Apollo Hospital of India (a)

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Apollo’s greatest strength is the first mover advantage. They were among the pioneers in setting up quality private hospitals in India. Since they were able to provide world class medical service at affordable rates, this became a value for customers. Government also helped them eventually by getting rid of many financial and regulatory obstacles. Liberalization of private sector was a boon. Apollo were good pay masters as far India was concerned and this enabled them to attract talent. Doctors who wanted to come back to their country of origin were more than happy to join Apollo. The hospital imported latest equipments and had a good success rate. By using sound marketing, they were able to build a brand name very quickly. The successful surgery of Vice-President of India was a major break through for them in brand building. India’s growing middle class were the target segment for Apollo Hospitals. The patients were ready to pay for quality treatment and this segment was growing at more than 8%. Also they had little or no competition in Chennai especially from the poorly managed Government hospitals.

Apollo was started by a visionary and entrepreneur. The management had a very good leadership team and this was also an advantage for the group.

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One of the key reasons for Apollo’s growth was the five star philosophy, a concept which was nurtured by the founder. Apollo hired top quality doctors and provided them with the training and technology. This right environment was essential for the success of the hospital. Employees and Staff were also as important as the doctors. Above all, Apollo made sure that they deliver value to the customer. Patients were given the hospitality they expected from a premium hospital.

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There were major reasons for the slow development of Hyderabad facility compared to Chennai. Chennai was started by the founder and the expectations were low. There was little or no competition and there they were able to get the...
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