Herrera founded 1-800 Autopsy to address the need for private autopsies. As his business grew, he faced increasing competition and a shortage of skilled technicians. To protect his business and maintain quality, he decided to franchise operations and set training and certification standards for technicians. By franchising and requiring certifications, Herrera created barriers to entry that helped maintain his competitive advantage in the private autopsy industry.
Herrera founded 1-800 Autopsy to address the need for private autopsies. As his business grew, he faced increasing competition and a shortage of skilled technicians. To protect his business and maintain quality, he decided to franchise operations and set training and certification standards for technicians. By franchising and requiring certifications, Herrera created barriers to entry that helped maintain his competitive advantage in the private autopsy industry.
Herrera founded 1-800 Autopsy to address the need for private autopsies. As his business grew, he faced increasing competition and a shortage of skilled technicians. To protect his business and maintain quality, he decided to franchise operations and set training and certification standards for technicians. By franchising and requiring certifications, Herrera created barriers to entry that helped maintain his competitive advantage in the private autopsy industry.
Herrera founded 1-800 Autopsy to address the need for private autopsies. As his business grew, he faced increasing competition and a shortage of skilled technicians. To protect his business and maintain quality, he decided to franchise operations and set training and certification standards for technicians. By franchising and requiring certifications, Herrera created barriers to entry that helped maintain his competitive advantage in the private autopsy industry.
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1-800-AUSTOPSY: GIVING THE DEAD A VOICE
I. EXECUTIVE SUMMMARY
“ The deceased must be protected and given a voice.” That is the motto of Vidal Herrera, the founder of 1-800 Autopsy, a company that pioneered the private autopsy business.
Herrera is a true American Entrepreneur. He identified the need for a business and went about starting it on his own, with own knowledge and know-how. Growing up in poverty in East Los Angeles, he learned at an early age that no one was going to support him financially and that the only way to get ahead in life was to boldly go out into the world and make it happen yourself.
Starting at the very bottom of the industry as a diener, he spent many years working under qualified pathologists in the Los Angeles area, learning the trade of performing autopsies. He learned that the industry didn’t have enough technicians to perform the amount of autopsies requested, and also that the hospitals themselves were very reluctant to perform a lot of them due to legal ramifications. After getting injured on the job and being unable to continue working in the field for a period of time, he decided to branch out on his own and explore the possibility of starting his own autopsy business.
Because of growing popularity of 1-800 numbers, he named the business 1-800 Autopsy. This attracted a lot of attendance for his growing business. Soon, families began calling for opinions or re-autopsy. The industry continues to experience an annual growth rate that results to a higher demand of private autopsy. Because of high demand, Herrera led the idea to franchise so that the business could grow more quickly.
II. PROBLEM ANALYSIS AND EVALUATION
Pressure on profit margins
In the case of 1-800 Autopsy, the costs of laboratory related supplies increase. Between these rising costs and growing competition many businesses are experiencing significant margin pressure, which is eroding profits. Shortage of skilled technicians
Employment projections data for forensic science
technicians, 2016-26 Occupational Title Forensic Science Technician Employment, 2016 15,400 Projected Employment 18,000 Percentage Change 2016-26 17 Numeric Change 2016-26 2,600 SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program Employment of forensic science technicians is projected to grow 17 percent from 2016 to 2026, much faster than the average for all occupations. However, because it is a small occupation, the fast growth will result in only about 2,600 new jobs over the 10-year period. Furthermore, State and local governments are the ones who hire most of those technicians so as a result, there is a shortage of skilled technicians work in the private autopsy companies. There are no certification bodies for autopsy technicians A congressionally mandated report from the National Research Council finds serious deficiencies in the U.S. forensic science system and calls for major reforms and new research. Rigorous and mandatory certification programs for forensic scientists are currently lacking, the report says, as are strong standards and protocols for analyzing and reporting on evidence. According to U.S Labor and Statistics, autopsy technicians have voluntary certification. Voluntary certification is a credential that professional associations grant to individuals who have demonstrated a certain level of competence in an occupation or industry. After applying for this qualification, she or he may also have to pass an exam.
Competition in the business arises
The industry is fragmented with a growing number of small service companies. Barriers to entry for those trained in pathology are relatively moderate, and the only requirement is that an MD supervise the autopsy. That causes the increase of business of the same industry.
The demand was huge but they do not have enough capacity. According to the United Nations World Population Prospects report, approximately 7,452 people die every day in the United States. In other words, a person dies in the US approximately every 12 seconds. With the increasing rate of death, the demand in autopsy also increases. Many people wanted to do autopsy to know the real cause of death of their love ones. However, Herrera chooses to turn down some of them especially when the autopsy is unnecessary.
III. IDENTIFICATION OF THE MAIN PROBLEM
How can he make the entry of the competitors in the autopsy business more difficult? / How can he put a higher barrier on the entry of competitors in the autopsy business?
IV. ALTERNATIVE COURSES OF ACTION
In order to make the entry of more competitors in autopsy business, 1-800 Autopsy should create some barriers.
Preemptive Deterrence One way to hold off competitors is to engage customers such that switching becomes a less viable or desirable option. This can be achieved through the creation of strong brand loyalty, strong market visibility, special benefits or promotions, or some form of memberships of contracts that need to be completed. These strategies may warrant price drops or special offers from a new entrant which will be at the cost of profit margins and may end up discouraging entry into the market.
Create and maintain competitive advantage
One of the competitive advantage of 1-800 autopsy is that its founder, Vidal Herrera is already known. He was profiled in dozens of publications. Through this, new entrants cannot enter the market easily. They cannot get higher demand because of already established 1-800 Autopsy.
Focus on the goal
The main goal of 1-800 autopsy is to protect and give a voice to the dead. Families decide to do autopsy to the dead in order for them to know the cause of death. Many crimes today are easy to be done but difficult to reveal. Autopsy is a big help to know the truth.
Set standards and controls for quality and performance through proper training and lecture. Because of the growing business, Herrera started franchising out in the market. But the risk is that it didn’t meet the quality and performance. So, proper training is one way to enhance the technical skills of workers.
Certification should be mandatory for forensic science professionals.
Currently, there is a growing number of small service companies in the autopsy industry. It is because the barriers to enter the said business is moderate. There is no certification for those technicians who perform autopsy. The only requirement is that an MD supervise the autopsy. If the certification is mandatory, entrepreneurs cannot put up autopsy businesses easily.
V. RECOMMENDED COURSE OF ACTION
Herrera’s idea of franchising is a good way for the business to grow. This is one of the barriers for the new entrants to enter the autopsy industry. Through franchising, 1-800 Autopsy can cope up with the increasing number of demand of autopsy. However, there is a risk in franchising. The risk of not meeting the standard and control of quality and performance. Controls to the franchisees will protect the name of business. That is why we recommend to set standards and proper trainings to those technicians who perform autopsy. Certification should be mandatory. In addition to trainings, Technicians typically need a bachelor's degree in science such as biology, chemistry, or physics. In this way, the company can set up standards and they can give precise, reliable, and timely results of autopsy. In addition, competitors cannot enter the market easily.
VI. PLAN OF ACTION
Herrera provided different kinds of services to satisfy the needs of his clients. From having an autopsy business, he also sold t-shirts, brain gelatin mold, and coffin purses. He also promoted the donation of tissues and organs for research. He even made Tamales, which is a Mexican food, that is packed in miniature coffins. He also made coffin couches. He focused and gave significance on the autopsy and donation of tissues and organs. He has great strategies that is why the business continues to growing. We recommend that as competition arises, he should continue to use the same strategy to make his business unique. His business must also operate for 24 hours and hire additional staffs and technicians. Moreover, the former embalmers and other technicians should be trained well and get some certification and accreditation in order to maintain competitiveness. Lastly, opening up a website containing information about their mission, the services they offer, and their contact information can make their business more accessible to clients. 1-800 AUTOPSY: GIVING THE DEAD A VOICE
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