Question

Topic: Global Source Health Care

Summary:

Background

Sales Strategy
Global Source presents itself as an international recruitment specialist while offering domestic travel staffing as an add on service.
This strategy is currently ineffective.
Allocating Resources
Three Options:
Continue aggressive account acquisition
Penetrate existing accounts
Cross-selling existing accounts
Penetrate Existing Accounts
Cross-Selling Existing Accounts
Continue Aggressive Account Acquisition
Cold-calling hospitals, continue current sales strategy
Global Source Healthcare: Allocating Sales Resources
What Should Global Source Do?
Up-selling to current accounts
Pros
Cons
High staffing margins 50-60%
Cons:
- Too much competition
- Too little staff
- Takes away effort from
competitive advantage
- VA is only large business prospect.
Help entrench Global Source in current accounts
Maximize revenue potential from each client
Pros:
- VA owns network of 163 hospitals
- Excellent reference account
Complex process that many hospitals are unfamiliar with
Clients need to be educated on benefits of international recruitment
Easy to up-sell existing international recruitment clients on domestic staffing
Client relationships are already fragile
How is the Sales Strategy ineffective?
Competitive Advantage in international staffing of nurses
Competition has difficulty understanding local dynamics of India market
Untapped India market
Easily replaced as a vendor for domestic staffing
International Versus Domestic Staffing Breakdown
Shamail Siddiqi - CEO
International
Domestic
Many hospitals did not seem comfortable dealing with one company for international and domestic staffing
Global Source does not have a competitive edge as a company
People responsible for international staffing had nothing to gain by negotiating better billing rates for domestic staff.
- Founder of Global Source Health Care
- Saw an opportunity in International sourcing for healthcare companies

- Aligned themselves with a CGFNS test-preparation company in Bangalore to insource Indian nurses
Very competitive market
Low staffing margins 10-15%
Pros

Cons
Hospitals hesitant to bring on new staffing companies.
Global Source is secondary vendor in marketplace for domestic staffing, and can easily be replaced.
Not enough expenses or resources to recruit large international staffing.
Established a strategic alliance with a CGFNS test-preparation company in Bangalore
Global Source
- Limited sales personnel and budget
- Healthcare staffing company
- Domestic and international services
- First international
- Forced into both due to lack of funding

Questions: I just need you guys to help me answer the following question please.

What are the primary intangible elements of the Global Source Healthcare service the salespeople should emphasize?

With the domestic market experiencing problems, should Global Source move to an exclusive focus on international service?

Why or why not?

Answer 1

1. What are the primary intangible elements of the Global Source Healthcare service the salespeople should emphasize?

Ans 1. The global Source healthcare service salespeople should focus on the following intangible elements:

• Build on the already Good relations in the local hospitals
• Use the existing excellent reference accounts, which can generate good business and develop more business.
• Build and strengthen relationships with clients to improve sales
• Build on their competitive advantage in international staffing of nurses
• Exploit knowledge of the local Indian market and tap the untapped market available.
• Upsell to existing international recruitment clients on domestic staffing

2.      With the domestic market experiencing problems, should Global Source move to an exclusive focus on international service? Why or why not?

The Global source should focus on International service due to the following reasons:

Advantages:

• They have a competitive advantage in the global market and the profit margins are better.
• The same domestic clients can be used for up-selling and supply additional manpower in international markets.
• The knowledge of untapped Indian market also gives them a global advantage

Disadvantages are as follows:

• The international market is very competitive
• The margins in recruitment are low 10-15%
• The domestic market is not motivated to recruit from new companies
• They are the second source and can be easily replaced