Strategic Analysis, Change, and Innovation Report for Bruno Health

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Added on  2022/11/13

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This report provides a comprehensive strategic analysis of Bruno Health, a healthcare system focused on innovation. It examines the company's current strategies, challenges, and value proposition, as well as its external and internal environments through PEST and Porter's Five Forces analyses, and a VRIO analysis of its core competencies. The report highlights Bruno Health's strengths, such as its innovative approach and trained personnel, while also addressing weaknesses like high costs. It explores current and potential collaboration strategies, including strategic alliances and intellectual property protection. A new business model is proposed, along with an assessment of its benefits and the means to address opportunities and threats. The report concludes with recommendations for Bruno Health's future development in the healthcare market.
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Running head: STRATEGY, CHANGE AND INNOVATION
Strategy, Change and Innovation
Name of the Student
Name of the University
Author Note
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STRATEGY, CHANGE AND INNOVATION
Executive Summary
The report focuses on the development of innovation, creativity as well as strategic
management that can be associated with Bruno Health. The key findings from the report are
that the business organisation can help in the development modern and innovative care for
people that require such facilities. The strengths of Bruno Health are the fact that it is highly
innovative and at the same time consist of trained employees. The recommendation that can
be provided to Bruno Health is based on the analysis of its weakness. Bruno Health need to
ensure that the high priced innovative materials be avoided in terms of purchasing so that
budget can be maintained. At the same time, it is essential that Bruno Health make
collaborations with the competitors so that it can enhance its strategies and ensure
development of the planned actions necessary for its practises in the business market.
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STRATEGY, CHANGE AND INNOVATION
Table of Contents
Introduction................................................................................................................................3
Purpose of the report..............................................................................................................3
Focus of the report and director..............................................................................................3
Structure of the report.............................................................................................................3
Background................................................................................................................................4
Bruno Health’s current strategies...........................................................................................4
Issues, challenges and problems.............................................................................................4
Current organisational challenges and value proposition.......................................................4
Current business model..........................................................................................................5
Strategy analysis.........................................................................................................................6
External...................................................................................................................................6
PEST analysis.....................................................................................................................6
Porter’s analysis..................................................................................................................6
Internal....................................................................................................................................7
Key resources......................................................................................................................7
Strengths and weakness......................................................................................................8
Core competencies..............................................................................................................8
Collaboration strategies............................................................................................................11
Current collaboration strategy..............................................................................................11
Strategic alliances.............................................................................................................11
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STRATEGY, CHANGE AND INNOVATION
Joint venture arrangements...............................................................................................11
Supplier relations..............................................................................................................11
Licensing arrangements....................................................................................................11
Outsourcing arrangements................................................................................................12
Future collaborations needed................................................................................................12
Intellectual Property protection................................................................................................12
Current Intellectual Property of Bruno Health.....................................................................12
Additional Intellectual Property strategies...........................................................................12
Benefits of the Intellectual Property.....................................................................................13
Disadvantages of the strategy...............................................................................................13
New business model.................................................................................................................13
Benefit of the new business model.......................................................................................15
Link of key partners with collaborative strategies...............................................................15
Means to address opportunities and threats..........................................................................15
Bibliography.............................................................................................................................17
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STRATEGY, CHANGE AND INNOVATION
Introduction
Purpose of the report
The purpose of the report is to identify the strategies, changes and innovation that are
undertaken by Bruno Health, a healthcare system providing inspiring innovation. The
strategic analysis of the company is done by identifying the internal and external factors that
affect the organisation. As stated by Dichter (2017) in the modern world, collaborative
strategies are required to be maintained so that proper managerial decisions can be taken and
at the same time, information related to the strategies that are applied at the organisations be
maintained.
Focus of the report and director
The report emphasizes on the application of these strategies on Bruno Health in its
quest to remain a dominant Australian health company. The Director of Bruno Health is
Zachary Nielsen, a passionate and dynamic leader with an affinity for unique and innovative
business model (Brunohealth.com.au 2019).
Structure of the report
The structure of the report consists of providing a background of Bruno Health, which
include the issues and challenges faced. The strategic analysis of Bruno Health is undertaken
in both the external and internal factors. At the same time, collaborative strategies are
identified with focus also on the Intellectual Property Protection used by Bruno Health. A
new business model is provided which can help in addressing opportunities and threats of
Bruno Health.
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STRATEGY, CHANGE AND INNOVATION
Background
Bruno Health’s current strategies
The current strategies that are undertaken by Bruno Health includes providing proof
of the concepts that exist in the field of medicine and to build trust of the people undergoing
medical facilities and take measurements about the factors that require learning
(Brunohealth.com.au 2019). At the same time, it analyses the positive and negative features
about the use of the application in trying to cure patients (Brunohealth.com.au 2019). Disrupt
marketing can be considered as an aim for Bruno Health to launch its business towards the
future (Brunohealth.com.au 2019).
Issues, challenges and problems
The issues, challenges and problems that are faced by Bruno Health include
unaffordable prices of the products that they are currently undertaking along with the lack of
accessibility (Brunohealth.com.au 2019). This is mainly because of the fact that Bruno Health
aims to be involved in disruptive marketing and hence, tend to undertake research that may
be beyond its capability in order to increase its popularity (Brunohealth.com.au 2019). At the
same time, lack of patient-centred care is another problem that Bruno Health faces in the
healthcare industry (Brunohealth.com.au 2019).
Current organisational challenges and value proposition
The current organisational challenge that Bruno Health faces includes the on-boarding
process associated with the patients and service providers along with building trust as well as
marketing of the brand. This is a major issue since Bruno Health is still at a developing stage
having set up its business a couple of years ago (Brunohealth.com.au 2019). At the same
time, challenges due to the lack of ability to provide home treatment accounts for the problem
of Bruno Health (Brunohealth.com.au 2019). However, the value proposition of Bruno
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STRATEGY, CHANGE AND INNOVATION
Health includes quality, affordability and accessibility along with unique and difficult to
innovate products and services (Brunohealth.com.au 2019).
Current business model
Key Partners
Ability centre
Silver Chain
Therapy focus
Rt Health
Key Activities
Develop a
patient centred
approach
Organised
logistics
Value
Proposition
Quality
Affordability
Accessibility
Customer
Relationships
Customer
centric
Provides value
to the customers
Customer
Segments
People
requiring
medical
attention of any
type
Key Resources
Modern
equipments
Trained
personnel
Channels
Websites
Newspapers
Social media
Cost Structure
Cost for third party payment to protect
privacy of information
Revenue Streams
Cashless
Free of services
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STRATEGY, CHANGE AND INNOVATION
Market analysis costs
Wages
Computer expenses
Premium subscription
Health funds
Strategy analysis
External
PEST analysis
Political Political reforms to reduce the health care reimbursement costs
Approval of the Government to many medicines (Hitt and Ireland 2017)
Economic Strong negative impact on the economic downturn of the market
Development of large laboratories
Social Increase self medication system
Providing a patient centred care (Pugh 2016)
Technological Increase cost of research and development
Disruptive innovation and marketing of medicines
Table 1: PEST analysis
(Source: Brunohealth.com.au 2019)
Porter’s analysis
Bargaining power of buyers The hospitals and clinics along with the physicians are the buyers and
the power sustained by them is high for the development of Bruno
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STRATEGY, CHANGE AND INNOVATION
Health (Brunohealth.com.au 2019)
Bargaining power of suppliers Various small suppliers along with giant pharmaceutical companies are
the suppliers (Lasserre 2017). However, lack of innovative nature
provides less threat for Bruno Health
Threat of substitutes Substitute power is low since not much innovative drugs can be formed
which can counter the development of the medicine and supplies that
are served by Bruno Health (Brunohealth.com.au 2019)
Threat of new entrants New entrants threat can be considered as low since the price of
purchasing new facilities, research and development as well as
innovative strategies may cost a low which can be difficult for new
companies to consider (Grant 2016)
Threat of rivals Global competitors in the market are high along with a rush of the
research and development facilities. Competitors include home
services, allied health clinics, health insurers and so on
Table 2: Porter’s five-force analysis
(Source: Brunohealth.com.au 2019)
The analysis shows that the attractiveness of the industry lies in its innovative nature
and the ability to develop a framework that can take into account the attractiveness of the
patient centred care approach. Positive and negative influences of each of the factors help in
understanding the strengths and weakness of Bruno Health.
Internal
Key resources
The key resources of Bruno Health include the use of modern equipments for treating the
patients. This can provide Bruno Health with the ability to treat its clients in a more unique and
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STRATEGY, CHANGE AND INNOVATION
effective manner. At the same time, trained personnel are also considered as the key resources for the
development of Bruno Health (Brunohealth.com.au 2019). This is mainly because the trainer
personnel can provide experienced services, which can protect and identify the health of the
people. Thus, it can be said that the key resources can be considered as critical success factor
for Bruno Health (Brunohealth.com.au 2019).
Strengths and weakness
Strengths and weaknesses of Bruno Health can be highlighted based on the key
resources that exist. These include:
Strengths The strengths of Bruno Health are that it has been able to develop its business in
a competent manner in only two years (Brunohealth.com.au 2019). The current
strategies of the business can be accounted for the development of its future and
the fact that it consists of trained personnel and ability to be innovative provides
Bruno Health with an advantage in the business (Brunohealth.com.au 2019)
Weakness The weakness of Bruno Health is the fact that the equipments purchased can be
costly and thus, the support from the Government may be lost due to excessive
prices. Along with this, reputation in the market is a necessity for Bruno Health
(Brunohealth.com.au 2019)
Table 3: Strengths and weakness
(Source: Brunohealth.com.au 2019)
Core competencies
VRIO
Resource or
capability
Valuable Rare Imitable or
non-
Organised
or exploit
Impact on
competitive
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STRATEGY, CHANGE AND INNOVATION
substitutable advantage
Modern equipment Yes Yes Yes Yes
Realised
sustainable
competitive
advantage
Trained personnel Yes No No Yes
Realised
competitive
parity
Ability to retain
employees Yes No Yes Yes
Realised
temporary
competitive
advantage
Table 4: VRIO analysis
(Source: Brunohealth.com.au 2019)
Requirement to develop more core competencies
The core competencies can be developed by identifying the manner in which Bruno
Health can continue with the development of its key resources. Support from the key partners
is a requirement for Bruno Health so that proper collaboration can be made between the
parties and thus, the competencies can be developed (Brunohealth.com.au 2019). At the same
time, Bruno Health can constitute the development of a unique and valuable training service,
which can help in specialising the employees in the use of the care facilities. The
organisational challenges of Bruno Health can be mitigated by evaluating its strengths and by
overcoming its weakness (Brunohealth.com.au 2019). This can be considered as a proper
methodology for meeting the core competency of the business.
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STRATEGY, CHANGE AND INNOVATION
Method to develop core competencies
The method that can be adopted for the development of the core competencies in the
business includes developing the internal capabilities. From the analysis, it can be seen that
the strengths of Bruno Health lies in the fact that the business is innovative and consists of
trained personnel (Brunohealth.com.au 2019). At the same time, weakness in the form of
unable to gain access of the new technologies may weigh down the development of Bruno
Health (Brunohealth.com.au 2019). Hence, methods such as effective application of the lack
of imitatibility of its products can be considered as effective for Bruno Health. At the same
time, ensuring that the products and services cannot be imitated can lead to the rise of
competency in the health care market of Bruno Health (Brunohealth.com.au 2019).
Dynamic capabilities of Bruno Health
The dynamic capability event of Bruno Health can be associated with the fact that it is
essential for Bruno Health to make key partners available for the development of its
resources. The core resources that are available for Bruno Health need to be developed and
utilised for the proper promotion (Brunohealth.com.au 2019). At the same time, it is essential
that the dynamic capabilities of Bruno Health align with the strengths it possess so that it can
ensure core resources be used for gaining the potential required in strengthening its
competencies in the business (Brunohealth.com.au 2019). Thus, it can be said that future
strategies such as use of Stream line model as well as block chain can be considered as
dynamic capability events for Bruno Health (Brunohealth.com.au 2019).
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