HEALTHCARE AND PERSONAL CARE INDUSTRY|
Mujeeb Palollathil BLR 1208 032 023
Maedeh Hedayati BLR 1208 032 033
Vishnu Prasad BLR 1208 032 022
Ajay Pratap Singh Sengar BLR 1007 036 048
Ekou Ebagnitchie Edouard BLR 1208 032 001
Table of content:
Analyzing external environment
* Environment Basics
* Degree of turbulence in the environment
* PESTEL Analysis
* Industry Life Cycle
* Key Factors For Success
* Five Forces Analysis
* External Factor Evaluation Matrix
* Competitive Profile Matrix
* Predicting industry profitability
Understanding the competitive environment is an essential part of the development of an organization’s strategy. Each company should be aware of the opportunities and threats which can they possibly come through in their run. Hence it can achieve a sustainable competitive advantage. Himalaya Corporation was established by M. Manal in 1930 in Bangalore, India. The main focus of the firm was on safe, natural, innovative remedies that will help people lead richer, healthier lives. Himalaya proclaimed that it provides pharmaceutical and personal care products (Himalaya, 2013).Healthcare industry of India is one of the largest in terms of revenue and employment. Out of the total GDP of the country, healthcare contributes more than 5%. The total value of the sector will compose of more than $34 billion and by the end of 2013; the sector is expected to grow to nearly $40 billion and in the other hand the personal care sector in India was estimated to be worth $5.6 billion in 2008, with a compound annual growth rate (CAGR) of about 11.5%during 2003 to 2008. (Monitor, 2012). Different proactive and reactive outcomes will help the company to identify opportunities and threats and develop strategy base on them and in the other hand results can show the firm the changes which it has no control , hence it should be aware of to be able to react. Different techniques have been used for such outcomes which have been attached in the appendix.
External Environment Analysis
Healthcare and personal care is a large attractive market. The growth rate of the healthcare industry in India is moving ahead neck to neck with the personal industry and the software industry of the country. The degree of turbulence can be determined as changing to discontinuous which is due to stability of Indian government environment and rapid change in social and technological environment. But still it is predictable, but companies should focus on R&D department to control this degree of turbulence (Appendix p.(7,8))
There are different opportunities that can be useful for organization in these industries such as growing population and economy, expanding middle class, rise of disease, epidemic diabetes and so on (Appendix p(18,19))
PESTEL Analysis: Healthcare and personal care demand can change due to different factors in the environment, which companies should be aware of and predict and manage a strategy base on them. Healthcare has many regulatory and legislative restrictions. In healthcare industry the introduction of discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organization’s actions. In personal care industry Industries should make sure that the products they sell in the market is safe to be used by customers and no harm caused by them. All products should be labeled with the information according to safety rules. In economic and political government decisions on pricing for healthcare services or taxation, deregulation, what services to choose, health and safety laws or reduction in disposable consumer income can shape the demand.
Social factors such as life...