1. Expansion through establishing own branches 2. New product 3.

Engagement in the alliance

Analysis Target audience: high middle class people, russians Positioning: high-quality Western standard services PESTEL Political State imposes high requirements on private clinics setting forth strict licensing conditions, initiating frequent inspections by different services, setting forth discriminative rules for private clinics operation as compared to state ones (doctor certification requirements for private clinics are stricter), preventing private clinics from cooperation with the mandatory medical insurance system. Recently the pressure exercised by state authorities has intensified against the federal target healthcare program backdrop Economic . Increase in rent, wages payments, costs of imported goods. 8-10% - premium segment 30% - medium priced segments Rather slow market growth -2% (St.-Petersburg) Social People are very price sensitive Environmental Difficulty in the attraction top doctors due to the reluctance to the official payments The wages are above the average (St-Petersburg) The increase in the supporting personal in the labour market Technological

Insufficient average level of operation based on Evidence Based Medicine principles, poor equipment of medical institutions, failure to comply with international standards of medical aid, hi-tech medicine underdevelopment SWOT Opportunities

Value Chain HR o 300 people, specialists are very qualified Technology State of the art equipment Infrastructure One outlet

Porters 5 forces Buyer Competition Dumping prices from state institutions In the nearest future 5 or 6 large-scale multi-field medical centers are likely to emerge in many Russian cities replacing standalone medical offices. Decreasing of share of state institutions 4 competitors New entrants Low power due to the high initial investments