Wednesday, 26 October 2011

Trade off Analysis for decision makers





Philip Kotler says, Trade-off analysis explores the cost of relaxing one goal in order to achieve another goal. Explaining the diagram he says when you are making decision you have to take care about all three (from diagram) points in the mind. One can’t make product or service by satisfying all three points. It is equally applicable for healthcare. You cannot give best quality care with lowering the cost and also giving total solution to your patient. Other example, if you are looking for best quality product then it will not come in low cost, or vice-verse. Similarly, if you are looking for total solution kind of product then and also in low cost then you have to compromise with the quality. Like china made product, we all knows, they produce cheap, and low cost product but in the term of quality you can’t say any things. Look at high end BMW cars they know for their best cars with good quality but you can`t get this car with very low cost.
You have to compromise at any point out of three to achieve other goal.

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