Establishing a market niche: the case of Keystrox

Medical transcription as an industry has been facing many challenges including shrinking work volumes which can be attributed to the adoption of technological innovations such as Speech Recognition and Electronic Health Records. This case study illustrates how Keystrox, an international new venture in the medical transcription industry, has carved a niche market which has remained lucrative and well paying despite the downturn and competitive pressures in the transcription industry. Keystrox, after starting up as a general transcription company, has evolved into a highly profitable company by focusing its resources to fulfilling transcription needs of physicians who conduct independent medical examinations (IMEs). This focus has allowed the company to establish a niche market for itself, and grow in a hyper-competitive industry with razor thin margins. The case also demonstrates how start-ups like Keystrox can continue to grow and successfully negate some of the potential impact of shrinking work volumes in the industry by moving up-market and providing additional value added services to their clients.