Strategic Analysis of Estia Aged Health Care

Running head: STRATEGIC ANALYSIS
Strategic analysis
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STRATEGIC ANALYSIS
Table of Contents
Introduction:...............................................................................................................................2
Background information on Estia Aged Health care:................................................................2
Macro environmental analysis:..................................................................................................5
Industry analysis:.......................................................................................................................7
Internal strategic capabilities and analysis:................................................................................9
Conclusion:..............................................................................................................................11
References list:.........................................................................................................................13

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STRATEGIC ANALYSIS
Introduction:
The report is prepared to conduct strategic analysis of an Australian public listed
company that is Estia Health aged care by focusing on business of residential aged care.
Discussion incorporates the background information of organization in terms of its size,
history, ownership business scope, major markets and major products and services of selected
organization. Macro environmental analysis of industry in which Estia Health aged care
operates is demonstrated in the report and this will assist in drawing implications for
organization in terms of opportunities and threats. Competitive analysis of industry is
undertaken using the model of Porters five forces. Resources providing sustainable
competitive advantage to business are identified by the application of VRIO that helps in
determining strategic capabilities of organization.
Background information on Estia Aged Health care:
History:
Estia Health Aged care (EHC) is one of the largest aged care providers to resident of
Australia that was established in year 2005 (estiahealth.com.au 2018). Organization is
historically present in four states of Australia that is Victoria, New South Wales, Queensland
and South Australia and the group is well positioned to pursue and identify opportunities for
acquisition in each of these states. 88% of residential aged care is placed in these four states
of Australia. Prior to merger of company in year 2014, the company has a history of
expanding into number of facilities and places where it operated (estiahealth.com.au 2018).
Business components and aggregate number of places of Estia increased to 3203 in year 2014
compared to 1264 in year 2008. In year 2015, Estia entered into contracts for acquiring
further five facilities and the expansion have been achieved via the expansion of existing
facilities, acquisitions and new facilities development. Increased revenue per bed and

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STRATEGIC ANALYSIS
increased occupancy rates have been achieved by acquisition of nine facilities and
development of further three facilities over the period of 2012 to 2014 (Gioia, 2014).
Major products and services:
Focus of organization is to provide resonate choices to families and residents, helping
in organizing program for families, straightforward services by creation of family codes. The
family code is incorporate some elements such as always approachable, creating happiness,
pushing limits, generating daily best and saying something by seeing something. Dedicated
services and increased bed proportion are the focus of organization in terms of their services
and products (E. Dobbs, 2014).
Well being and health-
 Entertainers and concerts
 Active games, bus trips and air and crafts
 Guided and physic exercise
 Religious services
Clinical care-
 Personal care
 24 hour nursing care
 Occupational and physiotherapy
 Arranging on site visits for external medical practitioners
 Administrative pharmaceutical and wound management
Dining and nutrition-
 Dining and family meals
 Nutritional requirement and dietary needs
Major markets:
Estia aged health carries out its operation in fragmented and growing industry and the
expanding existing facilities of business intends to provide beneficial opportunities to
company. Organization has market capitalization of $ 931.51 million. In the current scenario,
organization operates in four states of Australia with the target of reaching 10000 beds
through targeted acquisitions and development of strong organic pipeline by year 2020
(estiahealth.com.au 2018). Care requirement in the country will be driven by increased age of