SWOT ANALYSIS

STRENGTHS WEAKNESSES
Brand Position Capital Intensive
Extensive Reach Regulatory Burden
Technological Expertise Skill Shortage
Top clinical talent Heterogeneous Markets

OPPORTUNITIES THREATS
Under served markets Rising Costs
Medical Tourism Competition
Disease Burden Skill Shortage
Consumer Preferences Price Regulation

STRENGTHS

BRAND POSITION

The Apollo group has built and sustained a strong brand position. The group is seen as India’s flagship
integrated healthcare provider. It is largely due to the pioneering spirit which is exemplified in its effort
to be at the cutting edge of clinical protocols and technology.

EXTENSIVE REACH

Apollo’s trace includes 10,167 beds, 3,428 pharmacies and 765 retail healthcare centers across India, as
well as a deep online presence. The network is spread throughout India and provides services across 55
specialties.

TECHNOLOGICAL EXPERTISE

Apollo Hospitals has been the pioneer in adopting new technology for its medical procedures. It invests
heavily in cutting edge technology to improve treatment procedures, reduce the recovery time and thus
enhance overall healthcare outcomes.
TOP CLINICAL TALENT

The Apollo group is a preferred employer in the healthcare industry, and is able to attract and retain top
talent, both clinical and professional, from India and overseas. It has over 10,000 experienced medical
professionals working across various locations.

WEAKNESS

CAPITAL INTENSIVE

Medical equipment, buildings and land require heavy investments along with high operating costs. This
creates a high barrier to entry and expansion, and this is one of the key reasons why bed density
continues to lag behind the required number.

REGULATORY BURDEN

Healthcare as a sector, is heavily regulated. The government and other related authorities also regulate
the prices of drugs and other consumables. So, it is important to ensure that healthcare providers are
able to remain financially sustainable in the long-term as they adhere to the norms.

SHORTAGE OF SKILLED PROFESSIONALS AND EXPERIENCED DOCTORS

A high quality of doctors and skilled healthcare professionals is required to ensure high standards of
healthcare delivery. There are significant gaps in medical education in India. This has resulted in shortage
of medical practitioners, nurses and paramedics with requisite skills.

HETEROGENEOUS MARKETS

A significant management input and control is required in maintaining clinical standards and upgrading
the technology at regular intervals of time. Due to different demographics across the country, the
disease profiles of an area are also different which makes it difficult to apply a one solution for all
approach.

OPPORTUNITIES

HIGH NUMBER OF UNDER SERVED MARKETS

Due to differing demographics and related difficulties due to it, there are a large number of markets that
are not catered to as they should be and can be targeted to provide improved medical services.

MEDICAL VALUE TRAVEL

India is well-known for delivering world-class standard clinical outcomes, at less than one-tenth of the
cost prevailing internationally. Indian doctors are recognized for their expertise and competence, and the
quality of service that they provide.

DISEASE BURDEN

The incidence Non-Communicable Diseases in the country is on the rise. Their contribution to the
country’s disease burden presents a big opportunity for healthcare providers. Lifestyle diseases such as
cardiac ailments, diabetes, hypertension, cancer and orthopedic ailments will increase the need for
curative care.
CHANGING CONSUMER PREFERENCES

The general sentiment is that hospitals are intimidating to patients, especially to those patients with
relatively simple ailments who do not need the acute care facilities of a large hospital. The patients seem
to respond better in a relaxed atmosphere. Apollo Hospitals have responded to this need, by providing a
variety of options such as neighborhood clinics, short stay centers, home services and single specialty
centers.

THREATS

RISING COSTS

Costs for various inputs are rising. Revisions for minimum wage are underway in several categories of
manpower; real estate prices continue to inflate and costs of import of equipment and consumables are
high.

COMPETITION

Competition and its intensity has increased. Every player in the market is striving for market leadership.
This has lead to cut-throat competition and led some to resort to unfair practices for survival.

SHORTAGE OF SKILLED MANPOWER

There is a severe shortage of skilled healthcare professionals across the board. At 8 physicians and 12
nursing personnel per 10,000 population, India alarmingly trails the global median of 14 physicians and
29 nursing personnel.

PRICE REGULATION

The value of medical services is more than just the cost of inputs. Regulation of prices for quality services
can cripple the finances and compromise the quality of care.