Case
Teaching Notes
Supplementary Resources
Abstract
Dr. Phillip Hoopes, a LASIK surgeon, is considering how to respond to discounting by his competitors. He had built a high-end practice with costly advanced technology, but discounters had recently entered the market and other high-end practices in the area were starting to offer deep promotions in an effort to compete.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: LASIK
Source: Seeta Eye Centers, https://www.seeta-eye-care-center.com/what-is-lasik-laser-eye-surgery.html (accessed January 11, 2018).
Exhibit 2: Hoopes Vision Financial Results
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | |
| Surgeries | 728 | 1,802 | 2,308 | 3,338 | 3,779 | 4,188 |
| Price | $1,800 | $1,800 | $1,800 | $1,800 | $1,850 | $1,850 |
| ($ in thousands) | ||||||
| Billings | 1,310 | 3,244 | 4,154 | 6,008 | 6,991 | 7,748 |
| Collections | 1,114 | 2,757 | 3,531 | 5,107 | 5,942 | 6,586 |
| Co-management | 157 | 389 | 499 | 721 | 839 | 930 |
| Royalty fee | 109 | 270 | 346 | 501 | 567 | 628 |
| Variable income | 847 | 2,098 | 2,678 | 3,885 | 4,537 | 5,028 |
| Fixed costs | 1,875 | 2,436 | 2,718 | 3,274 | 3,685 | 3,876 |
| Operating profit | (1,028) | (338) | (31) | 611 | 852 | 1,152 |
Source: Hoopes Vision.
Exhibit 3: Hoopes Grand Opening Ad
Source: Hoopes Vision.
Exhibit 4: Hoopes Advertising, 2002
Source: Hoopes Vision.
Exhibit 5: Hoopes Advertising, 2004
Source: Hoopes Vision.
Exhibit 6: Allegretto Wave Laser
Source: Global DSR, “Alcon Allegretto Wavelight 200Hz,” http://www.globaldsr.com/equipment/refractive/excimer-lasers/alcon/alcon-allegretto-wavelight-200hz (accessed January 11, 2018).
Exhibit 7: Pricing and Volume Estimates, 2005
| Competitor | List Price/Eye ($) | Total Procedures |
| Hoopes Vision | 1,850 | 4,188 |
| Lasik and Cataract Center of Utah | 1,850 | 1,600 |
| Eye Institute of Utah | 1,600 | 1,500 |
| Moran Eye Center | 1,700 | 1,500 |
| Lasik Plus | 999 | 1,300 |
| TLC | 1,500 | 1,200 |
| Lasik Vision Institute | 299 | 600 |
Source: Hoopes Vision.
Exhibit 8: Brand Awareness Data, 2006
| Brand | Unaided Awareness (%) |
| Lasik and Cataract Center of Utah | 12.8 |
| Hoopes Vision | 9.9 |
| Moran Eye Center | 5.9 |
| Eye Institute of Utah | 5.7 |
| Mt. Ogden Eye Center | 1.6 |
| The Laser Eye Center | 1.4 |
| None | 55.0 |
Source: Hoopes Vision.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
