Castlerock can choose to implement five different strategies for competitive advantage. First, to take advantage of the network of referrals, he can establish a formal network with the other veterinarians. The practice could then keep more patients within the network, and different practices could specialize in their own procedures. McFarland could then profit from referrals that he returns to their home veterinarian, since he would gain profits from all patient visits within the network. Second, he can retain some of his best interns, or "baby docs," as partners in the business by changing their lower income status to one that reflects their contribution to the business. He can still use interns as a low-cost source of labor but will add other areas of expertise like Lisa's to the business. Third, the extensive computer upgrades McFarland has invested in can be leveraged to provide close interaction among the network veterinary practices so that the entire network would have access to the same customer information. Fourth, the computers could also be used to maintain more extensive information on customers and to generate reports identifying customer profiles and tracking customer demographics. To accomplish this, the software would have to be upgraded to a version that can be integrated with Microsoft products. This will allow him to target his marketing and services to his market. Fifth, McFarland could also use the computers to launch a Castlerock web site that markets the network and details the locations of its member practices, as well as the specialties each one has. The web site would lend greater online and offline presence to the network and could be used to advantage in conjunction with the upgraded software to provide innovations such as online appointment management across practices. For example, the system could tell a prospective customer that while Dr. McFarland cannot see her dog until Tuesday; another ve...