Operation Analysis of Apollo Hospitals, India Essay

This essay has a total of 1135 words and 7 pages.

Operation Analysis of Apollo Hospitals, India

Apollo Hospitals, India

Considering the elements of a strategic service vision, the following are the factors
applicable to the Apollo Hospitals of India. The service vision framework are according to
an exhibit from "Lessons in the Service Sector" by James L. Heskett, Harvard Business
Review, March/April 1987, p. 120.

1. Target Market segments
· Population Statistics : Population above 920 mill. people with wide variety of
economic levels, social statuses, and cultures. Lowest per capita GNP $255, population
growth 2% p.a. Growth real GNP 4.5%. Middle class 270 mill. Wealthy 30 million people.

· Target Market Segment : Upper middle class, the wealthy, and company employees with
health insurance (108 million in 1994 ). Half of the middle class able to pay for private
health care.

· Current Market Status : Most hospitals are state run at very low cost, low tech, and
low quality. Private medical facilities are available - highly specialized, charging
market rate (not latest technology but provides privacy and intimacy). Treatment of a
complex ailment in a private institution is more time consuming and expensive.

· Economic liberalization : domestic and multinational companies - more competition
· Demography : urban, high income as dictated by upper middle class and elite class, neighboring countries.
· Psychography : Targeting people who can afford comprehensive high quality service; who
are ready to pay more money for the comfort and treatment by more reputed doctors.

· Market Growth (income segments growth) : Sizable market of 30 million (wealthy ) and
135 million upper middle class person.

· Proposed Plan : Comprehensive hospital emphasizing on tertiary care -- advance therapy
and surgery, complicated medical problems. Primary care is stressed mainly through
preventive measures. High quality medical care through the latest medical technology and
the best qualified staff.

2. Service Concept
· The aim is to provide outstanding value to patient through superior medical results,
quick treatment, and a low total cost of care relative to competitors. This can be
achieved through the Five stars management philosophy : medical personnel, medical
technology, employees, value and hospitality.

· Customers' perception : high quality, comprehensive service at 10-15% below than the top
hospitals in Bombay and Delhi in a shorter time period (on average 7 days versus
industry's average of 9-12 days).

· Superior medical treatment: success rate at par with highest international standard, competitive total cost of care.

3. Operating Strategy
· Hospital operates under the Five Stars philosophy.
1. Medical personnel : Highly skilled and experienced doctors mostly returning from
western countries (well known both academically and clinically). Well trained and
motivated junior doctors, technicians, nurses, and other supporting staff.

2. Medical technology: Latest available technology, constant and quick update, high
utilization and availability. Large capital investment emphasis in this area.

3. Employees: Constant interaction between all levels. The environment promotes a sense of
family/community. Upper management recognizes attendance, punctuality, achievements in
sport, and honesty through awards. A 10-20% higher wage for the employees than local,
private hospitals. Flexible atmosphere, free medical care, and other economic benefits
(loan, wedding gift, subsidize meals) attract competent employees.

4. Hospitality : Customer oriented/centered service, 30 hrs/year training, well
Continues for 4 more pages >>

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