Professional Documents
Culture Documents
By Group AN2
CIRCA 1983
Computers
Telephones
Internet
1 TV Channel Doordarshan
Health insurance
Surgery
Tertiary care centre
Cardiac services
Bombay
Bangalore
Calcutta
Madras
Pondicherry
Apollo
Hospitals
Touch a Billion Lives
Mission
The mission is to bring healthcare of International
standards within the reach of every individual. We
are
committed
to
the
achievement
and
HealthCare Industry
Spends 5.2% of GDP
The private medical sector remains the primary source
of health care for 70% of households in urban areas
and 63% of households in rural areas
Industry is expected to grow at CAGR 17%
Per capita Healthcare Expenditure to grow at CAGR
15.4%
COMPETITORS
Manipal Group
Fortis Health
Care
11 Private
7 government
Affiliated
6000 beds
4 hospitals
10 over next 5
years
600 beds
4000 in next 5
Lanka Hospitals
Apollo Pharmacy
Apollo Pharmacy is the medical
store chain of Apollo Hospitals
Enterprises Ltd
Whats new?
Plans to launch a pharmacy format thats more than
double the size of the existing 350 sq. ft model.
Expansion and
competitions
Aim is to maximize
convenience and comfort
Is an integrated model and
offers facilities for
Specialist Consultation
Indian Competitors
Core Diagnostics
Private Limited
SRL Limited
DaVita Care
(India)
Indian
Competitors
Diagnostics
Pvt. Ltd.
Sarvodaya Global
Limited
SWOT
STRENGTHS
Cost Advantage
Provides primary,
secondary and tertiary
health care services
Quality health care
Brand Image
Talented professionals
Integrated health care
services
High Asset utilization
JCI Accreditations
WEAKNESS
Less
pay
compared
to
international competitors
High attrition rates among
nursing workforce
Lack of infrastructure for
medical tourism
Rising cost of health care
delivery
Perception
operations
as
high-end
OPPORTUNITIES
Growth
of
Health
care
industry in India
Two
third
of
healthcare
occurs
outside hospitals
of
to
skilled
other
countries
Competition from domestic
players
market
Health insurance
National
Migration
technicians
expenditure
Unexplored
THREATS
as
global
&
International
Government Regulations
HEALTH MAINTAINANCE
ORGANISATION
Anorganizationthat
Provides
or
arranges
managed
care
forhealthinsurance
Self-funded healthcare benefit plans
Acts as a liaison withhealthcare providers on a prepaid
New field to venture
basis.
Scope for development in Insurance sector
PORTER'S FIVE
FORCES
Threat Of New
Entrants
barriers
of
investment funding
entry,
easy
Threat Of Existing
Competition
Price competition
Easy investment available
Low pool of talented doctors,
so increase in rivalry will
increase charges of the
doctors
Scope of Public private
partnerships
Threat of
Substitutes
A basic requirement
Facilities in other countries
Threat of Suppliers
Threat Of
Buyers
Huge initial
investment
High returns
Huge untapped
market
Brand Name to
facilitate the sales
Customers easily
available
Every customer
stepping in can be
a prospective
insurance taker
As a
complementary it
will help the
Building and
running whollyowned hospitals
Huge
investment
Slow process
Huge untapped
market
Facilitates entry
of new
competition
Resources
availability near
the center
Full fledged
facility to be
developed from
scratch
Less investment
involved
A Faster process
Resources already
at place, mere
improvements
required
Facilities to be
streamlined in the
right direction as
they already do in
their consulting
wing though deign
and workforce
facilities
Additional
EMPLOYEES
EMPLOYEES
CUSTOMERS
CUSTOMERS
Superior
Superior results,
results, quick
quick
treatment
treatment &
& low
low cost.
cost.
Foreign
Foreign trained
trained
doctors
doctors
High
High Success
Success rate
rate of
of
surgeries
surgeries
State
State of
of Art
Art
Innovative
Innovative techniques
techniques
Training
Training facilities
facilities
Computer
Computer &Grooming
&Grooming
Skills
Skills
Decentralised
Decentralised
Management
Management
Good
Good rapport
rapport with
with Top
Top
management
management
Apollo
Hospit
al
(Madra
s)
SHAREHOLDERS
SHAREHOLDERS
CAGR
CAGR of
of 16%
16% from
from
2000-04
2000-04
Value
Value was
was Rs
Rs 13.6
13.6 bn.
bn.
in
in 2004
2004
Focus
Focus for
for D/E
D/E Ratio
Ratio of
of
1
1
Share
Share of
of 14%
14% in
in
tertiary
tertiary and
and 35%
35% in
in
Private
Private care
care
Above
Above average
average
operating
operating profit
profit
Market segmentation
Cost/Product Differentiation
Operations
Service Sectors
Market Segmentation
Increase penetration in
insurance(%)
Middle to upper income
patients
Ageing Population
Working Population
Cost/Product Differentiation
Operations
Stringent quality
norms and protocols
Strong Execution
Strategy
Acumen to match
care demand and
market gaps with
creation of assets
Long term relationships with medical professionals
Service Sectors
To enhance patient experience and value
End to end offerings
Primary
Secondary
Tertiary
FUTURE PROSPECTS
More Globalization
Infrastructure Improvement
Transportation Facilities
Advertise as centre for International
Tourism
Acquire international projects
Train doctors and manpower
STRENGTHS
Integrated
International
Health Care
Hospital
Delivery
Management
Medical Tourism
Network
Already Ventured
Experience in
Cost Advantage
managing
hospitals
Consumer Trust
Cost leadership
Expertise in this
business
Some of the
Integrated service
Superior Skills
primary care
is provided
compared to
WEAKNESS
Integrated
International
Health Care
Hospital
Delivery Network
Management
Some of the
Contributes only
Weak competitive
2.4% of revenues
position in India vs
doing good
Medical Tourism
countries like
Thailand
Profitability issues
Most of the
differences
patients are
domestic
OPPORTUNITIES
Integrated Health
International
Medical tourism
care delivery
hospital
network
management
Opens up to
Revenue is
care expenditure
European Markets
expected to be at
happens outside
Hospitals
dollars
Compliments
International
Huge cost
pharmacy vice
Presence
versa
Helps in up selling
availability
Can grow as a
Effective utilization
Global Brand
of existing
infrastructure
Referral networks
First Mover
THREATS
Integrated
International
Health Care
Hospital
Delivery
Management
Medical Tourism
Network
Franchise model
Requires to hire
International
may not be
competition
successful
language
Tough competition
Local
practices
Infrastructure
Millions of
Threat of loosing
physicians
coat advantage
operating