Strategic Management for Estia Aged Care Services

Running head: STRATEGIC MANAGEMENT
Strategic management
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Executive summary
The aim of this report is to discuss about the external and internal factors being faced by Estia
aged care services. In due so, this report used the models such as PESTLE, SWOT, VRIO and
Porter five forces model. Various positive and negative factors are being identified in this report
of Estia aged care services. This report concludes that, the recommended steps discussed in this
report will help to overcome the issues identified in this report.

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Table of Contents
Introduction......................................................................................................................................3
Company profile..........................................................................................................................3
SWOT Analysis:..............................................................................................................................4
Porter’s five force model:................................................................................................................6
Analysis of the macro environment.................................................................................................8
Discussion..................................................................................................................................12
VRIO framework...........................................................................................................................13
Valuable.....................................................................................................................................13
Rarity of the resources...............................................................................................................14
Inimitability of the resources.....................................................................................................14
Organizational capability...........................................................................................................15
Recommendations..........................................................................................................................15
Conclusion:....................................................................................................................................16
Reference.......................................................................................................................................17

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Introduction
Health care is one of the most sensitive and potential business sectors in the current
business scenario. Moreover, in the current business state of affairs, health care for the aged
peoples are becoming more complex. This is due to the reason that, a major section of the elderly
people is dealing with loneliness and they are in the need of the personalized health care in the
homey atmosphere (Brownie and Nancarrow 2013). In accordance to these market requirements,
various organizations have started to offer residential aged care services. Estis health is one such
leading organization providing aged care services in the Australian market.
However, with the increase in the market size, the competition is also going higher due to
the entry of more number of competitors in this sector. In accordance to the increase in the
competition in the market, it is of urgent requirement for Estia health to come up with effective
business and marketing strategies. This report will identify the external and internal
environmental factors being faced by them in their business operation along with providing some
recommended steps to overcome the challenges.
Company profile
Estia health is one of the leading aged care service providers in the Australia regions.
They are founded in 2005 and are based in Melbourne, Australia. They offer quality aged acre
services for the elderly people in homely environment (Estia Health 2018). Apart from the
providence of health care services, they also look after the wellbeing of the residents by initiating
various activities in their daily life. According to their official website, their vision is to create
the concept of one family in serving the aged people.

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With having holistic service offerings and expertise in this sector, Estia health is going
ahead to be the market leader in this business segment. The service offerings of them are being
designed in such way that, the aged people will lead a happy and nutritious life apart from health
care. Their major offering is providing health care services to the aged people from their various
homes across Australia. Currently, they are having their homes in different locations around
Australia. They do not have their presence in the international market as of now.
SWOT Analysis:
Estia health aged care facilitates in providing services to the seniors and aged people by
maintaining independent living. The organization provides best healthcare facilities for the aged
people. With an increase in aging population n the country, this industry seems crucial for
growth. Estia health care facility can easily take advantage of the existing market condition by
making profit. On the other hand, weaknesses also tend to threaten the growth and success of the
entity. Conducting a SWOT analysis demonstrates the organization’s strength, weaknesses,
opportunities and threats (XIA et al. 2015).
 Strengths:
Estia’s has its proud heritage of serving its nation for almost 50 years. Specialized
healthcare teams, quality and innovation are the key strength of the organization. Estia provides
quality aged care facilities besides providing caring and inclusive experiences all across
Australia. The major purpose of the organization is to create their Family Code. The family code
is initiated to create happiness for the senior citizens. Specialized care is offered to those seniors
with dementia, memory loss and Alzheimer’s disease (Hilmi and Emenyeonu 2014). The health
care is well designed with modern facilities to meet the demands or needs of all the aged people.

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For example, walk- in closet besides implying luxury also becomes easier for the aged people to
ascertain what they happily want to wear (Tucker et al. 2015). Estia focuses on this little feature
as it reassures the adult children about the well-being of their aged parents. The organization
assures in providing comfort, support and caring of the aged people in all aspects.
 Weaknesses:
Developing an aged care living facility is expensive and costs money. These can
constraint growth of the company if there is low access to capital or limited financial capital.
Expenses like liability insurance can lead to drain the revenue of Estia’s health care centre.
Moreover, lack of trained and skilled workers in the healthcare agencies can also limit the
growth prospect of the organization. While operating in areas where trained workers are
unavailable can lead to increase in the expenditure by training and importing them the workers
from elsewhere (Unuvar, Kaya and Bilge 2017). This further creates communication barriers that
have an adverse affect on the customer experiences.
 Opportunities:
In the current scenario, economic forces leave health care centre in a strong position in
the business environment. Demand is growing at a rapid rate than supply as the population ages
more quickly than the availability of home care facilities being constructed. This shows that
expansion of healthcare industry faces less market risks as compared to other industries (Francis
and Ponnuswami 2014). A well organized and targeted marketing campaign that could increase
the awareness of Estia’s services and facilities. Moreover, adding services like extensive lineup
for medical personnel and on-site pharmacy. Allowing senior residents to share their voice in the