Apollo Gleneagles Hospitals: The Next Steps For Growthoeagles Case Solution


The strategy focuses on a product or a small group of products that target a specific market and invest all its resources in that particular area to get hold of the market and can lead that particular business by being consider as specialist in that particular area. There are times when company specialize in that particular course and become very successful that they start setting standards in that particular industry, and the competitors had to stay on that benchmark to stay in that business.


Along with the benefits there are various liabilities attached with the usage of concentration strategy which incorporates the risk of being so much involved in one market that any un predicted economic turn down can affect the company in such a way that it could lead to a failure. A shift in the demand due to change in technology can leave the company facing financial difficulty. The concentrated growth strategy limit diversity and companies that do not diversify themselves are often the one who are brutally hit by the economic slowdowns.

AGH need to align its growth model strategies with the changing dynamics of the industry in order to maintain its leading position in the industry, diversification is important in order to succeed in the competitive market. But it is not a piece of cake to jump from a concentrate growth strategy to a multi-location growth strategy. A transformation in the way you operate needs to be incorporated while moving towards a multi locations strategy, with expansion came different challenges.

However the company cannot work or rely on the concentrated growth model, in order to expand or grow itself it has to opt for multiple-location growth model. As, it help increase the sales opportunities by being available within the customer reach, increase brand visibility, help you understand the need of the customer and opportunities that are untapped. So far, the major competitors of AGH have also adopted this approach in order to expand its customer base by expanding its reach and making it easily accessible for the target segment. If AGH will not adopt the multi-location strategy than there is a chances that its competitor will leave the company far behind by switching the patients of AGH to their institutions by setting healthcare institutions within the customer reach and increased visibility. The model require the setup of smaller hospital chains at various locations containing 150-200 bed at each location in multiple area, offering all or selected facilities depending on the demand of the customers in that particular location.

Clinical Excellence:

The way to stay ahead of others in terms of clinical excellence in the dynamic operating environment is by providing high quality trainings, an effective clinical audit system and peer review on regular basis. Clinical excellence is highly affected by the poor overall experience of the patient’s as it is now measured on the basis of customer satisfaction. There fore it is important to make sure that the patient overall experience during his stay align with his expectation by making an attempt to provide him the personalize care and forming a communication between the patients and the professionals. The most common mistake made by the various healthcare institutions is they prefer quantity over quality that limits them from achieving clinical excellence.  Therefore AGH, to secure clinical excellence should make the clinical audit work in actual; maintaining standards of teaching; taking new initiatives in education related to nursing and medical. It should empower their patients by providing them with variety of options, respecting their time and privacy, making continuous improvement in order to provide seamless package of care and making sure that all the promises and commitments are being delivered without any unnecessary excuses and most importantly treat the staff in a manner, that you would expect from them, to treat the patients.


AGH had performed well by adopting the right strategies required, during its growth period in East India from 2003. But now the company has arrived at a point where it need to redefine its action and the growth model and strategies that were previously adopted by them, in order to maintain its position as a leader in the healthcare sector in East India, as the operating environment has become much more competitive because of the awareness among the patients and the growing competition in the industry. Now the success only is sustained by adopting the new models that have been introduced before the competitors hold a grip on it. AGH without further delay should adopt the multi-location growth model as its competitors are already ahead of it and using this model to increase their share in the market. This strategy will help them retain their customer by being easily accessible to them and on top providing them with a high standard service, meeting their expectations, all contributing towards achieving clinical excellence.........


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