STRATEGIC MANAGEMENT OF NARAYANA HRUDRALAYA
Download as PPTX, PDF4 likes3,428 views
Narayana Hrudayalaya is a multi-specialty hospital chain based in Bengaluru, India, founded by Dr. Devi Shetty in 2000, and aims to provide high-quality, affordable healthcare globally. The organization has grown to include 23 hospitals and specializes in various medical services including cardiology and oncology, all underpinned by a mission of 'icare' values. Financially, the healthcare industry is projected to grow significantly, and Narayana seeks to expand its market presence through targeted strategies in North and Western India.
STRATEGIC MANAGEMENT OF NARAYANA HRUDRALAYA
- 2. CONTENT Organisational structure Organisation Portfolio Internal analysis External analysis Financial analysis Recommended strategies
- 4. Narayana Health is a chain of multi- specialty hospitals, heart centers and primary care facilities with its headquarters in Bengaluru, India. Founded by Dr. Devi Shetty in 2000. The first facility in Bengaluru with 225 beds and has grown to 23 hospitals, 7 heart centers, 19 primary care facilities across India and an international hospital in the Cayman Islands. The group now features over 6,000 operational beds.
- 7. BOARD OF DIRECTORS Dr. Devi Prasad Shetty Chairman & Executive Director Dr. Ashutosh Raghuvanshi Vice Chairman, Managing Director & Group CEO Mr. Viren Shetty Executive Director Mr. Dinesh Krishna Swamy Independent Director Ms. Kiran Mazumdar Shaw Non-Executive Director Mr. Arun Seth Independent Director Mr. Muthuraman Balasubramanian Independent Director
- 8. MANAGEMENT Dr. Ashutosh Raghuvanshi Vice Chairman, Managing Director & Group CEO Dr. Emmanuel Rupert Group Director - Medical Services Mr. Sumanta Ray Chief Marketing Officer Mr. Srikanth Raman Head Internal Audit Mr. Kumar K V Group Head- Information Technology Mr. Nagarajan Anantharaman Senior Vice-President Finance Mr. Debangshu Sarkar Head - Business Development & Investor Relations
- 9. “ ” To provide high quality and affordable health care for masses worldwide with care and compassion on a large scale. OUR VISION
- 10. OUR MISSION Our mission is to deliver high quality, affordable healthcare services to the broader population in India. Our core values are represented by the acronym "iCare", which encompasses innovation and efficiency, Compassionate care, Accountability, Respect for all, and Excellence as a culture. At the same time, we seek to generate a strong financial performance and deliver long-term value to our shareholders through the execution of our business strategy
- 11. MEDICAL SERVICES CARDIOLOGY ELECTROPHYSIOLOGY AND PACING PULMONOLOGY NEPHROLOGY PAEDIATRICS RADIATION ONCOLOGY CRITICAL CARE MEDICINE FAMILY MEDICINE RHEUMATOLOGY ENDOCRINOLOGY& DIABETOLOGY ORTHOPEDICS DENTAL GENERAL MEDICINE MEDICAL GASTROENTEROLOGY MEDICAL ONCOLOGY CANCER CARE DERMATOLOGY HEMATOLOGY NEUROLOGY PSYCHIATRY AND PSYCHOLOGY ONCOLOGY PAIN AND PALLIATION
- 12. DIAGNOSTICS AND SUPPORT Anesthesia Nutrition and dietics Blood banks Physiotherapy Imaging and radiology Yoga Laboratory medicine and nuclear medicine
- 13. OUR PROCEDURES
- 15. THREE CIRCLE ANALYSIS G. WHITE SPACE A. points Of difference E. Our dis equity / Potential equity B. Points of parity C. Points of difference F. Their dis equity/ Potential equity D. Common Dis equity / Potential equity
- 16. CIRCLE E- COMPANY’S OFFERING Proven centre of excellence in cardiac and renal sciences. Focus on becoming a true PAN- India healthcare provider. Patient well-being- the centrepiece of the group vision. Accomplish the highest degree of surgical precision possible. Digitising Healthcare, touching lives (social mobile analytics and cloud). Growing contribution of international patients through Telemedicine network. Asset light model. Concentrated in South India; especially Bangalore/ Karnataka. Emergence of new players- IHH strengthening Fortis etc.
- 17. CIRCLE G- CUSTOMERS NEEDS Utilisation rate of hospital services. Length of ‘promise gap’. Balance between technology and human touch. Lack of awareness among people. CIRCLE F- COMPETITORS OFFERING Major competitors are Apollo, Fortis and Max. Accessible from almost every major area of country. Strong social media presence. CSR initiatives for the welfare of society. World class specialist doctors for every service.
- 18. CIRCLE A- COMPETITOR’S POINT OF DIFFERENCE Easily accessible from every part of country. More focus on social media presence. Strong brand identity. Optimum utilization of capital. Profitability is preferred over affordability. CIRCLE C- COMPANY’S POINT OF DIFFERENCE International patient network. Telemedicine to serve distant rural areas and countries like Malaysia and Pakistan. Strong footing on the financial paddle. World’s largest Paediatric cardiac sciences program. Very low cost of diagnostic services; 23 surgeries a day; heart surgery for Rs 45000. Brand name. Progressing with a purpose.
- 19. CIRCLE D- COMMON OFFERING Digitising healthcare. Emerging competition. Quality of patient services. Innovative technologies for better treatment and patient satisfaction. CIRCLE B- POINT OF PARITY Brand name. CSR initiatives for society well- being. Innovation and efficiency. Multispecialty services for patients. Accreditations with NABH and JCI i.e, Quality of care. Academics and research.
- 21. • Competitors • Creditors • Customers • Suppliers • Labour OPERATIONAL • Entry barrier • Supplier power • Buyer power • Substitute availability • Competitive rivalry INDUSTRY • Political • Economic • Social • Technological • Ecological REMOTE
- 22. EXTERNAL ANALYSIS Hospital industry is a capital intensive industry with a high entry barrier. Supplier concentration in South India, Mumbai region and NCR. North, west and Central India is an opportunity for large and efficient healthcare players. Government policies and growth of insurance industry also favours the same. Ample headspace available for the growth of hospitals like Narayana (Avg. bed availability of 0.8 against WHO standards of 4/1000).
- 23. Bargaining power stays with credible healthcare providers- NH believes in low cost healthcare. Only a few players enjoy ‘strong & credible ‘ brand identity. Healthcare industry expected to grow atv16-17% CAGR – expected to touch US $ 372billion by 2022. Healthcare industry witnessing 22-25% growth in medical tourism. Regulatory interventions like cap on prices of products. CONTD.
- 24. Increase in prosperity and affordability levels. Demand for quality healthcare is rising. Increasing Urbanization Rise in insurance penetration Increase in expenditure on healthcare by govt. – Ayushmann Bharat Rise in lifestyle diseases. CONTD.
- 26. FINANCIAL RATIOS NARYANA APOLLO SHALBY FORTIS BASIC EPS (Rs.) 2.53 8.44 3.95 -19.46 Net profit margin (%) 2.45 0.71 11.17 -21.65 Return on Assets (%) 2.02 1.36 4.42 -11.70 Total debt/ Equity 0.71 1.02 0.12 0.34 Current ratio(%) 0.94 1.42 2.02 0.60 Asset turnover ratio (%) 89.95 95.71 39.43 52.89 Enterprise Value (cr.) 6,393.47 17,802.39 2,182.04 8,836.21
- 28. Increase presence in North and Western India. Balance out between low cost and quality healthcare. Engage government to rationalize cost of surgeries under Ayushman Bharat in coordination with industry bodies. Market the company well to attract medical tourists. De-risk revenue generation by focusing on revenue growth in hospitals across the country. Capture market being vacated by Fortis Hospitals . Tie up with expanding health insurance companies for health insurance - help in expanding market.
- 29. BIBLIOGRAPHY https://www.narayanahealth.org/about-us http://www.yourarticlelibrary.com/marketing/marketing-mix/useful-notes-on- competitive-advantage-explained-with-examples/41094 http://knowledge.wharton.upenn.edu/article/narayana-hrudayalaya-a- model-for-accessible-affordable-health-care/ https://scroll.in/brandstudio/abbott/857719/putting-the-patient-first-insights- for-hospitals-to-meet-customer-service-expectations www.moneycontrol.com