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Apollo Health and Lifestyle Limited: Retail Franchising in The Healthcare Industry
Apollo Health and Lifestyle Limited: Retail Franchising in The Healthcare Industry
LIMITED:
RETAIL FRANCHISING IN THE
HEALTHCARE
INDUSTRY
Group : 4
Case facts
2
Brand name
Apollo has a strong brand value and that will attract customers.
Access to the latest knowledge in the medical field through Apollo
Hospitals can attract physicians also.
Value for money
Apollo can offer good quality at affordable price. From the case
regarding the competitors, nobody has such a proposition.
First mover advantage.
Training
Company is able to retain its control over brand value and processes
by good training.
Well designed clinics.
Functional efficiency to better use the resources like doctors and
support staff productivity.
Pleasant ambience through proper use of colors and lightings.
Easy to replicate and thus easy to maintain uniformity.
Weakness
6
This advertisement does not bring out what the core service offered
by AHLL is. It looks like an advertisement for a diagnostic laboratory
services.
AHLL is focusing on volumes than margins and thus will take some
time to breakeven.
Initial team recruited and trained had quit.
Dropout of doctors.
Poor patient flow.
Opportunities
9
Almost all cities and towns have nursing homes and clinics. These are most
commonly operated by doctors who neither have any specialization nor are
in a position to make significant investments.
Home healthcare
Advantages: Disadvantages:
Healthcare industry is booming.
Franchisee should have same
Rapid expansion is possible with a level of commitment as the
franchisee model. company.
Apollo need not incur any upfront Customer satisfaction is very
investment. important.
Franchisee is expected to put in the effort Difficult to maintain consistency
and commitment. in service.
Franchisee owner can enjoy having an Initial license fee of Rs 20 lakh is
independent business, on the other hand too much.
he has the reputation that comes from
being under the umbrella of a big brand.
Letter from a franchisee causes
doubt about the technical
Since Apollo is an internationally support from Apollo.
recognized brand, opening Apollo Clinic
franchise minimizes business risks.
Health insurance in the Indian
context covers the expenses
This will also increase the brand value of relating to hospitalization only.
Apollo hospitals.
Should it decide on setting up an owned model?
12
Advantages: Disadvantages: