With careful selection of appropriate channel partners, and leveraging on their global product features, 3DClinic could aim to extend its reach to more lucrative markets abroad such as India.

However,