Case Analysis | By: Kryptonite Solutions, LTD (Group 4)
SHIMONAH ISRAEL, Sales & Innovation
ANASTASIA SHANDYGA, Accounting & Administration
INNA SHEVKOPLYAS, Growth & Finance[Gatekeeper]
YOUSSEF BENNIS, Information Systems & Technology
SHARIFUL ALAM BHUIYAN, Marketing & CRM
SHAMA ISLAM, Communications & PR
October 29, 2012
School of Business
1 University Plaza
Brooklyn, NY 11201
Dear Professor Stucke,
After analyzing all the presented data for Narayana Hrudayalaya Kryptonite Solutions, LTD came to the conclusion that the company has a great competitive advantage leading to the unique opportunity to grow worldwide. Since there were strong signs of linkages that NH uses to leverage from, the company should capitalize on that, and by exploiting strong government relations India already has with other countries in that region NH can dramatically enhance their contingency plan and create health cities in other countries like Bangladesh, Thailand, China using the same company strategy of delivering best service at affordable prices. If going to Bangladesh-they can use the Grameen network, along with other government agencies, here to maximize their reach. NH also could reconcile ties with Pakistan [NAFTA could also be a link that they could utilize]. Forming strategic alliances with other strong institutions that are renowned for their health care, like in Singapore and Bangkok will be mutually beneficial for both parties. Concluding from the fact that about 49.9 million is the number of uninsured Americans in 2010,making it 16.3% of the total population, Kryptonite Solutions suggests that NH should offer Insurance (Yeshasvini) to Americans, who often go without health insurance, but are still not as poor as the Indian poor, will dramatically increase profit margins and company’s market share. Kryptonite Solutions oversees another great expansion possibility for NH is via M&A of underutilized hospitals into the US and UK market. As a result of going into those countries highly expensive health care industry NH could make much higher profits, and still compete as the cost leader at the same time decreasing turnover rate with a better job alternative offer for their nurses for upward mobility via transfers. Organic technology expansion with tele-medicine into Africa and other poverty stricken underdeveloped nations that have minimal access to transportation is another great opportunity. Lastly, we recommend offering more underutilized services i.e. gynecology, orthopedic, general surgery while entering new markets since US and UK markets will increase this demand. Our recommendations are core and growth concentrated to provide continuing value creation, increased profit margins leading to sustained improved company’s performance and operations. Thanks,
Kryptonite Solutions, LTD.
Overall Industry Analysis
Health care industry is the eighth out of the twenty fastest growing industries, and in many countries health care is the country’s largest industry as well. With people living longer the demand for higher quality and long-term care is constantly increasing, making the industry very attractive and very competitive at the same time. Entry barriers are high (such as required high capital investment for a start up, cost and competitive advantage of mature companies over new entrants, high switching costs, low access to distribution channels) but revenues and profits can be high as well for NH if going worldwide. With growing worldwide population unfortunately enough the need of cardiac surgeries is dramatically increasing giving an opportunity for NH to grow. The bargaining power of buyers is low in India because there are not enough doctors for patients and high...