Hill-Rom Case Study

Hill-Rom provides a wide variety of products and services under main categories which can bee seen below:
b. How Products or Solutions Might Reduce The Total Cost For Hospital
Pricing Strategies and Differentiation
As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.

According to a study mentioned in the textbook, benefits have a bigger effect on perceived

Adopting a strategy of differentiation makes firms provide products and services what are distinct in some way valued by customers.
In medical equipment industry, firms mainly compete on differentiation. Product quality and safety, product variety, customer service, and R&D are the main factors to achieve differentiation. Hill-Rom provides wide variety of high quality and safe products and services to its customers. Unlike its competitors, Hill-Rom mainly competes in the health information technology solutions, and medical equipment management services. (Duncan, Hebert, Rose, & Zoch, n.d.) In addition, it is needless to say that Hill-Rom has huge R&D investments, as well.

Since the customers in this industry are not price sensitive, having a competitive advantage is vital for firms. Hill-Rom considers customer service is its reputation, thus gives significant value to its customer relationships. In addition, its variety of products gives high competitive advantage to the

The leading cause of injury to nursing and hospital staff is the repeated manual lifting, and lifting and transferring of patients. This increasing incident rates cost to healthcare organizations. “Safe Patient Handling” programs have become one of the top initiatives for healthcare organizations. With the help of this program, work-related injuries and injuries due to patient falls can be reduced. Hill-Rom’s high technologies, processes, and tools assist hospitals to enhance outcomes for patients.
This program has started to help caregiver injury and generate economic benefits. Through the implementation of this program, a number of healthcare institutions have reached better outcomes. Some of the clinical results are:
• The use of ceiling lift systems has been shown to decrease spine forces experienced by caregivers during patient handling in one laboratory-based study.
• The implementation of a safe patient handling program has been shown, at one institution, to reduce workers’ compensation costs by 40% and lead to an increase in employee