Discussion of Mountain the Mountain View Assisted Living Case Demonstrated Key Strategy Considerations of a Unique Market.

The Mountain View Assisted Living case demonstrated key strategy considerations of a unique market.

Strengths:  James decided he was going to build a sixteen or fewer residents facility, which would allow him to build in a residential area.  He felt a smaller facility would have the feel of more like home then something bigger.  This would also make the residents more comfortable and welcoming to people when making the transition from their home to Mountain View Assisted Living.

Opportunities:  James decision turned out to be a good opportunity targeting the low income market.  He wanted to help the people who had limited choices for assisted living.  Everything that he had read suggested that the assisting living was a growth industry.  He worked with “Tatge (2005)” which was the first consulted resource and it helped him understand the growth potential out there for the age group of 65 and older.  The age group was going to double they figured out in 2030 to 71.5 million.  Another great opportunity was several assisted living facilities recently opened in the local area.  The local waiting lists suggested demand for Medicaid rooms, because those facilities were setup for private with only a couple of rooms for Medicaid.  So his father-in-law had mentioned to James there is potential for further growth.

Weaknesses and Threats:  James wasn’t like the competition, he would have the same layout of rooms for all residents; but in order to keep the costs low they would have to share a bathroom.  He didn’t feel this would be a problem for the potential residents.  However the competition he was up against really was the larger facilities.  However, he was focusing on the Medicaid potential residents more than the private paying residents.  James was taking a big risk relying on the government when the policies and practices could possibly change and then there would be uncertainty that he would be reimbursed would remain at the current levels.  He felt that this wouldn’t be an issue for the government to continue support for assisted living for seniors because it offers care at a value price.