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How Does Shouldice offer a Superior Value Proposition Relative to Its Customers, Remain Successful, and Balance Low Cost with High Quality?

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Essay title: How Does Shouldice offer a Superior Value Proposition Relative to Its Customers, Remain Successful, and Balance Low Cost with High Quality?

How does Shouldice offer a superior value proposition relative to its customers, remain successful, and balance low cost with high quality?

Data Summary

Benefits purchased by the consumer:

Shouldice Value Proposition

• Early ambulation following surgery

o Use of local anesthetic

o Nature of procedure

• Design of facility

o 130 acres

o 17,000 square feet

o 89 beds

• Dr. Casim Degani, internationally recognized authority

• Specialized procedure

• Patients administered anesthetic in operating room

• Upon completion of operation: patients are fully aware of what is going on

• Counseling activities

• Atmosphere

• Experienced staff

Shouldice way compared to other hospitals

• Recovery

o Practically cut in half

• Atmosphere

o Carpeted floors

o No Bed Pans

• Lower Costs

• Administration of the anesthetic

• Being aware of what is going on after surgery

Target Group of Customers: Commonalities

• Only external abdominal hernias

• Recurring hernias repaired elsewhere

• Roommates have similar jobs, backgrounds, or interests

Service Delivery: Production Process

• Thoughtfulness

• Service Blueprint attached

Five Dimensions of Service Quality

• Reliability

o Schedule

o Pricing

o Delivery

o Problem resolution

• Responsiveness

o Accessibility

o Willingness to listen

o Immediate attention

• Assurance

o Trust & Confidence

o Experience

o Skill

o Reputation

• Empathy

o Specialization

o Like family

o Specialized attention

• Tangibles

o Brochure

o Atmosphere

Employment at Shouldice: Compared to Other Hospitals

• Nurses

o Ratio 1:15

o Other Hospital 1:4

o Counseling Activities occupy a good portion of their time

o Waiting list for employment

• Doctors

o “Watch kids grow up”

o On call

o 15% higher income

o few elect to leave

• Administration & Staff

o Non union

o Low turnover

o No Fire Policy

o Cross Train

Growth Alternatives

• Saturday surgeries

• Expand # of beds

• Toronto expansion

• United

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