Discuss the cost-flexibility tradeoff in the context of a private healthcare sector in a country? b) Discuss and also how the tradeoff can be overcome by private hospitals so that low cost and high flexibility can be achieved as shown by the off-the-diagonal position in figure 6.6.

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a) Discuss the cost-flexibility tradeoff in the context of a private healthcare sector in a country? b) Discuss and also how the tradeoff can be overcome by private hospitals so that low cost and high flexibility can be achieved as shown by the off-the-diagonal position in figure 6.6.
Figure 6.6 Market pressures are requiring operations to be both flexible
and low cost
Competitive
pressure to
reduce costs
Traditional trade-
off 'diagonal
between cost
and flexibility
The need to
overcome the
traditional cost-
flexibility trade-off
and achieve high
levels of performance
in both
Market
fragmentation
making
flexibility
Low
Cost
more
High
valuable
Flexibility
MO7
Transcribed Image Text:Figure 6.6 Market pressures are requiring operations to be both flexible and low cost Competitive pressure to reduce costs Traditional trade- off 'diagonal between cost and flexibility The need to overcome the traditional cost- flexibility trade-off and achieve high levels of performance in both Market fragmentation making flexibility Low Cost more High valuable Flexibility MO7
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