Health IT Executive Summary

serves multiple purposes in terms of identifying competitors who exhibit the same or similar competitive capabilities and market position in relation to its competitors (Strategic Group Mapping, 2010)
Understanding the strategic tendencies of the organizations you are competing against is just as important as knowing who your competitors are. As depicted in Figure 1, QSSI’s market position is currently at the bottom of the low profitability quadrant for the Health IT industry. The high end of the low profitability quadrant is shared with larger and highly competitive organizations like Accenture and Deloitte.
The low quadrant of the profitability strategy map is comprised of large and medium sized organization with varying degrees of experience

Defense contractors including CACI, General Dynamics, and Lockheed Martin are new entrants in the Health IT industry because they made strategic decisions to do so. Based on the success these contractors have experienced, QSSI expects that both commercial and other defense contractors will mimic this behavior and enter the market in the near future. The decision to diversify product offerings is often based on a decline in opportunities in the organization’s existing market. These organizations entered the market by acquiring smaller entities with expertise and reputation to compete in the market place. These acquisitions led to organic growth in the marketplace and made the organizations high competitive given the brand recognition and past performance record. This proved to be a successful strategy as the defense contractors obtained contracts and resources with expertise to provide value added service to Health IT customers. Thus, defense contractors have provided a blueprint for other organizations obtain organic growth and avoid delayed revenue streams as a result of a compressed learning

The organization’s strengths include its highly technical resources, past performance, and industry competencies. The combination of these elements makes the organization highly competitive despite its shorter life span in the Health IT market. On the other hand, the organization has weakness, which may preclude the organization from organic growth. For instance, the organization is the primary contractor on two high profile and political projects that require advanced expertise in healthcare.gov systems and processes. In the event that the organization needs to adapt lean practices, it will be difficult to share resources across projects. In addition, QSSI lack diversification in terms of product offerings as the contractor’s primary revenue stream is derived from its Health IT customers. If the government shifts its focus from healthcare to defense for instance in the near future, it will reduce the number of contracting opportunities in the market