Solent University: Babylon Health Entrepreneurship Analysis Report

This report provides an in-depth analysis of Babylon Health, a digital healthcare provider. It examines the entrepreneurial characteristics and motivations of Dr. Ali Parsa, the founder, in the context of contemporary business and entrepreneurial theory. The report evaluates Babylon Health's current subscription-based business model, assessing its suitability in a competitive environment. It also includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Furthermore, the report offers recommendations to ensure the organization's sustainability and maintain its entrepreneurial spirit, based on theoretical insights and observations from the Introduction to Enterprise and Entrepreneurship module at Solent University.

ANALYSIS OF THE BABYLON
HEALTH COMPANY UK

Table of Content
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Entrepreneur's behavioural characteristics and motivation in regards to the contemporary
enterprises and entrepreneurial theory.........................................................................................1
Current business model and its suitability with respect to contemporary business pressures.....3
Recommendations to ensure sustainability of the organisation...................................................5
Recommendations to ensure that the organisation remains entrepreneurial................................6
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Contemporary business is a traditional business form which is combined with the up to
date knowledge and processes, which gives it a framework of modern business. Contemporary
business is being complex and dynamic with time. The change in contemporary business
environment is the indication of development (Boone, Kurtz and Berston, 2019). A few example
of which include globalisation, virtual economy and smart city development. The innovative
contemporary business have a corresponding impact over the traditional theories of businesses
and management. This brings a healthy environment for employees to work including the skills
development of employees, new opportunities for them and new innovative ideas for the
organisation. Contemporary business development bring several issues which are related with the
designing of the perspective and its implementation. The report is based on Babylon Health
organisation including the entrepreneur's behavioural characteristics and motivation in regards to
the contemporary enterprise and the entrepreneurial theory. Further, it include current business
models and its suitability in respect with the contemporary business pressure as the new
innovation and the adhere of employees with traditional approaches require strategical
development procedure to bring the change and to reach the desired level of outcomes. Babylon
Health is a first health service provider which is digital as it combines an artificial intelligence
platform with virtual clinical operations for the patients. Web and mobile applications are used to
connect patients with health care professionals. In addition to this, the report include
recommendations to ensure the organisation's suitability and recommendations to ensure that the
organisation remains entrepreneurial.
MAIN BODY
Entrepreneur's behavioural characteristics and motivation in regards to the contemporary
enterprises and entrepreneurial theory
Babylon is a contemporary enterprise which has bought some innovation in its traditional
work technologies in order to provide better services to patients and increase the market position
as well. Dr. Ali Parsa is the entrepreneur of Babylon health, who got the innovative idea of
digital health. The contemporary enterprises development and strategical implementation is
dependent over the entrepreneur's behaviour characteristics and motivation. The behaviour of
entrepreneur should be positive towards risk situations and the uncertainties such as Ali Parsa

faced uncertain issues during his journey. In such cases the entrepreneur should positively deal
with the uncertainties when there is an incorporation of new commodities, in regards to the
profits and loss. Ali Parsa faced the uncertain unfamiliar conditions with patience
(Chechelashvili, 2019). The positive thinking bring positive outcomes and an entrepreneur
should be positive in regards to the success and goals. The mistakes and errors should be
accepted readily and necessary actions should be taken in regards to it. An entrepreneur face a
range of risk during the contemporary businesses which may include time, efforts and money in
initiating the businesses, fluctuations in prices and risk related with the non-acceptance of user
etc. The entrepreneur's behaviour include qualities of expressing thoughts, activities and values
freely but the entrepreneur should also consider the suggestions and direction of other. Behaviour
of others should not impact the decision of entrepreneur as the unique ideas are not privileged.
Entrepreneur performs functions from the starting to the ending of project. To incorporate
contemporary business like Babylon, feedbacks from user and other employees were given
priority.
The entrepreneur should have the qualities for initiating the activities and to carry the
whole responsibilities. Dr. Ali Parsa carried the increased responsibilities, which came with the
innovative and new technology incorporation. Entrepreneurial behaviour is referred to the way
under which entrepreneur finds out his responsibilities to perform the initiation. Entrepreneur
should have self confidence in regards to the actions which are required to be performed, which
was the key factor for Dr. Ali Parsa's success. Dr. Ali Parsa believed in firmness, when every
person of organisation work together sincerely the difficult task becomes easy and the success
rate increases.
The Dynamic tendencies including the latest technologies, tools and equipments should
be used in business operations by the entrepreneur, especially like the organisation, Babylon. The
entrepreneur have optimum capacity to take decisions in regards to the risks and innovations,
that whether the new healthcare tools are able to provide the desired health outcomes or there is
some change require (Iacobucci, 2020). The in process risk and errors should also be calculated
and evaluated by Dr. Ali Parsa. Flexibility is the speciality of entrepreneur in taking the
decisions as per the time, environment and the circumstances. Entrepreneur is the person who
can bear stress as the process of innovation bring several pains, difficulties and stresses. Various
functions require the action from entrepreneur and the other work place employees, this is the

responsibility of entrepreneur to allocate the work as per the knowledge and experience of
workers. Entrepreneur is also responsible to provide several kinds of motivations to the works
who have difficulties in performing the task or understanding them. The motivating qualities of
entrepreneur decides the success of services and count of users. Entrepreneur should feel
motivated in regards to new activities and new resources for making new improvements. Besides
that, the entrepreneur like Dr. Ali Parsa is required to motivate the other employees to
accomplish their task and do their best. Dr. Ali Parsa can bring the required outcomes by having
the qualities of motivation. Entrepreneurship theories are essential for the development of
contemporary business in Babylon health. Such entrepreneurship theories are:
Economic entrepreneurship theory: The theory explains the economical aspects for the
contemporary business in Babylon health (Iacobucci, 2018). The theory aims to explore the
economical factors which can enhance the entrepreneurial behaviour.
Psychological entrepreneurship theory: The theory analysis the individual, it emphasise
the personal characters like personality traits which define entrepreneurship. Such as the patient's
demographics are the factors for Babylon Health.
Sociological entrepreneurship theory: The theory analysis the society and social
networking. The Babylon Health entrepreneur behaviour requires to consider the social aspects
and should involve market advertisement according to it.
Anthropological entrepreneurship theory: The theory analysis the development,
customs, origin and believes of a community. The Babylon Health is required to consider the
culture of its service users.
Opportunities based entrepreneurship theory: The theory provide conceptual framework
for the research of entrepreneurship, as the Babylon Health requires to conduct a market survey
in order to plan the strategies.
Resources- Based entrepreneurship theory: The theory explains the essentiality of
financial, social and the human resources which are required by every contemporary enterprises
to implement the innovation (Yi, 2021). The Babylon Health entrepreneur needs to look into the
resources which can have impact over the businesses.
Current business model and its suitability with respect to contemporary business pressures
A business model is the structure or plan of an organization including the purpose of
business, desired goals and ways to earn profit. Simply it is the explanation of how a company

deliver its value to the customers at an appropriate cost. It includes market scenario, the target
market, description of products or services and others. There are various types of business
models out of which Babylon Health organization follows subscription business model.
Subscription is the business model in which a customer have to make payment on regular
period of time either monthly or yearly for approaching a product or service. In this business
model customers choose how and till when they want to receive any offer. They are also
provided with options to cancel or renew the subscription anytime (Wuebker, Zenger and Felin,
2021). It could be taken as a contract in between businesses and its customers. And the contract
will end with the completion of recurring payments of customers. They are now able to renew or
cancel their subscription.
Babylon Health provides online services through either with their websites or iOS or
android mobile applications. It is B2B type of business model which benefit both company and
customer. It simply make its clients be available on an online video call, asking them about their
problem and symptom rather than waiting for an appointment. It works with health providers,
government and insurers worldwide. It supports healthcare facilities from local small practices to
hospitals.
As it is known, subscription businesses are for the help of customers wherever they are.
They could get services when they need with a little or no effort. As subscription saves time of
people in waiting for appointment and visiting to the health centre. It improves relationship with
the customers. So it is suitable with respect to business pressure as it creates a future prediction
about the revenue generation. This business model allows a company in ensuring how much
viable the business is. This business model is 217% more profitable for businesses than an
instant payment model (Baabdullah and et. al., 2021). Due to its convenience nature it become
more popular. It regularly keep delivering the product and services to its customer and taking
feedback from them. This is also a reason for its suitability from other businesses. People more
prefer to subscriptions as it is easy to join and easy to cancel. As it is a new and unique
technology, customers are willing to use it at take subscription from it. It is growing sector and
spreading day by day. But there are also some threats for its suitability as the competition is
increasing resulting in higher rate of cancellation. There is regular need for the update in app to
beat the competition. It sometimes become tough to make new innovative updates for the
customers. While the company is serving its 100% to its customers and it regularly use to mange

the data of the customers which will help the company to get an idea about the demand and
requirement of customers. This will make it easy to do necessary changes in the application. It is
also providing discounts and offers to the subscribers so that they could be stable and
recommend their knowns. It will also be a reason of suitability of this business model for the
company Babylon health as it will enhance its customer base. Hence, it is concluded that
subscription business model is good in present scenario and is suitable for different businesses.
SWOT analysis
This is a tool that helps business organisation to evaluate and identify different factors
which can be controlled in order to achieve success by making and implementing strategies
(Ahmed, 2019). It helps the organisation to look for new opportunities and optimise its
performance. SWOT analysis of Babylon is mentioned below:
Strength
 High switching cost
The high switching cost in its products and
service provided by Babylon resulted in high
retention of customers. Due to this the firm has
greater ability to give more focus on customers
needs and wants.
 Effective research and development
Large part of the revenues are spent on the
research and development activities that helps
the respective company develop innovative
products and services. This results in gaining
competitive position within the market.
Weakness
 Slow decision making process
The Babylon health care takes long time period
to implement the decision made by them and at
the time of difficult situation they take too
much time to decide what can be done and how
the problem can be solved. Due to this they
lack in implementing proper strategies.
 Need for greater diversity
Respective company needs to give more efforts
on selection and recruitment process in order to
get more process (Forleo and Palmieri, 2019).
The company should give more focus on hiring
the people who have skills and knowledge.
Opportunities
 Advance technology
Due to the use of advance technology and
software, the chosen company work according
to the needs and wants of the customers and
Threats
 Increasing competition
Increasing competition can hamper the
Babylon health care company's revenue and its
brand image among the market. The company

become more innovative. Through the
company can also create good image and
goodwill with the market as well as in global
platform also.
 Reach to better customers
By expanding the features of the app the
respective company can reach out to new
customers. By launching the features according
to the customers can lead the organisation to
know more customers demands through which
they can gain competitive advantage.
can also loose the loyalty of customers due to
the presence of the competitors.
 Instability
Due to COVID pandemic the company is
facing instability in the operation of the
business. This results in decrease in
profitability as well as performance in the
market.
PESTEL Analysis
This refers to a framework that helps business organisation to develop the strategies by
identifying and evaluating the macro environment in order to achieve the success. The PESTEL
analysis of Babylon health care company are mentioned below:
 Political factor : This factor includes change in tax legislation, government rules etc.
Here the change in government policy can affect the performance of the company
(Friesendorf and Uedelhoven, 2021). Governmental changes can affect the Babylon
health care company as the strategies created by them requires frequent changes and this
can be too expensive.
 Economical factor: Healthcare organisation can be affected through inflation rate,
interest rate,unemployment rate etc. Change in these factors can affect the purchasing
power policies. Increase in inflation rate will lead to the increase in price of products and
services of the Babylon health care company. Due to this the purchasing power decreases
and it affects the profitability of the company.
 Social factor: This factor includes includes change in values, beliefs, demographic
change etc. As the respective company runs its business on online platform so the
changes in needs and preferences of the consumers can affect the growth of the business.
So the company needs to work according to the consumer needs and demands in order to
gain success.

 Technological factor: This factor includes advancement of technology, disruption of
technology etc. Babylon health care company works online so its very necessary for the
organisation to keep upgrading its technology and software so that they can gain more
profits. Technology advancement can affects the overall performance of the company.
 Environmental factor: This factor includes change in climate, use of resources etc. It is
very important for the respective company to make the products and services which are
environmental friendly (Ancla, 2021). As being an online company can lead the company
to gain competitive advantage and provide the services that have no use of plastic. So its
a environment friendly.
 Legal factor: This includes consumer law, employment law, safety law etc. Babylon
health care company follows all the law which can lead in running the business
effectively and efficiently. Due to this they can build good brand image among its
competitors in the market.
Porters five forces:
This model helps the company to know the competition among the market and helps in
developing the strategy in order to build good market image. Porters five forces model of
Babylon health care company are as follow:
 Competitive rivalry: This factor shows the intense of competition in the market. It helps
to know the competitors in the market and implement the strategy accordingly. Babylon
health care company needs to keep on investing on marketing because a little change in
price of the competitors product can make the customers switch to the rival company.
 Bargaining power of suppliers: The suppliers has the power and control to raise the
price and lower the price which can affect the profitability of the business (Visser, 2018).
So, if the Babylon health care have less suppliers then they have more power to fluctuate
the price. So, if the respective company have more supplier then they are in better
position.
 Bargaining power of customers: The power of the customers can have effect on the
price and if they are fewer in number and suppliers are plenty then then switching cost is
high. So, respective company should sell the products which are unique in order reduce
the switching cost so that they can increase the number of buyers.

 The threat of new entrants: It is very difficult for the competitors to join the
marketplace as there are lots of risk involved in it. In order to enter the market the
respective company needs lots of access to the resources and on top of that cost
advantage is required. The company requires proper strategies to create good brand
identity among the market.
 Threat of substitute products: The company should provide customers with the
innovative products in order to gain competitive advantage. The company should also
need to maintain its product quality and price so that customers don't switch to the
competitors product.
Value chain analysis
This refers to the different business activity that helps in formation of a product or
services. This analysis include multiple stages in order to develop or form a product. This helps
the firm to create value that leads in developing greater understanding of competitive advantage.
The value chain can be split into two categories and they are:
Primary activities:
Creation or execution of the products are included in primary activities.
 Inbound logistics: In this activities related to receiving, storing of raw materials are
done. Babylon health care have stores at different places to store the raw materials.
 Operations: Turning raw material into the finished products are done in this stage
(Reddy, Chundakkadan and Sasidharan, 2021). Respective company performs its
operation in an effective manner.
 Outbound logistics: Packing and distribution are done in this stage. Babylon health
care also store finished goods in an appropriate manner.
 Marketing and sales: respective company should make investment in promotion, sales
etc.
 After sales services: Assurance, installation are after service which company should
provide its customers.
Secondary activities:
This activities help the organisation to become more effective and efficient to gain
competitive advantage.

 Procurement: Activities related to raw materials, components etc. the company make
proper use of these resources.
 Technological development: The company should keep on updating its technology in
order to achieve the goals.
 Human resources management: the company should recruit the employees who are
skilled as well as efficient.
 Infrastructure: The company should be able to manage its infrastructure in an appropriate
manner.
Recommendations to ensure sustainability of the organisation
It is recommended that the Babylon health care centre should not use the products or
activities in their healthcare which affects the environment, society and ecology. The
organisation should keep their centre hygiene and sanitised. they should indulge into the activity
which has positive impact on the society and as well as environment (Butkevičius, 2020). The
healthcare centre should focus on the quality treatment and their patients. The activities which
harm their patient should not used in their centres. In order to maintain the sustainability of an
organisation, the healthcare centre should adopt the new technologies which are easy to access
and helps in the organisation to grow. As this is the first online innovative idea which provides
the health facility online. They should conduct all the health related formalities online. They
should also provide the home remedies or tips which can be used to cure the disease. As of now
the people get ill very fast and due to junk food the chances of diarrhoea and pneumonia is
increases. So the company should provide online tips and medics or suggestion on regular basis
which can help to prevent from this disease.
Create a sustainable healthcare culture: in the organisation the institution should plant for
long term which has negative impact on the environment and assist in the fighting against the
climate change. In order to improve the sustainability the company should create a green culture
at their healthcare facilities which influence the employees. They should establish a recycling
policy for improving the sustainability (Sherman and et. al., 2020). Some activities should
perform in order to maintain the organisation's sustainability
 the staff should engaged with all department and occupations.
 The staff should get an opportunity to participate in leadership and decision-making.

Improve energy efficiency and invest in alternative energy sources: At time of largely
dependency on state regulation and city, market factors and availability of resources, this is
possible for a hospital for taking advantage for alternative energy, as any other way for lower
their carbon footprint and grid demand. Investment in renewable energy have to be costly
upfront but environment and financial saving pay off the cost in long term.
Redesign transportation systems to be more eco-friendly: With the fleet of hospital transport
vehicle, staff and ambulances, the transport emission surrounded healthcare facilities were high.
The worldwide cities were beginning for adopt green forms to commute which means redesign a
healthcare transportation system becomes easier in time.
Reduce waste generation and reinvent waste management: The biggest barrier for become a
sustainable clinic or hospital is inefficient and improper disposal for medical waste and supplies.
The hospital alone produces more than five million ton of waste in every year which some more
than half facility of healthcare have adequate disposal waste system (Tun, 2019).
Green purchasing to reduce waste: The hospital have implemented policy of green purchasing
for buying products made of minimal packaging and eco-friendly materials and these can be
reused and sterilized.
Sustainable waste management: Establishment of a sustainable waste management program
puts a limit on a amount of waste in being transferred or incineration to landfills, and this
eliminates unnecessary waste. The program also includes way for improve infectious process of
waste such as thermal disinfection, microwave sanitation and autoclaving. In addition, partner
with local waste facility reduces the distance which take for dispose of waste and associated
emission released (Raghuwanshi and Arya, 2020).
Recommendations to ensure that the organisation remains entrepreneurial
Entrepreneurship is the process of developing, organising and running the business with
the uncertainties to make profit by the individuals and group of individuals. Entrepreneurs makes
the proper use of the available resources which helps the organisation to take competitive
advantages. Entrepreneur also take the business to the new heights by making innovative and
new strategies (Bruton, Sutter and Lenz, 2021). Employee and employer relationship should be
given more focused by the management as this leads in achieving the target more smoothly. Here
the Babylon health provides customer with different types of health care facilities which attracts