Jeevan Nursing Home: Fighting Low-Priced Competitors During an Economic Downturn

Abstract

Dr. Jeevan Dhar owns Jeevan Nursing Home (JNH), located in a small town called Rampurhat, in Birbhum district, in the state of West Bengal, India. JNH has a reputation for excellent patient care, the latest technology, and affordable pricing. The COVID-19 pandemic reduced the income of people, forcing them to delay and reduce non-urgent healthcare expenditure and seek lower prices. Additionally, aggressive advertising and lower prices of two newly opened radiology centres in Rampurhat adversely affected JNH’s business in 2020. Jeevan ponders his options for improving the viability of the business of JNH in 2021 and in terms of long-term growth. He must choose between the following options: (1) matching the lower prices of the competition; (2) advertising to educate patients about the superior value offered by JNH; (3) devising a plan to provide basic services at lower prices than the competition; or (4) offering value-added packages at higher prices. Students will be asked to provide advice to Jeevan on which option to choose.

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