Sr. Eng.
Sr. Eng.
Apollo Hospitals
A New Vision for Apollo
Positioning for Emerging-Market companies
Positioning is done after answering below questions
1- Pressures to globalize in the industry ?
Pressures to globalize are not high, most medical institutes operate in their home based countries, even Mayo clinic operate in few locations, providing health care is a product / service that used to be designed to the local needs with known standards, the industry is not providing products like aircraft engines or large networks switches that has to go global.
2- How internationally transferable Apollo’s competitive assets ?
Apollo’s competitive advantage lies in :
Low cost hospitals compared to U.S and other western companies.
Low cost wages for doctors and other administrative costs.
Brand name in the Indian Market.
Management consultancy firm that operate hospitals.
By examining carefully those advantages and reading thoroughly the case history, one can find that Apollo’s main competitive advantage lies in low cost model that works in India and other similar countries, but doesn’t work well in more developed countries were they build larger rooms in hospitals, doctors are paid larger salaries and so the rest of the administrative costs.
Brand name doesn’t constitute any significance in the rest of the world, nor the management firm when it comes to the developed countries.
One sees Apollo’s more or less like the scooter company Bajaj were they can extend to similar countries, mainly in south East Asia.
Competitive assets
Customized to home market transferable abroad
SWOT Analysis
Strengths
High Quality care at Apollo’s hospitals.
Low pricing by global standards, cardiac surgery costs 25000$ in the US vs. 6000$ at an Apollo hospital.
High wages for doctors that attracts Indians doctors who work in the US and UK to return to work at Apollo’s hospitals.
Global nursing program that delivered trained nurses in a global market that was thirty for qualified nurses.
Pharmacy network that constructed 50% of the group revenues.
Consultancy arm that provided consultancy worldwide.
Building and operating hospitals at low cost which constitute a large competitive advantage.
Weaknesses
1- Apollo hospitals are willing to expand dramatically in the hospitals management business where they don’t have enough expertise about the local markets, they want to expand in Eastern Europe when it’s a total different market than south east Asia markets.
Opportunities
Integrated health Care Delivery Networks
Developing