University Strategic Analysis Report: Estia Health Aged Care Company

This report provides a strategic analysis of Estia Health Aged Care, a company operating in the Australian healthcare industry. The analysis employs various strategic management tools, including PESTEL, Porter's Five Forces, SWOT, and VUCA frameworks, to evaluate the company's position, challenges, and opportunities. The PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors influencing Estia Health. Porter's Five Forces assesses the competitive dynamics within the aged care industry, while the SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report also includes a VUCA analysis, examining the volatility, uncertainty, complexity, and ambiguity factors impacting the company. The findings provide insights into Estia Health's strategic capabilities and offer recommendations for achieving a competitive edge in the aged care market. The report concludes by summarizing the key findings and implications of the strategic analysis, emphasizing the importance of adapting to the industry's evolving landscape and maintaining a focus on quality care and operational effectiveness.

Running head: STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Strategic Analysis of Estia Health Aged Care
Name of the University:
Name of the Student:
Authors Note:

1STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Executive Summary
The objective of the paper was to carry out strategic management analysis on Estia
Health Aged Care Company through carrying out PESTEL, porters five forces, VUCA and
SWOT analysis. It was gathered from the paper that SWOT analysis of Estia Health Limited
facilitated in realizing the position of the company in the industry along with challenges faced by
the company for developing strategic recommendations in attaining competitive edge. Strategic
capabilities analysis of Estia Health Limited explained anything that the company has or learned
to do so that it can develop effective strategies in enhancing its operational effectiveness.

2STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Table of Contents
Introduction..........................................................................................................................3
PESTEL Analysis................................................................................................................3
Porters Five Forces Analysis...............................................................................................6
SWOT Analysis...................................................................................................................8
Conclusion...........................................................................................................................8
References..........................................................................................................................10
Appendices........................................................................................................................12

3STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Introduction
Estia Health Aged Care Company belongs to healthcare industry is involved in the
development and operation of owned along with leased residential care homes within Australia.
For over years the company is engaged in developing and operating leased and owned residential
aged cared facilities within Australian market (Towart 2017). The company has more than 68
facilities within 5,910 operating places within South Australia, New South Wales and
Queensland. The company initiated its business in the year 2005 within Australian market
(EstiaHealth., 2018). The company has a strategic priority of operating in a successful market
and offering a range of care services from offering semi-independent living. The company also
has a strategic aim to attain high success in the health care industry in offering personal
assistance, meals, and therapies along with lifestyle activities (Rothaermel 2015). The objective
of the company is to develop specialized healthcare teams and offer inclusive along with caring
experience. The mission of the company is to make sure that it carries a proud heritage of
offering superior healthcare service all through the nation. Vision of the company is to maintain
a shared commitment of offering quality resident based services and clinical care. It is also
assumed that the aged care industry environment factors and its impact on the company is
deemed to have an impact on its position in the marketplace.
PESTEL Analysis
Political- Fact: In investing or entering within a particular market, the company must be aware
of all its political and system risks. The Agent Care Pricing Comissioner (ACPC) is a statutory
and independent office holder that is appointed based on Aged Care Act and reports to aged care
minister (Ginter, Duncan and Swayne 2018).
Implication: Such political factors that must be considered are risk of military invasion,
intellectual property protection, work regulations, pricing regulations and favored trading
partners. Companies that are operating in the healthcare industry require attaining pricing
approval from ACPC before mentioning price range within its brochures.
Impact: High/ Medium

4STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Economical- Fact: The social structures of Estia Health Limited are not self-ruled or financially
independent. Support and control are maintained by Ministry of Aged Health. The local
structures are deemed to operate at low cost per capita that is lower than having to offer close
aged care to people.
Implication: There can be drastic implication of inflation, growth rate along with
economic indicators such as healthcare services and equipment industry growth rate on the
company (Wheelenet al. 2017). Estia Health Limited can also consider consumer spending,
government intervention within free market and economic growth rate to have implication on the
business.
Impact: Medium/ High
Social- Fact: Increasing aging population includes a huge baby boomer generation that accepts
increased pressure on Australian economy. This has also resulted to changes in aged care
expectations and preferences.
Implication: Shared attitudes and beliefs of the population have a major role in the way
marketers at Estia Health Limited will understand its consumers in a specific market. Emerging
aging population can impact the company can include skill level of the population, culture and
attitudes of consumers on environmental consciousness.
Impact: Medium
Technological- Fact: In the recent years, vast information proliferation, communication
technologies and widespread internet diffusion integrates new technologies within the aged care
along with health care policies. Adoption of e-health initiatives offers innovative approaches in
certain areas of aged care.
Implication: Implications of the facts consider that the company musttake into account
rate of technological diffusion and cost structure impact on aged care services and equipment
industry (Morden 2016).
Impact: High

5STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Environmental- Fact: Green information technology is being adopted greatly within the aged
care industry. Considering the same Estia Health Limited have considered that political
imperatives can be attained by the company electronically.
Implication: Certain environmental factors that can have implications on the company
include water and air pollution regulations within health care services and equipment industry
and attitudes toward and support for renewable energy.
Impact: Low/ Medium
Legal-Fact: Introduction of clinical safety directives along with legislation on aged care medical
advice has facilitated the company in dealing with several issues. The set of related laws and
policies offers an opportunity for selling consultancy.
Implication: Certain legal implications must be considered by the company before
entering foreign markets that can result in theft of its competitive advantages. These implications
include anti-trust law within health care services and equipment industry, discrimination law and
health and safety law (Barbara et al.2017).
Impact: High
VUCA for the factors those have high ratings are explained under:
Legal
Volatility- Aged care based laws and policies do not change regularly. This happens through
policy makers’ obligations. The federal and state governments focus on maintaining the
necessary changes in policies.
Uncertainty- Policy setters consult constituents while taking any suggestion regarding the
policies. Laws might not have a prompt impact to deal with threats and bring in opportunities.
Complexity- A very complex structure is involved that includes strictly regulated laws that
highly rely on the government structure.
Ambiguity- As every individual stay informed, there is no lack of knowledge in the areas of
regulations and policies.

6STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Technological
Volatility- There is a use of supportive technologies in order to offer better care for aged
people in their own place serves as a concern that is promoted for years.
Complexity- The advanced technological surrounding is quite complexto be used for
offering up-to-date and sophisticated aged health care services.
Uncertainty- Bridging the gap is needed between technological reality that is available on
one side and non-existenttechnological abilities of program’s structures.
Ambiguity- There is a huge integration in the new technologies such as e-health in aged
health care sector at the forefront of added care policies (Abs.gov.au. 2018).
Porters Five Forces Analysis
Porter’s five forces Analysis of Estia Health Limited will analyze the considerableimpact of
the five forces on a company’s profitability within which the industry operates.
The aspects of this analysis for the company are explained under:
Threat of new entrants

7STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Fast industry growth rate has a considerableimpact on the aged care industry and the
company. There is a hence that the company might attain market share from all its competitors as
the total industry size is growing (Papastergiouet al.2017).
Bargaining power of suppliers
This power might have decreased because of the reason that increased government
regulation because of ACPC that can decrease negotiable options.
Bargaining power of buyers
Bargaining power of institutional buyers with increased government regulation because
of ACPC thatdecreasesattractiveness of alternative derivatives. Customer direct care program
implementation decreasedtheir switching costs.
Threats of substitute services of products
Threat of substitutes can be observed from the care offered within retirement village.
This threat is dealt by Estia Health Limited through offering home care packages along with
Commonwealth Home Support Program.
Rivalry among the existing competitors
The Companyoperates within highly competitive Aged Health Care services industry
that can impact the profitability of it (Lamas et al.2017). Competition is deemed to be low
because of strict government control over supply and pricing.

8STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
SWOT Analysis
Certain opportunities are identified to be attained by on Estia Health Aged Care
Company on the basis of PESTEL and Porters Five Forces Analysis. There is an increased
chance of strengthening and better use of resources with other social structures. Relationships
with other structures can be strengthened and expanded that facilitates wider cooperation, good
practices exchange along with joint actions and initiatives.
Certain threats are identified to be attained by on Estia Health Aged Care Company on
the basis of PESTEL and Porters Five Forces Analysis.Increased regulation on Ministry of Aged
Health can increase the costs associated with the company that can serve as barrier to entry in
case the company intends to expand in international market. A great focus on cost-cutting might
leave the company vulnerable because of crippling lawsuits in case there is subpar added care or
harsh working conditions.
Conclusion
The objective of the paper was to carry out strategic management analysis on Estia
Health Aged Care Company through carrying out PESTEL, porters five forces, VUCA and
SWOT analysis. It was gathered from the paper that SWOT analysis of Estia Health Limited
St ren
gt hs
Weak
es ses
Th re
at
Opportunities

9STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
facilitated in realizing the position of the company in the industry along with challenges faced by
the company for developing strategic recommendations in attaining competitive edge. Porter’s
five forces Analysis of Estia Health Limited was analysis the considerable impact of the five
forces on a company’s profitability within which the industry operates.

10STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
References
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Abs.gov.au., 2018. Australian Bureau of Statistics, Australian Government. [online] Available
at: http://www.abs.gov.au/ [Accessed 30 Mar. 2018].
Anton, R., 2015. An Integrated Strategy Framework (ISF) for Combining Porter's 5-Forces,
Diamond, PESTEL, and SWOT Analysis.
Barbara, C., Cortis, D., Perotti, R., Sammut, C. and Vella, A., 2017. The European Insurance
Industry: A PEST Analysis. International Journal of Financial Studies, 5(2), p.14.
Estia Health., 2018. Estia Health Aged Care: Australian Aged Care | Aged Care Facilities |
Residential Aged Care Facilities | Nursing Homes. [online] Available at:
http://www.estiahealth.com.au/ [Accessed 30 Mar. 2018].
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may conveniently widen well beyond its apparently narrow focus.

11STRATEGIC ANALYSIS OF ESTIA HEALTH AGED CARE
Papastergiou, J., Diamantouros, A., Davidson, S., Saltmarche, D., Waterloo, K. and Mart, S.D.,
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