In addition, Fortis Healthcare has grown to become a worldwide leader in the delivery of a wide variety of sophisticated medical care in areas such as heart surgery. Although this is a positive aspect, particularly because it has led to the increase of medical tourism, this trend will result to adverse effects in the future (Fortis Hospital, 2001). This is because the company is gradually losing the desire to cater for the local people, and it is focusing on foreign care seekers.
Therefore, the local people may opt to seek healthcare services from other emerging healthcare providers, which can make the organization lose local dominance in its home country. In addition, the company always sees an opportunity in failed healthcare firms, and that is why it seeks to acquire them. However, it fails to calculate the costs involved in the improvements of the organizations. The company has some cases in court, and this is dangerous for the reputation and subsequent growth of the company. This may also result to the emergence of other cases, or public scrutiny and this is not good for business (Fortis Healthcare, 2011).
External Environment
Government Support
In India, private healthcare organizations enjoy support from the government. This is so in terms of appropriate policies about healthcare. For example, the government of India has allowed 100% FDI. In addition, the government has provided infrastructure status to the healthcare firms, and this includes low tariffs when it comes to medical equipment. For hospitals in the rural areas, the government provides tax holidays for a considerable amount of time, such as five years. In addition, the government, due to its inability to provide primary care, it has allowed the private healthcare sector to provide the services to the people (Sagar & Praveena, 2013).
Competition
India is renowned for its high level and world-class healthcare services. Locally, there is stiff competition from organization such as Max, and Apollo's. Apollo's has managed to be the leading healthcare organization in India, but Fortis is coming up fast. In this century of technology, there is an opportunity for Fortis to emerge the leading healthcare provider in India by 2020. In addition, its strategy of merger and acquisition can also contribute to its realization of being a global healthcare provider (Sagar & Praveena, 2013).
Indian People
Although the organization has managed to realize a global status, it remains locally attached as a way to appreciate the local people. This is why the local Indian population perceives the health provider as being the best. Therefore, the organization receives support from the local population, and specifically because of its continued support to the people. For example, the health provider provides healthcare services to the local people at an affordable rate (Sagar & Praveena, 2013).
SWOT Analysis
Strengths
The setting, or rather India is a country endowed with many qualified health professionals, and this is strategic to the organization. In this context, the organization does not need to outsource for professionals from foreign countries. On the other hand, the organization has a strong local foundation, and the world recognizes it for its success rates in operations. The hired professionals are global icons, and renowned for their experience in the health care industry. Therefore, they serve as marketing tools for the company to foreign and local care seekers. For the local people, there are varieties of services, which are available at an affordable rate (Fortis Healthcare, 2011).
Opportunities
One of the greatest opportunity the organization faces is the potential expansion to other countries. The company has managed to acquire a substantial asset base in its home country, and it has an opportunity to acquire the same in emerging markets such as Malaysia, China, UAE and Indonesia. The organization also has substantial amounts of capital, which it can use for other activities such as acquire other healthcare technologies, acquire other healthcare organizations, and improve its infrastructure. Alternatively, the government of India is in favor of healthcare providers because of their crucial role in provision and improvement of the well-being of people.
In addition, there is an opportunity of tourist medication, in terms of increasing. This is because the organization is providing excellent patient care, including services not offered in other parts of the world. There is growing demand of heart operations, which is among the services offered by the healthcare organizations. The demand is likely to grow, and this will
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now