Competitive Strategy Analysis of Bupa Aged Care Home in Australia
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AI Summary
This study examines the competitive strategy employed by Bupa Aged Care, a leading health service provider in Australia. Through an analysis of the external environment using PESTLE and Porter's Five Forces, as well as internal factors through SWOT analysis, the study identifies key strengths, weaknesses, opportunities, and threats facing Bupa. The analysis also incorporates the CAGE framework to understand the challenges and opportunities presented by cultural, administrative, geographical, and economic distances. The study concludes by highlighting the importance of strategic planning and adaptation in navigating the competitive landscape of the aged care industry.
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Competitive strategy
1
1
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Executive summary
The competition in the market is threatening companies in Australia for which different plans
and strategies are used by the firm. In this study, it has been understood that the Bupa aged
care home is effectively using strategies which are making it as one of the leading health
serving organisation in the nation. Several models have been understood where the company
is putting its best efforts to meet the market needs and requirements and satisfying the
patients with the best quality services.
Company’s background
The Bupa aged care home is one of the health care homes which are serving especially the
aged people of the nation. The variety and diverse way of services and support are been
availed by the firm to the patients especially the aged people. The support is provided to
approximately 7600 residents of the country, where special care is availed to the most desired
people as aged ones.
2
The competition in the market is threatening companies in Australia for which different plans
and strategies are used by the firm. In this study, it has been understood that the Bupa aged
care home is effectively using strategies which are making it as one of the leading health
serving organisation in the nation. Several models have been understood where the company
is putting its best efforts to meet the market needs and requirements and satisfying the
patients with the best quality services.
Company’s background
The Bupa aged care home is one of the health care homes which are serving especially the
aged people of the nation. The variety and diverse way of services and support are been
availed by the firm to the patients especially the aged people. The support is provided to
approximately 7600 residents of the country, where special care is availed to the most desired
people as aged ones.
2
Contents
Executive summary..................................................................................................................................2
Company’s background........................................................................................................................... 2
1. Introduction..........................................................................................................................................4
2. External analysis (PESTLE)................................................................................................................ 5
2.1 Political factor................................................................................................................................5
2.2 Economic factor............................................................................................................................. 5
2.3 Social factor................................................................................................................................... 5
2.4 Technological factor......................................................................................................................5
2.5 Legal factor.................................................................................................................................... 5
2.6 Environmental factor..................................................................................................................... 5
3. Porter’s five force model..................................................................................................................... 6
3.1 Bargaining power of suppliers....................................................................................................... 6
3.2 Bargaining power of buyers...........................................................................................................6
3.3 Threat of new entrants................................................................................................................... 6
3.4 Threat of substitutes.......................................................................................................................7
3.5 Industrial rivalry............................................................................................................................ 7
4. Pankaj Ghemawat (Cage Strategy)...................................................................................................... 8
5. Swot analysis.......................................................................................................................................9
6. Conclusion......................................................................................................................................... 10
7. References..........................................................................................................................................11
3
Executive summary..................................................................................................................................2
Company’s background........................................................................................................................... 2
1. Introduction..........................................................................................................................................4
2. External analysis (PESTLE)................................................................................................................ 5
2.1 Political factor................................................................................................................................5
2.2 Economic factor............................................................................................................................. 5
2.3 Social factor................................................................................................................................... 5
2.4 Technological factor......................................................................................................................5
2.5 Legal factor.................................................................................................................................... 5
2.6 Environmental factor..................................................................................................................... 5
3. Porter’s five force model..................................................................................................................... 6
3.1 Bargaining power of suppliers....................................................................................................... 6
3.2 Bargaining power of buyers...........................................................................................................6
3.3 Threat of new entrants................................................................................................................... 6
3.4 Threat of substitutes.......................................................................................................................7
3.5 Industrial rivalry............................................................................................................................ 7
4. Pankaj Ghemawat (Cage Strategy)...................................................................................................... 8
5. Swot analysis.......................................................................................................................................9
6. Conclusion......................................................................................................................................... 10
7. References..........................................................................................................................................11
3
1. Introduction
At present time there is a high level of competition in the market in every sector. It is very
important for the organizations in the Australian market to make appropriate strategies and
plans so as to meet the changing market requirements. The competitive strategy is very
important for the company as this will be helping the firm to meet the market needs and
requirements along with those the firm will also be able to attain competitive benefits of the
market. There are several companies which are using different strategies and tactics to sustain
and survive in the competitive world. With the help of SWOT, PESTLE, CAGE and Porter’s
five forces model the competitive survival attained by Bupa Aged Care. The health
insurance for the aged people is the product of the chosen organisation
4
At present time there is a high level of competition in the market in every sector. It is very
important for the organizations in the Australian market to make appropriate strategies and
plans so as to meet the changing market requirements. The competitive strategy is very
important for the company as this will be helping the firm to meet the market needs and
requirements along with those the firm will also be able to attain competitive benefits of the
market. There are several companies which are using different strategies and tactics to sustain
and survive in the competitive world. With the help of SWOT, PESTLE, CAGE and Porter’s
five forces model the competitive survival attained by Bupa Aged Care. The health
insurance for the aged people is the product of the chosen organisation
4
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2. External analysis (PESTLE)
2.1 Political factor
The political factors are having a great influence on the operations and activities of Bupa
Aged Care. The introduction of new political policies and norms by the government is
influencing the aged care home to perform appropriately. It is also having a great influence
on the health, infrastructure as well as the education of the people about their health (Aged
Care Online, 2018).
2.2 Economic factor
The economic situation of the nation is fluctuating which is having an impact on the
company’s functioning. It is very important for the organisation to avail the health insurance
services to every individual of all the levels. Due to poor economic and spending power
people avoid to avail the health insurance services especially the aged people. Therefore,
equality has to be maintained so that the firm can attain competitive market benefits.
2.3 Social factor
The social concerns at the present time are very less the people are not even bothered to serve
their own parents after a certain period of time. This is the time where the Bupa age care
homes are actively participating and helping the aged people to live a relieved life till their
death.
2.4 Technological factor
Technology is an emerging factor at the present time which is very effectively assisting the
firms to meet the needs and requirements of the patients. There are different technologies
which if used can aid the aged people to do the activities by themselves. The Bupa aged care
home is effectively using the desired technology for the aged people for their self-assistance.
2.5 Legal factor
There are several laws which the government of a nation is introducing for the welfare and
safety of the aged people in different care homes. The safety and security of the patient are
very important which has to be followed by the firm in the appropriate manner. This will help
in proving safety to the aged people who are availing the health insurance services
(Yuliansyah, et. al., 2016).
2.6 Environmental factor
The environmental factors are also a very important aspect which needs to be considered in
an effective and appropriate manner so as to attain the competitive benefits of the market.
5
2.1 Political factor
The political factors are having a great influence on the operations and activities of Bupa
Aged Care. The introduction of new political policies and norms by the government is
influencing the aged care home to perform appropriately. It is also having a great influence
on the health, infrastructure as well as the education of the people about their health (Aged
Care Online, 2018).
2.2 Economic factor
The economic situation of the nation is fluctuating which is having an impact on the
company’s functioning. It is very important for the organisation to avail the health insurance
services to every individual of all the levels. Due to poor economic and spending power
people avoid to avail the health insurance services especially the aged people. Therefore,
equality has to be maintained so that the firm can attain competitive market benefits.
2.3 Social factor
The social concerns at the present time are very less the people are not even bothered to serve
their own parents after a certain period of time. This is the time where the Bupa age care
homes are actively participating and helping the aged people to live a relieved life till their
death.
2.4 Technological factor
Technology is an emerging factor at the present time which is very effectively assisting the
firms to meet the needs and requirements of the patients. There are different technologies
which if used can aid the aged people to do the activities by themselves. The Bupa aged care
home is effectively using the desired technology for the aged people for their self-assistance.
2.5 Legal factor
There are several laws which the government of a nation is introducing for the welfare and
safety of the aged people in different care homes. The safety and security of the patient are
very important which has to be followed by the firm in the appropriate manner. This will help
in proving safety to the aged people who are availing the health insurance services
(Yuliansyah, et. al., 2016).
2.6 Environmental factor
The environmental factors are also a very important aspect which needs to be considered in
an effective and appropriate manner so as to attain the competitive benefits of the market.
5
The organisation is taking initiative by making the nearby communities to protect the natural
and environmental factors in the appropriate way. The risk management plans are also been
used by the firm.
3. Porter’s five force model
(Source: Smart Insights, 2016)
3.1 Bargaining power of suppliers
The number of aged care homes is there in the Australian market which is providing a
number of opportunities to the suppliers. This is creating a threat to Bupa age care home to
carry out the work in the desired manner. This is enhancing the power of bar4gaining of the
suppliers. Due to effective and satisfactory health insurance services of the Bupa care home,
suppliers are not bargaining much as a number of other options of suppliers are also available
to the firm.
3.2 Bargaining power of buyers
The buyers are also having the bargaining power which is influencing the operations of aged
health care homes, but the services availed to the patients in Bupa age care is very effective
and relieving the customer which make them use the health insurance services without much
bargaining.
6
and environmental factors in the appropriate way. The risk management plans are also been
used by the firm.
3. Porter’s five force model
(Source: Smart Insights, 2016)
3.1 Bargaining power of suppliers
The number of aged care homes is there in the Australian market which is providing a
number of opportunities to the suppliers. This is creating a threat to Bupa age care home to
carry out the work in the desired manner. This is enhancing the power of bar4gaining of the
suppliers. Due to effective and satisfactory health insurance services of the Bupa care home,
suppliers are not bargaining much as a number of other options of suppliers are also available
to the firm.
3.2 Bargaining power of buyers
The buyers are also having the bargaining power which is influencing the operations of aged
health care homes, but the services availed to the patients in Bupa age care is very effective
and relieving the customer which make them use the health insurance services without much
bargaining.
6
3.3 Threat of new entrants
The market is open for everyone in the market, therefore new firms with the same motive and
innovative ideas are getting into the field. The new entrance is a threat to the organisationbut
due to its excellent working, the firm is not facing many issues (Srdjevic, et. al., 2012).
3.4 Threat of substitutes
The substitutes are there in limited number which is availing the services to the aged people.
Henceforth, there is no much problem which the company may face. This is helping the firm
to sustain long in the market and competitive benefits are also get attained effectively.
3.5 Industrial rivalry
The geographical factors are limited which is not threatening the organisation which is a
positive aspect for Bupa age care home as this could be able to put its level best and quality
and other elements. This will attract a large number of aged people to use its health insurance
services only.
7
The market is open for everyone in the market, therefore new firms with the same motive and
innovative ideas are getting into the field. The new entrance is a threat to the organisationbut
due to its excellent working, the firm is not facing many issues (Srdjevic, et. al., 2012).
3.4 Threat of substitutes
The substitutes are there in limited number which is availing the services to the aged people.
Henceforth, there is no much problem which the company may face. This is helping the firm
to sustain long in the market and competitive benefits are also get attained effectively.
3.5 Industrial rivalry
The geographical factors are limited which is not threatening the organisation which is a
positive aspect for Bupa age care home as this could be able to put its level best and quality
and other elements. This will attract a large number of aged people to use its health insurance
services only.
7
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4. Pankaj Ghemawat (Cage Strategy)
Cultural distance- The cultural distances which the Bupa care home is concerned with it’s
the language barrier. The differences in the language are a major issue which comes across
the offerings and services of the aged care home. For this, the employees are also hired in
different cultures and places so that the patients can be dealt within an appropriate and best
possible manner.
Administrative distance- The administration may vary from person to person as per their
needs and requirements. Therefore, it is very important for the Bupa age care home to
consider exactly the required needs of the aged people. The different may get arise due to
several external factors, therefore a high need to manage and handle the situation is required
(Fadun, 2014).
Geographical distance- The local supervision is highly important which is lacking in Bupa
age care home in Australia. It is also very important that at every place where the aged care is
dealing to have all the necessary resources and materials. This will aid in healing the
problems of the aged people of the society.
Economic distance- The income of people is varying is varying from person to person as per
their job and qualification. This is creating the differences in the paying capacity of the
people. This will be influencing the quality of the health insurance services, but it is very
important for the management to avail equality in all.
8
Cultural distance- The cultural distances which the Bupa care home is concerned with it’s
the language barrier. The differences in the language are a major issue which comes across
the offerings and services of the aged care home. For this, the employees are also hired in
different cultures and places so that the patients can be dealt within an appropriate and best
possible manner.
Administrative distance- The administration may vary from person to person as per their
needs and requirements. Therefore, it is very important for the Bupa age care home to
consider exactly the required needs of the aged people. The different may get arise due to
several external factors, therefore a high need to manage and handle the situation is required
(Fadun, 2014).
Geographical distance- The local supervision is highly important which is lacking in Bupa
age care home in Australia. It is also very important that at every place where the aged care is
dealing to have all the necessary resources and materials. This will aid in healing the
problems of the aged people of the society.
Economic distance- The income of people is varying is varying from person to person as per
their job and qualification. This is creating the differences in the paying capacity of the
people. This will be influencing the quality of the health insurance services, but it is very
important for the management to avail equality in all.
8
5. Swot analysis
Strength
The services availed are in a
diversified manner.
It is having very strong economic
stability.
The customers are highly satisfied
and are loyal towards the firm’s
health insurance services.
The Bupa age care home is very well
recognized in the Australian market
and is a well-known brand in the
field of age care (Garnett, et. al.,
2015).
The culture of the care home is very
relieving and relaxing.
The employees are also contributing
effectively with the help of this
supporting working culture.
Weaknesses
The prices of the server products are
comparatively high.
The website is static which a major
issue is.
Improper management of the
uncertainties.
Opportunities
The market expansion at untapped
places.
Mergers and acquisition for growth.
Threats
A large number of competitions.
New policies and interventions of
the government (Niederwieser, et.
al., 2016).
9
Strength
The services availed are in a
diversified manner.
It is having very strong economic
stability.
The customers are highly satisfied
and are loyal towards the firm’s
health insurance services.
The Bupa age care home is very well
recognized in the Australian market
and is a well-known brand in the
field of age care (Garnett, et. al.,
2015).
The culture of the care home is very
relieving and relaxing.
The employees are also contributing
effectively with the help of this
supporting working culture.
Weaknesses
The prices of the server products are
comparatively high.
The website is static which a major
issue is.
Improper management of the
uncertainties.
Opportunities
The market expansion at untapped
places.
Mergers and acquisition for growth.
Threats
A large number of competitions.
New policies and interventions of
the government (Niederwieser, et.
al., 2016).
9
6. Conclusion
From the discussion, it has been understood that the there are several strategies and plans
which are used by the firm to compete in the competitive world. Strategies play a vital role in
motivating the firms to attain market benefits in the required manner. It is also very necessary
for the company to consider the market influence on the business operations. As Bupa health
care homes areanalysing every aspect of the market with the use of different models and
strategies which help it in knowing the necessary requirement to operate in the competitive
market.
10
From the discussion, it has been understood that the there are several strategies and plans
which are used by the firm to compete in the competitive world. Strategies play a vital role in
motivating the firms to attain market benefits in the required manner. It is also very necessary
for the company to consider the market influence on the business operations. As Bupa health
care homes areanalysing every aspect of the market with the use of different models and
strategies which help it in knowing the necessary requirement to operate in the competitive
market.
10
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7. References
Aged Care Online, 2018. Bupa Aged Care Templestowe. [Online]. Aged Care Online.
Available at: https://www.agedcareonline.com.au/residential-aged-care/facilities/
bupa-aged-care-templestowe. [Accessed: 20th August 2018].
Fadun, S.O., 2014. Strategic management, an organisational risk management
framework: Case study of guaranty trust bank plc. International Journal of Academic
Research in Accounting, Finance and Management Sciences, 4(2), pp.51-61.
Garnett, P., Mollan, S. and Bentley, R.A., 2015. Complexity in history: modelling the
organisational demography of the British banking sector. Business History, 57(1),
pp.182-202.
Niederwieser, D., Baldomero, H., Szer, J., Gratwohl, M., Aljurf, M., Atsuta, Y.,
Bouzas, L.F., Confer, D., Greinix, H., Horowitz, M. and Iida, M., 2016.
Hematopoietic stem cell transplantation activity worldwide in 2012 and a SWOT
analysis of the Worldwide Network for Blood and Marrow Transplantation Group
including the global survey. Bone marrow transplantation, 51(6), p.778.
Smart Insigths, 2016. What is Porter’s five force model? [Online]. Smart Insights.
Available at: https://www.smartinsights.com/marketing-planning/marketing-models/
porters-five-forces/. [Accessed: 20th August 2018].
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for
multicriteria decision making based on SWOT/PESTLE analysis: a case study of
reconstructing a water intake structure. Water resources management, 26(12),
pp.3379-3393.
Yuliansyah, Y., Rammal, H.G. and Rose, E., 2016. Business strategy and
performance in Indonesia’s service sector. Journal of Asia Business Studies, 10(2),
pp.164-182.
11
Aged Care Online, 2018. Bupa Aged Care Templestowe. [Online]. Aged Care Online.
Available at: https://www.agedcareonline.com.au/residential-aged-care/facilities/
bupa-aged-care-templestowe. [Accessed: 20th August 2018].
Fadun, S.O., 2014. Strategic management, an organisational risk management
framework: Case study of guaranty trust bank plc. International Journal of Academic
Research in Accounting, Finance and Management Sciences, 4(2), pp.51-61.
Garnett, P., Mollan, S. and Bentley, R.A., 2015. Complexity in history: modelling the
organisational demography of the British banking sector. Business History, 57(1),
pp.182-202.
Niederwieser, D., Baldomero, H., Szer, J., Gratwohl, M., Aljurf, M., Atsuta, Y.,
Bouzas, L.F., Confer, D., Greinix, H., Horowitz, M. and Iida, M., 2016.
Hematopoietic stem cell transplantation activity worldwide in 2012 and a SWOT
analysis of the Worldwide Network for Blood and Marrow Transplantation Group
including the global survey. Bone marrow transplantation, 51(6), p.778.
Smart Insigths, 2016. What is Porter’s five force model? [Online]. Smart Insights.
Available at: https://www.smartinsights.com/marketing-planning/marketing-models/
porters-five-forces/. [Accessed: 20th August 2018].
Srdjevic, Z., Bajcetic, R. and Srdjevic, B., 2012. Identifying the criteria set for
multicriteria decision making based on SWOT/PESTLE analysis: a case study of
reconstructing a water intake structure. Water resources management, 26(12),
pp.3379-3393.
Yuliansyah, Y., Rammal, H.G. and Rose, E., 2016. Business strategy and
performance in Indonesia’s service sector. Journal of Asia Business Studies, 10(2),
pp.164-182.
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