APOLLO HOSPITALS INDIA

Case Study-Service Operations Management

 Providing superior value to Customers through well
designed service system.
Breakthrough service organization, first its kind in India.

Customers :-
 Created opportunity to have quality health care in India.
 Advanced medical care with high quality and “with a human face”.
 Best consultants, best technology and supporting staff, with best of non-medical
care, high sanity standard and hospitality.
 Charged 20 to 30% less than local competitors for procedures
 Provided treatment for many medical specialties.
 Quick diagnosis & treatment.
 Offered different service products to its Customers such as Primary health,
preventive medical care (Insurance product).
Providing superior value to Shareholders through well
designed service system.
Breakthrough service organization, first its kind in India.

Shareholders :-
 Colleagues contributed to 40% of stock.
 By 1995, growth and potential of the company attracted foreign institutional
investors.
 Financial performance had not been affected by competition.
 Readiness of investor to invest.
 Achieved cost efficiencies through efficient business processes.
 Maintained employee attrition rate.
 Ventured into other services such as Primary health care and Preventive care.
 Created network of referral doctors to get more patients.
Providing superior value to Employees through well
designed service system.
Breakthrough service organization, first its kind in India.

Employees :-
 Consultants decided fee to be charged from Patients
 Consultants provided with library faculties, also were paid to attend medical
conferences abroad.
 Apollo free news letter conferred prestige on individual consultants
 Provided scope for individual growth and team-oriented culture motivated
employees to better perform.
 Apollo’s wages were 10% t 20% more than that of its competitors, also provided
additional benefits.
key elements (Basic and Integrative) of Apollo
Hospitals Madras Strategic Service Vision

 Dr. Reddy runs Apollo based in the “Five star” principles.

 To give patients the most advanced medical care possible at high quality & “with a
human face”.
 Hired top-quality doctors in all medical specialties
 Well-trained support staff, facilities & most advanced medical technology.
key Basic elements of Apollo Hospitals Madras
Strategic Service Vision

Target Market segment :-

 Individuals who could afford pay from out-of- pocket for the treatment expenses.
 Employees of corporations providing medical support to its employees.
 International patients from mainly Sri Lanka, South Asia and few from Europe and
US.

Service Concept :-
 Give patients the most advanced and best medical care all in house at high
quality with Human face.
 Differentiate with other hospitals by providing treatment for complex ailments
with high quality at lower cost with operational excellence.
 Corporate culture at every service provided.
key Basic elements of Apollo Hospitals Madras
Strategic Service Vision

Operating strategy :-
 Efficient utilization of resources.
 Effective integration of all levels of operation.
 Promotion of team spirit among employees.

Service Delivery System:-

 Consultant doctors for diagnosis and treatment.
 Medical Technology for diagnosis of ailment
 Detailed procedures for every service carried out such as HIV test for every
donated blood.
 Availability of facilities to meet peak demand.
key Integrative elements of Apollo Hospitals
Madras Strategic Service Vision

Positioning :-
 Treatment of complex ailments with high quality and proper care.

Value/Cost leveraging :-
 Increasing patient served with high availability and best utilization of resources,
reducing number of days stayed in hospital.
 Satisfied Employees for high quality service delivery.

Strategy System Integration :-

 Many specialty treatments supported by Apollo, Renowned Consultant doctors.
 Highly integrated supporting staff, Reduced average stay of patient at hospital.
 High availability of critical facilities.
Hyderabad Apollo Hospital's disappointing
performance

Commitment from Consultants :-

 Less prestigious staff of consultants.
 Consultant Worked part time with Apollo.
 Several local doctors perceived Apollo medical center as a threat.
Private Competition :-
 Private hospitals offered lower prices to the generally price-sensitive residents of
Hyderabad.
Quality of operations :-
 Hyderabad Apollo Hospital also faced criticism with the quality of its non-medical
operations.
 Unsystematic CHANGE program
Accessibility :-
 Far from heart of the city: Patients faced transportation difficulties.
Gap Model of Hyderabad Apollo Hospital.
Gap 1: Customer Gap.
 Quality doctors not available
 Private Hospitals offering lower prices.
Gap 2: Provider Gap 1.
Not Having Proper Service Quality Design and Standards.
 Criticism with the quality of its non-medical operations.
 Unsystematic CHANGE program.

Gap 3: Provider Gap 2.

Not Having Proper Service Quality Design and Standards.
 Difficulty Controlling Quality with consistency, Issue with committed full-
time doctors.
 Private Hospitals offering lower prices.

Gap 4: Provider Gap 3.

Lack of integrated service marketing communication.
 It was expected that Apollo’s name itself will pull in patients Private
Hospitals offering lower prices, Absence of strong marketing program.
Absence of customer expectation management.
 Far from heart of the city: Patients faced transportation difficulties.
what are Hyderabad Apollo
Hospital's future prospects?
Hyderabad Apollo hospital management continuously worked to address these issues by initiating
measures to build relationships with local referring doctors and some well-known consultants.

Future Prospects :-
 Even at high premium, Hyderabad Apollo could win corporate and individual
client base over a period of time.
 Improved Consultant doctors reputation and hence improved the confidence of
Patients.
 Started satellite facilities called Medical Centers within city to overcome
inaccessibility issue of Hyderabad Apollo Hospital.
 Medical Centers also provided minor surgeries and trauma care.
 Improved referral doctor network by not accepting referral patients on
permanent basis.
 Abundance of room for expansion and anticipated growth of Hyderabad city
with foreign and institutional investors.
Expansion vehicle promises to be most effective to
enhance Apollo Hospitals.

Indian Medical Corporation (IHC) :-

 Use Apollo experience and expertise to provide support to entrepreneurs to build
and manage new medical facilities through Licensing Apollo name.
 Licensing Apollo name to groups of Doctors or entrepreneurs would enable
Apollo to grow faster without having to building wholly owned subsidies.

Health Maintenance Organization (HMO) :-

 Health care to be provided to customers in return for a fixed annual premium to
prevent illness to spare itself from cost of sophisticated treatments.
 Building network of Hospitals under Apollo Brand name, will increase profitability
by effective preventive care and network of Apollo hospitals serving customers.
BLUE PRINT
ServiceScape For Apollo
 Apollo is an interpersonal services type
 Servicescape complexity of Apollo is elaborate

State of Art
Attractive building Medical
Equipment's.

Nice ambience Proficient Doctors

High Quality
Treatment with
services at
Care.
reasonable price