Comprehensive Health Strategies: Industry Sector Analysis of Aged Care Services in Australia

Running head: COMPREHENSIVE HEALTH STRATEGIES
INDUSTRY SECTOR ANALYSIS
Name of the Student
Name of the University
Author note

1COMPREHENSIVE HEALTH STRATEGIES
Introduction
The process of industrial analysis works as a tool for organizations and companies which
provides similar services or products in the market to understand their standing within the
competition (Dean 2012). It also helps them to strategize a competitive and effective planning so
that they can establish their services better within the existing competition (Hamm and Hamm
2012). Aged care services in Australia provides the elderly population with their unique needs
regarding of their health and the growth of this industry has reached its highest point where it has
become a $20 billion+ industry in recent Australia, under which, 224,000 people are employed in
more than 1800 organizations that serves up to 300,000 people around the country
(Myagedcare.gov.au 2018). As the number of baby boomer generation is increasing, the scope of
such residential aged care homes are increasing extensively and covering interior as well as
exterior regions of the Australian territory (Baldwin, Chenoweth and dela Rama, 2015).
In this aged care industrial analysis related report, a detailed description of the aged care
sector and its primary activities within the helathcare sector of Australia will be discussed and
then the overview of the competitive landscape, identification and description of the
organizations within this segment will be discussed as per their business model. Further, the
industrial trends and its operating conditions and the factors includes will be discussed. Finally,
the ethical concerns faced while conducting such services within the industry will be discussed
Aged care industry and its primary activities
As per the Health and Standardization regulations of Australian healthcare system, aged
care is a service with a special purpose through which all the elderly population requiring
healthcare needs as well as accommodation, assistance for their activities of daily life so that

2COMPREHENSIVE HEALTH STRATEGIES
they can live their life independently (Myagedcare.gov.au 2018). Due to this helathcare needs
and intensive care requirements, aged care has become one of the most important helathcare
needs for growing older population of Australia and such service has become of the most
important service in helathcare sector from where investors can generate maximum revenues.
There are three sections of the aged care facility in Australia, HACC (home and community
care), home care and residential care (Aged Care Financing Authority 2018). The primary
activities of this service is associated with providing care and assistance to the older patients
within their care facility with their activities of daily life, movement, sanitization, as well as
mental care such as providing counselling and other communication therapies so that physically
and mentally they could become independent and live their life without and concern (Baldwin,
Chenoweth and dela Rama, 2015).
Potential competitors of aged care industry
As the aged care sector is a human service, many economists does not support the fact
that this sector could also face such competition like other services face while competing in a
closed market segment (Kim and Mauborgne 2014). However this service could be named as the
“Experienced Good” or the kind of service in which competition does not exist till the users use
one service and then provides feedback of that specific organization. Hence, the competition will
exist from the point where the consumer and the service providers are part of the market closely
(Kaine and Ravenswood 2013). As only after using the service, one patient can feel that the
service was helpful or not helpful, majority of the aged care service are equipped with equal
patients within their care facility (Yeandle, Kröger and Cass 2012). The three sections of aged
care such as HACC, home care and residential care and share of non-profit and private as well as
government sector within the facility has been mentioned below using graphs.

3COMPREHENSIVE HEALTH STRATEGIES
74%
18%
8%
HACC
non profit
for profit
government
[Distribution within HACC, created by the author with data from (Aged Care Financing
Authority 2018)]
69%
12%
19%
Home care
non profit 74
for profit 18
government 8
[Distribution within Home care, created by the author with data from (Aged Care
Financing Authority 2018)]