Operating Strategy :: essays research papers

operational St come ingyApollo Hospitals, IndiaConsidering the elements of a strategic service vision, the fol lowlying are thefactors applicable to the Apollo Hospitals of India. The service visionframework are according to an exhibit from "Lessons in the Service Sector" byJames L. Heskett, Harvard Business Review, March/April 1987, p. 120.1. guide Market segments Population Statistics Population above 920 mill. people with wide kindof economic levels, social statuses, and cultures. Lowest per capita GNP $255,population growth 2% p.a. Growth real GNP 4.5%. Middle fall apart 270 mill. Wealthy30 million people. Target Market Segment Upper middle class, the wealthy, and fraternityemployees with health insurance (108 million in 1994 ). Half of the middle classable to pay for private health care. Current Market perspective Most hospitals are state run at very low cost, lowtech, and low quality. Private checkup facilities are available - extremelyspecialized, charging market rate (not latest technology but provides privacyand intimacy). treatment of a complex ailment in a private insane asylum is more(prenominal)time consuming and expensive. Economic liberalization domestic and transnational companies - morecompetition Demography urban, high income as dictated by upper middle class and eliteclass, neighboring countries. Psychography Targeting people who posterior afford comprehensive high qualityservice who are wangle to pay more money for the comfort and treatment by morereputed doctors. Market Growth (income + segments growth) Sizable market of 30 million(wealthy ) and one hundred thirty-five million upper middle class person. Proposed Plan Comprehensive hospital emphasizing on tertiary care --advance therapy and surgery, complicated medical problems. Primary care isstressed mainly through preventive measures. last quality medical care throughthe latest medical technology and the best qualified staff.2. Service Concept The aim is to provide big(p) think of to patient through superior medicalresults, quick treatment, and a low total cost of care relative to competitors.This can be achieved through the Five stars management philosophy medicalpersonnel, medical technology, employees, value and hospitality. Customers perception high quality, comprehensive service at 10-15% belowthan the eyeshade hospitals in Bombay and Delhi in a shorter time period (on average7 days versus industrys average of 9-12 days). Superior medical treatment success rate at par with highest internationalstandard, competitive total cost of care.3. operational Strategy Hospital operates under the Five Stars philosophy.1. Medical personnel passing skilled and experienced doctors mostly returningfrom western countries (well known some(prenominal) academically and clinically). Welltrained and motivated junior doctors, technicians, nurses, and other bread and butterstaff.2. Medical technology Latest available technology, constant and quick update,