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Aravind Eye Care Systems –

Vision 2020

Abha Sinha
IIM Shillong
RGIIM Shillong,
Mayurbhanj Complex,
Nongthymmai, Shillong -793014
Business Model

Under this business model one patient pays for two

more patients for the treatment and still pays less
then what he/she may pay for the same treatment in
a private hospital.
This is achieved through :
Extraordinary operational efficiencies with the help of
technology, staffing etc
Treating people in large number which include rich as
well as poor
The model has helped the organization to remain
innovative, maintain very high quality standards,
financially viable and independent and above all
available for the poor masses
As the rich pay for the treatment, they ask for the
quality, so they are able to remain competitive and
hence enjoy a high reputation
Family Owned Business – the core values has not
changed over time
Internal Factors

Very committed leadership – Dr. V believed in leading by

example, inculcated a culture of discipline and hard work in the
Learning Organization – Committed to changing and excelling
Very high emphasis on quality – Was built in the culture of
Operational Efficiencies : Achieved by training, bulk size of
patients, use of Technology etc.
Emphasis on R&D
Hiring and training committed paramedics etc. for better
resource utilization – low staff turnover at this level
In- house training of world- quality – ACES has its own
medical college to train doctors
The cost of treatment required for the treatment of
eyes is cheap and requires one time support
Self- Reliant – Organization does not depend on other
organization for support
Collaborative Approach – its willingness to share know-
how with the other institutes through LIACO and in turn
it receives support
Ability to tie-up with like-minded institutions in order to
get right input and assistance
External Factors

Economy of the country is reviving – More people who can

pay are coming and revenue is increasing
Economy of Scale Advantage – Able to leverage on
Economies of Scale as the number of patients is high
Vertical Integration – Aurolab succeeded in manufacturing
IOLs at a sustainable price which is less than 3% of
international price, other products on similar lines were
Capital and other managerial supports from partners to
open Managed Hospitals– helps to expand especially to
north India
Government Support – though initially not much, but is
Improvement in Technology – has helped a lot to improve
the operational efficiencies
Non existence of Competition- as the focus was on
untapped market
Support from like-minded institutions like Seva in the initial
year of growth
Partnering with other firms in world- helps to get training
for the various diseases
Core Ideology, Mission and Vision –
Change ?

Need to be expanded a bit – Initial focus was to

eliminate the blindness due to cataract, this has
changed over the years, and so focus has to be made
broader by emphasis on other eye diseases as well
With the increasing demand of customers on quality,
more emphasis on R&D and Academics is required
The focus need to include prevention as well as cure –
with more focus on prevention as blindness due to
more reasons like diabetes coming up
Strategy for future

More emphasis on specialty eye care- As only AECS has the

capability and expertise to handle, only it should devote more
Separation of Specialty Care and Cataract Operations –
Cataract operations highly efficient may be separated from
Specialty eye care for the sake of growth of both
Creating a sense of ownership and commitment among
the employees especially doctors for the organization
Selling lenses and other equipment manufactured by
Aurolab in larger scale may be globally
Leadership – family members need to be groomed to be
future leaders in the changing environment who can keep the
values in place
Partnership to open more managed hospitals and in order to
grow faster
Partner with organizations like M.P. Birla Group, Rajiv Gandhi
Trust with huge capital and having similar aspirations
Continued use of latest IT to reach more people and provide
more efficient and quality support
Partnering with the like-minded world organization for
mutual help for training and other support
More emphasis on R&D so as to discover cost effective
solution for more eye diseases