Why It’s Critical to Analyze Multiple Market Factors For True Growth Insight
Imagine this scenario: You’re a strategic planner for a healthcare organization, and you discover that your facility has gained market share in your service area. Excited, you put the trended market share into a colorful graph and show it to your executive team.
“Great! So what?”
On the surface, this may seem like an odd question. Increased market share is desirable, right?
Well, probably, but by asking ourselves “so what,” we can see that more than just trended market share is needed to provide true strategic value.
Seeing that market share has increased only tells part of the story. In order to gain strategic insight, we need to also look at trends in the facility’s absolute volume of discharges. Analyzing market share and absolute volume of discharges side by side is key, because they can actually move in opposite directions.
If the total market volume shrinks more rapidly than your facility’s volume shrinks, you’ll see an uptick in market share even though your discharge volume decreased. Conversely, you will actually see a drop in market share even if your discharge volume increases, if the total market gains discharge volume more quickly than your facility does. And even if market share and absolute discharge volume do move in the same direction, they may move at different rates.
Is there really as much to celebrate if your market share increases by 20%, but your discharge volume only increases by 1%?
The point is, looking at changes in market share alone is not sufficient to gain strategic insight. Rather, looking at changes in market share and changes in discharge volume together will tell you where you have opportunity for growth—or cause for concern.
Addressing Market Data Holistically
Noticing one area of growth is a great start, but it’s important to quickly broaden your consideration to recognize how this area of growth compares with other market data. In the case of this example, market share growth could lead to different conclusions, a few of which may be the following:
- If your volume increased at a greater rate than total market volume increased, this means your increase in market share reflects the fact that your growth outpaced market growth. So, not only is there more market demand, but you are capturing more of it.
- If total market volume decreased at a greater rate than your volume decreased, you would still see an increase in market share, but only because your volume loss was not as severe as total market volume loss.
- If you see that your absolute volume has held steady, but that total market volume has dropped (meaning that your market share has increased, but only because the total market has fallen), then maybe you need to brace for an impending drop in demand.
None of these potential strategic insights would be gained by looking at market share trends alone. So, the next time you are preparing a presentation on trends in your facility’s market share, wow your executive team by being one step ahead of the game and pre-empting the inevitable “so what” question.
By already analyzing the story from both angles, you will be able to provide true strategic value from the data.
While it can be exciting to focus on data that highlights apparent growth trends, without a complete picture of what’s really happening, your enthusiasm could be misguided. The most natural and efficient way to access multiple data sets in one place is with a tool that can easily access a big-picture overview of your organization’s market standing.
If you have to visit more than one spreadsheet, contact several analysts, or dig through more than one database to find what you need, then it may be time to consider onboarding a software tool that can house all your critical market data in one location. Having a tool specifically designed to streamline the process of accessing a holistic market picture can create time for you to focus on next step initiatives that you determine are necessary based on the insights you uncover.
Stratasan’s solution to consolidating and visualizing market data in one central location is Launch Pathway. Equipped with a tool like Launch Pathway, you’ll be able to easily expand your market intelligence to include all the important details necessary for a true growth picture.
Contact Sean Conway for a demonstration today. Sean will demonstrate how Launch Pathway can take your market data insights to the next level, allowing you to have a broader and more accurate understand of your healthcare organization's market standing and insight into where additional focus and growth strategy is needed.
Article by Ashley Graham, Senior Health Analyst for Stratasan