Recommendations

High cost
It provides high world class services but it comes at a cost which costs a huge amount which
cannot be afforded by the common Indian citizen. This prevents it from becoming a primary
choice for most of the general population. It should use technological advances like AI to cut
these costs. It has already built an algorithm with the help of records of more than 500K
patients which help predict cardiac diseases (5-10) years with 90% accuracy. It has also
entered into a partnership with Microsoft to deploy AI and machine learning models to
predict said disease. It can use the same models it develops to look for disease in rural areas
and provide preventive measures which are often cheaper than cures.
Low penetration
It is mostly present in highly urban areas mostly in tier 1 cities massively decreasing it
accessibility to the general population. It can circumvent this flaw by setting up a subsidiary
which can provide low cost low initial capital investment subsidiary.
Lowering fixed cost
Since opening new branches for Apollo is a massive capital investment it can lower it by
opening remote small clinic which can use video conferencing technology to reduce costs
and increase availability of experts. Current Apollo has 172 primary care & diagnostic clinics
which is an extremely low number.
Medical tourism
Apollo may be expensive based on Indian standards but if you compare its prices globally it
is still extremely cheap compared to western health care systems. So it can use this fact and
combined with its world class services provide itself with a huge boost to its income form
foreign patients. For the development of medical tourism, the Indian government
began to adopt a series of policies and measures from 2002, in order to attract more
medical tourists. Apollo is getting helps from government to stay the competition
advantages. It is taking some strategic initiatives to serve international clients better,
including a new medical institution in resorts. Tourism is expected to increase by 200% from
2019s $3 billion to $9 billion in 2020
Under developed health care availability
India is that third world country that is evolving in terms of hospitals and healthcare. This is
definitely one of the main reasons which account for positive opportunities for the Apollo
Hospitals. The lesser amount of developed healthcare service providers around the country
pose as one of the best opportunities for this hospital.
Ageing population
The current Indian life expectancy is going up and the old require more medical attention
leading to increased business opportunities. Apollo show utilise this demographic to see a
heightened profit margin.

Establishing eICU
An Electronic Intensive Care Unit (eICU) is a form of telemedicine that uses state of the art
technology to provide an additional layer of critical care service. An eICU may also be
referred to as a tele-ICU. Apollo has a huge roster of experts working under its vast
institution but all of the experts are not available at each of its institution all the time to
provide guidance through their expert advice on necessary issues. But eicu will provide
patients especially elderly patients with the necessary 24x7 support they need to live a
fulfilling life.
Expansion into Ayurvedic sector
Ayurveda is an extremely popular sector of medicine which is extremely popular in India and
abroad. Apollo can open up a subsidiary which specializes in ayurvedic treatment for minor
disease and epically as preventative measures to the general Indian population. As it’s a low-
cost method of medical treatment and highly trusted by the general Indian population. It can
use this method to also promote its main brand as well as create awareness of its facilities
withing the masses
Insulated Indian economy
Indian economy even in this age of globalization is still Fairley isolated from global crisis’s this
provides with a stable economic base where it can invest in its long-term expansion programs
resulting in Apollo easily being able to expand its network of hospitals since that takes a long
gestation period for it to occur.

Socio-economic changes
As predicted by the The International Monetary Fund India has entered into the top 5
economies with India averaging a growth rate of 6% in its GDP and rising education levels
has resulted in massive wealth generation. We would recommend Apollo to expand its
current chain of hospitals since the demand is set to increase as millennials and Gen Z grow
up with much higher purchasing power than their parents resulting in increased demand
and Apollo must be ready to meet it.
Expand pharmacies network
Standalone pharmacies constitute 93% of the total market largely dominated by the
unorganized sector. Apollo operates 2556 pharmacies which is a moderately low number
when compared to the total estimated number of pharmacies being around 1900000. It has
already a well-established positive brand image in the Indian market which It can take
advantage of to expand its pharmaceutical network and take advantage of the rapid
growing Indian pharma market which is expanding at a rate of 9.4% year on year
domestically.
Increase awareness of its Cosmetic Clinics
In this age of snap chat and Instagram everyone wants to look their best to fulfill this
demand Apollo has opened Apollo Cosmetics. But the general awareness and marketing
campaigns behind this endeavor have fallen shot and not provided the necessary hype to
make them a house hold name as these procedures are usually cheap and mostly in reach of
the general public the only thing lacking is the awareness about the procedures and their
affordability.
Effective utilization of FDI
Today, Indian healthcare funding is witnessing a dynamic growth of venture capital and private
equity funds. Investors interest in the healthcare space has significantly risen in the past few years.
Multinational players have consistently been focusing on the Indian health care market and trying to
enlarge their presence through partnerships and investments. These trends indicate the rising
investor confidence in the Indian healthcare space and the perception of India as an attractive
healthcare investment destination.

Effective use of social media to curb phobia

It already has a minor presence on YouTube where they explain procedures and various discussions
on health and safety issues. It needs to promote its social media platforms which can help boost its
image on a global level. It can do this by doing collaborations with similarly oriented channels focus
on science and healthcare or by providing incentives to its current userbase to join their social media
platforms thus spreading awareness.

Strengthen its presence in key strategic markets

As the total population in urban areas increase especially in tier 1 cities they need to increase their
bed capacity and establish new healthcare centres so that they can enforce their marker presence
and increase their market share through increases in high quality tertiary services.

Establish centres of excellence

They need to establish highly focused research-based institutions which focus on the increasing
lifestyle diseases that are affecting the general population. These should focus on developing sub-
specialities and treatment services.

Focus on improving operating efficiency

They should seek to maximize efficiencies through greater integration, better supply chain
management and human resource development. They should also plan to maximize efficiencies at
their hospitals and pharmacies through greater integration across their network. To ensure cost
optimization, they should intend to focus on standardizing the type of medical and other
consumables used across their network, optimizing procurement costs, consolidating their suppliers
and optimizing the use of medical consumables by establishing guidelines for medical procedures
across their network.