Critical analysis of

Apollo Hospitals
GROUP – 5
UM1908O AISORYA CHOUDHURY
UM19085 AKASH KUMAR
UM19112 PIYUS TRIPATHY
UM19128 SATYAJEET LENKA
UM19130 SATYAM DASH
INTRODUCTION
• “My vision is to develop the large pool of talent in
India. Health care could be the single biggest
employer in the country and a resource to the
world. Patients will come from everywhere to
India for advanced health care. We enjoy a huge
cost advantage. But more importantly, our culture
is very compassionate. India is now in a position
to give patients the best of the East and the West
– compassion and advanced medical technology.”
– Dr. Prathap C Reddy
Jan , 2005
 STRENGTHS as of 2005

Doctors – 1000+ Staff – 10000+

Two thirds of physicians were Indians who had returned home from
careers in the United States and Great Britain
33 Hospitals 6400 beds
Revenue – 6621 million Rupees
14% market share in tertiary health care
35% market share in private health care
STRATEGIC OPPORTUNITIES
What is Medical Tourism?
Medical tourism — the phenomenon in which hospitals in
emerging markets offer “sun, sand and surgery” at low
prices to patients from other countries.
Usually referred to those who traveled from less-developed
countries to major medical centers in highly developed
countries for treatment unavailable at home. However, it
can also be referred to those from developed countries who
travel to developing countries for lower-priced medical
treatments

WHY?

 Significant difference in cost & quality

 Projections of revenue 1.1 – 2.2 billion by 2012
 20 million Indian diaspora can combine home visit with
treatment
 Countries with rationed healthcare
 Legions of uninsured people
 Neighbouring countries with poor healthcare
STRATEGIC ISSUE

How to attract customers from various countries?

Whether to use a push or pull strategy

How to schedule their appointments and arrange consultation?

Whether to use direct appointments through internet or use third party travel agencies

How to ease travel for patients who come for high end critical
cardiology and oncology work?
Work on strategy that smoothen out that process — so that our patients don’t have to
spend 12 to 14 hours in Immigration and Customs

How to add the extra factor for a treatment in India?

Probable way to add yoga and Ayurveda when required.
 PESTEL ANALYSIS
Political
• Relatively inconsistent policies with Technological
changing governments.
• Threat of terrorist attacks P T • Infrastructure to facilitate
• Restrictions in FDI • Mode of payment

Economy
Environmental
• Increasing number of hospitals
• Standards & regulations
will generate more employment in
• Careful disposal of
the areas it operates in.
• Increase in Tourism revenue
E E harmful medical waste.
• Inadaptability to
country’s climate

Social
• Barrier to incoming patients Legal
from Muslim dominant
countries S L • Facilitation of Travel & onboarding
• Laws regarding Restrictive Trade
• Cultural Barrier
Practices
• Accidents during travel
Porter’s 5 forces
Threat of new entrants Threat of substitutes
 Countries like Singapore and
 Huge investment Malaysia already have well
 Large players like Fortis, Manipal established market with high
Eyeing for the same frequency flights
Competitive rivalry
 Would be first in the country,
currently no other players

Bargaining power of suppliers Bargaining power of customers

 Moderate for Travel & insurance  Low because we excel in quality at

agents a cheap cost.
 High for doctors as they are paid
very well in other countries
THANK YOU