Greater awareness of competition from abroad is finding its way into companies in wide-ranging industries. In some cases, companies take the first step in educating clients to counter extremely local perspectives. In others, clients and consumers bring competition directly to the sales process. Global competition directly impacts more than sales. It also impacts jobs.
TO THE CUSTOMER
The 25 employees of Health Options Worldwide Inc., whose corporate office is in Princeton, N.J., are globally aware, according to Clark Lagemann, vice president of Operations. He says that work in other nations and company communications with overseas providers increases awareness of international competition. American patients who leave the country for care present competition for his company. According to an April, 2011 survey of 4,000 adults by the Deloitte Center for Health Solutions, “25 percent ... would consider traveling outside the U.S. (for) a necessary hospital procedure.”
Health Options develops technology to reduce healthcare costs for corporate clients whose employees might have chronic diseases. “(Our) employees realize they need to compete at a higher level,” Lagemann comments. He points to the number of medical tourism companies – 63 in the United States alone, according to the International Medical Travel Tourism website. Lost patients signify lost jobs.
“How easy it is to find a similar service in an overseas market,” he observes. “We try to make a service of higher quality through technologies built from the intellectual property of our people.”
Health Options goes out of its way to educate hospitals about competitors beyond our borders whose services might attract Americans. “This helps them improve their service offering and make their costs more attractive,” he explains.
How does the company do it? “We help them design strategies to keep local patients coming into our facilities,” Langemann says. “We make them aware of how people are shopping for their healthcare needs. We help (domestic) providers be more efficient in keeping care locally.” Lagemann argues in favor of patient safety, treatment in a healthy environment and closeness to family. Efforts to educate clients add up to what he calls a “huge push” that, he says, has helped hospitals succeed in retaining patients.
FROM THE CUSTOMER
Consumer questions about less-expensive merchandise from abroad reach B.Witching Bath Co. LLC, according to Barbara Bruce-Ross, president of the Hawthorne, N.J.-based 40 year-old bath and beauty products manufacturer. Inexpensive imports from China put severe pressure on prices, but European brands can be a problem, too.
“They’re perceived to be of higher quality and to command a higher price,” says Bruce-Ross. Some of their prices exceed hers. Both retailers and consumers want to know why, if the line is made here, it costs less than a European product. Bruce-Ross responds that high quality doesn’t necessarily require a high price.
“People are very price-conscious because of the economy,” Bruce-Ross states. “They’re looking for quality.” Thirty-five independent contractors assist in training the company’s 500 retailers nationwide, whom they win over against Canadian and European lines.
“Education is so important right now,” says Bruce-Ross. Her employees stress that products are manufactured here out of wholesome ingredients, carefully inspected, that soaps are handmade, sometimes requiring 30 steps.
B.Witching, like Health Options, is very aware of the need to create jobs. Bruce-Ross just hired two employees, which indicates a level of success in competing with companies from other countries.
Sometimes, when global awareness is lacking, companies take the initiative to educate their clients. In other cases, consumers and corporate clients are already aware of it and bring the challenge to companies. Global competition won’t go away. These two companies reflect that it’s a factor regardless of industry and that every company, however local, needs to consider it in its client and/or customer interactions.
Dr. Mildred L. Culp welcomes your questions at culp@workwise.net. © 2012 Passage Media.
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