This report will give you a brief insight about the AHG expansion plan. It focuses on their internal & external environments. As Apollo Hospital’s founder vision was to take healthcare to the distant corners of India through his dream project, ‘The Apollo Clinic’. The Apollo group has incorporated it as its long term vision and they found a platform where they can continue with there vision as well as counter the competitors and explore the potential markets.
The problem with the AHG is that they have a huge opportunity to expand. They all the possible resources which is required for the expansion; however they have small collective issues of communication with respect to the individuals, communication and strategic alliance with the local nursing homes, doctors & medical professional. They have also a resistance from the AHG employees about the expansion plan adopted by the company as they feel the in patient care should not be wiped out as it is their core strength.
They should be focused on their long term objective by reaching out to the individuals located in the distant corners of India which will in turn fulfilling the short term objective of their expansion and counter competition.
To fulfill the organization objectives they have to take the action plan of having a effective communication plan (Marketing & Advertisement) which clearly states the role of Franchisee and Franchiser. The communication role should be shared by both of the units. The concerns of the employees should be addresses as soon as possible.
Case: Apollo Clinic
Facts and inferences of the case:
1.The Apollo Group India’s first corporate hospital, pioneer in multi-specialty hospital, largest for-profit hospital chain in South Asia in 2000
A profit making hospital chain.
2.Vision of Dr. Prathap Reddy (Founder of the AHG) to take healthcare to the distant corners of India through his dream project, ‘The Apollo Clinic’Vision of the company 3.Company’s turnover of Rs. 2780 million in March 2000, with a capacity of nearly 3000 beds in over 25 owned/managed multi-specialty hospitals.Insight about the company’s financials and infrastructure 4.Apollo’s success was because of the well know consultants, state-of-the-art facilities, excellent industry average compensation schemes, well focused on customer service.Core strengths of the company for their success in the sector. 5.Apollo’s success model attracts other potential entrants in the sector & also the changes in government’s FDI policy in the sector.Competition for Apollo Group in India by local and international players in the sector. 6.Apollo ventures into the new areas of the healthcare delivery by staring Telemedicine facilities, Web portal healthcare services, Educational website, setting up over 100 pharmacies, Strategic alliances with IOC for setting up pharmacies in the selected petrol stations Counter the competition and to be the market leader.
7.Focused was given on setting up over 250 Apollo clinics over 100 cities/towns.Wants to cater the primary healthcare sector which is relatively unexplored and high potential market with fragmented competition and the customer service was given the less importance. 8.They want to adopt Franchisee model to expand their business.Due to of their expertise in the healthcare domain, having enough capital, high Brand equity they want to adopt franchisee model. 9.They want to setup a non hospital like ambience, uncompromising on clinical standards with a reasonable cost.Customer service was there primary focus as that was there strengths. 10.Want to have In house and visiting consultants based on the service required. 11.Want to setup in house modern diagnostic centre and pharmacy 12.Clinic will setup in a leased premises and the total project will cost around Rs. 2 Crores. 13.Debt-equity Ratio will be 1:1.
14.Company will generate annual revenues of about Rs. 2 Crores...