Strategic Management Process in a Stagnant Industry Case Study by Nicky

This is a case study of the management processes of Brookdale's Senior Living.
# 150846 | 1,108 words | 7 sources | APA | 2012 | US
Published on Apr 26, 2012 in Business (Management) , Business (General)

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This case study provides an overview of the company Brookdale's Senior Living. The main focus of this piece is to analyze how this company is part of the assisted living industry and how they manage their facilities despite a stagnant industry. Using business tools and theories, such as porter's five forces, this study breakdowns many pieces to the industries puzzle. The writer concludes that their ability to consolidate will place some challenges on the company, but will provide an overall better gain in the long term.

From the Paper:

"There is a high threat of substitutes. In addition to the myriad of segments within the continuing care industry (assisted living, independent living, nursing homes), there is also a significant threat from seniors who wish to continue living at home. Indeed, the recent collapse of the housing market has compelled many seniors to delay selling their home, which in turn has caused a slump in the assisted living industry (Grimes, 2008). Complicating the issue is the high degree of turnover in some segments of assisted living. New customers must constantly be attracted as older ones either pass away or move on to other types of continuing care.
"There is low intensity of rivalry at present in the assisted living industry. The industry is highly-fragmented (low concentration) and there are fairly low barriers to exit, primarily due to relatively low fixed costs. The industry has been growing rapidly as the baby boom generation begins to enter its senior years, fuelling demand within the industry. At present, there is some overcapacity, but well-run and well-located facilities operate at over 95% capacity (ALFA, 2009). There is some diversity of rivals, but the growing market and multitude of players means that firms seldom compete against each other, but are focused more on internal efforts to boost revenues and cut costs."

Sample of Sources Used:

  • Brookdale Senior Living website. Retrieved September 24, 2009 from
  • No author. (2007). Porter's Five Forces. Retrieved September 24, 2009 from
  • Brookfield financial data from MSN Moneycentral. Retrieved September 24, 2009 from
  • Emeritus financial data from MSN Moneycentral. Retrieved September 24, 2009 from
  • No author. (2009). Comprehensive Assisted Living Data Released. Assisted Living Federation of America. Retrieved September 24, 2009 from

Cite this Case Study:

APA Format

Strategic Management Process in a Stagnant Industry (2012, April 26) Retrieved February 23, 2024, from

MLA Format

"Strategic Management Process in a Stagnant Industry" 26 April 2012. Web. 23 February. 2024. <>