Case Study Description of Apollo Hospitals Enterprise Ltd. Clinical Score-Card
In January 2011, the group medical director of Apollo Hospitals Enterprise Ltd (AHEL), India's largest integrated healthcare provider in the private sector, is weighing his options in driving clinical excellence among group hospitals. AHEL has been using a Clinical Score Card, called ACE@25, as a tool to measure and monitor clinical excellence which is becoming a source of differentiation in Indian healthcare industry. ACE@25measures 25 clinical parameters, benchmarked with the best globally, every month. The group medical director is wondering whether his role should be limited to monitoring clinical outcomes or whether, in order to drive clinical excellence, he should also prescribe the steps that the medical supreintendents of individual hospitals should take in improving outcomes in their watch.
Swot Analysis of "Apollo Hospitals Enterprise Ltd. Clinical Score-Card" written by Murray Bryant, Chandra Sekhar Ramasastry includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Clinical Hospitals facing as an external strategic factors. Some of the topics covered in Apollo Hospitals Enterprise Ltd. Clinical Score-Card case study are - Strategic Management Strategies, Assessing performance, International business, Strategy and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Apollo Hospitals Enterprise Ltd. Clinical Score-Card casestudy better are - – digital marketing is dominated by two big players Facebook and Google, there is backlash against globalization, increasing transportation and logistics costs, increasing energy prices, increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions,
talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Apollo Hospitals Enterprise Ltd. Clinical Score-Card
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Apollo Hospitals Enterprise Ltd. Clinical Score-Card case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Clinical Hospitals, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Clinical Hospitals operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Apollo Hospitals Enterprise Ltd. Clinical Score-Card can be done for the following purposes –
1. Strategic planning using facts provided in Apollo Hospitals Enterprise Ltd. Clinical Score-Card case study
2. Improving business portfolio management of Clinical Hospitals
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Clinical Hospitals
Strengths Apollo Hospitals Enterprise Ltd. Clinical Score-Card | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Clinical Hospitals in Apollo Hospitals Enterprise Ltd. Clinical Score-Card Harvard Business Review case study are -
Strong track record of project management
– Clinical Hospitals is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Clinical Hospitals
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Clinical Hospitals does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Clinical Hospitals has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Sustainable margins compare to other players in Strategy & Execution industry
– Apollo Hospitals Enterprise Ltd. Clinical Score-Card firm has clearly differentiated products in the market place. This has enabled Clinical Hospitals to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Clinical Hospitals to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Clinical Hospitals has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Apollo Hospitals Enterprise Ltd. Clinical Score-Card HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Cross disciplinary teams
– Horizontal connected teams at the Clinical Hospitals are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Innovation driven organization
– Clinical Hospitals is one of the most innovative firm in sector. Manager in Apollo Hospitals Enterprise Ltd. Clinical Score-Card Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Clinical Hospitals in the sector have low bargaining power. Apollo Hospitals Enterprise Ltd. Clinical Score-Card has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Clinical Hospitals to manage not only supply disruptions but also source products at highly competitive prices.
Ability to lead change in Strategy & Execution field
– Clinical Hospitals is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Clinical Hospitals in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Ability to recruit top talent
– Clinical Hospitals is one of the leading recruiters in the industry. Managers in the Apollo Hospitals Enterprise Ltd. Clinical Score-Card are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Superior customer experience
– The customer experience strategy of Clinical Hospitals in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Clinical Hospitals is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Clinical Hospitals is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Apollo Hospitals Enterprise Ltd. Clinical Score-Card Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Apollo Hospitals Enterprise Ltd. Clinical Score-Card | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Apollo Hospitals Enterprise Ltd. Clinical Score-Card are -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card, it seems that the employees of Clinical Hospitals don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Workers concerns about automation
– As automation is fast increasing in the segment, Clinical Hospitals needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Apollo Hospitals Enterprise Ltd. Clinical Score-Card can leverage the sales team experience to cultivate customer relationships as Clinical Hospitals is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Clinical Hospitals is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Clinical Hospitals needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Clinical Hospitals to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Apollo Hospitals Enterprise Ltd. Clinical Score-Card HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Clinical Hospitals has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Clinical Hospitals, firm in the HBR case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card, in the dynamic environment Clinical Hospitals has struggled to respond to the nimble upstart competition. Clinical Hospitals has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Clinical Hospitals 's lucrative customers.
Slow decision making process
– As mentioned earlier in the report, Clinical Hospitals has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Clinical Hospitals even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Products dominated business model
– Even though Clinical Hospitals has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Apollo Hospitals Enterprise Ltd. Clinical Score-Card should strive to include more intangible value offerings along with its core products and services.
Lack of clear differentiation of Clinical Hospitals products
– To increase the profitability and margins on the products, Clinical Hospitals needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Apollo Hospitals Enterprise Ltd. Clinical Score-Card | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card are -
Loyalty marketing
– Clinical Hospitals has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Buying journey improvements
– Clinical Hospitals can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Apollo Hospitals Enterprise Ltd. Clinical Score-Card suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Clinical Hospitals can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Clinical Hospitals can use these opportunities to build new business models that can help the communities that Clinical Hospitals operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Leveraging digital technologies
– Clinical Hospitals can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Clinical Hospitals in the consumer business. Now Clinical Hospitals can target international markets with far fewer capital restrictions requirements than the existing system.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Clinical Hospitals to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Clinical Hospitals can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Apollo Hospitals Enterprise Ltd. Clinical Score-Card, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Better consumer reach
– The expansion of the 5G network will help Clinical Hospitals to increase its market reach. Clinical Hospitals will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Clinical Hospitals to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Clinical Hospitals to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Clinical Hospitals in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Clinical Hospitals can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Manufacturing automation
– Clinical Hospitals can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Threats Apollo Hospitals Enterprise Ltd. Clinical Score-Card External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card, Clinical Hospitals may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Clinical Hospitals.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Clinical Hospitals can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Clinical Hospitals in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Clinical Hospitals high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Clinical Hospitals business can come under increasing regulations regarding data privacy, data security, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Clinical Hospitals needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Clinical Hospitals with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Clinical Hospitals needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Clinical Hospitals can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Clinical Hospitals will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Clinical Hospitals in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Apollo Hospitals Enterprise Ltd. Clinical Score-Card Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Apollo Hospitals Enterprise Ltd. Clinical Score-Card is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Apollo Hospitals Enterprise Ltd. Clinical Score-Card is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Clinical Hospitals needs to make to build a sustainable competitive advantage.
