Indira IVF: Detailed Business Level Strategy Analysis Report

This report presents a comprehensive analysis of Indira IVF's business-level strategy. It begins with an industry analysis, employing Porter's Five Forces and PESTLE analysis to assess the external environment of the Indian IVF industry. The report then shifts to an organizational analysis, utilizing the VRIO model and competitor analysis to evaluate Indira IVF's internal resources and competitive positioning. Key findings include the low bargaining power of buyers, moderate threats from new entrants, and the importance of skilled human resources, leadership, and organizational culture as competitive advantages. The analysis highlights the impact of political, economic, social, technological, legal, and environmental factors on the IVF industry's growth. The report concludes with recommendations for Indira IVF to strengthen its competitive edge in the market.

Business level strategy

Table of Contents
Introduction................................................................................................................................1
Industry analysis.........................................................................................................................1
Porters five forces..................................................................................................................1
PESTLE analysis....................................................................................................................3
Organization analysis.................................................................................................................6
VRIO model...........................................................................................................................7
Competitive positioning through Competitors analysis.............................................................8
Recommendations......................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
List of tables
Table 1: PESTLE analysis of India............................................................................................3
Table 2: VRIO analysis of Indira IVF........................................................................................7
Table 3: Competitors analysis of Indira IVF..............................................................................8
List of figures
Figure 1: Porter's five force analysis of the Indian IVF industry...............................................3
Figure 2: Growth of GDP in India.............................................................................................6
Figure 3: Growth in the disposable income in India..................................................................6

Introduction
The business-level strategy is significant for the growth of an organization because it
shapes the strategic action which offers value to the customer and contributes in gaining
competitive advantages (Parnell, 2010; De Wit and Meyer, 2010). However, the several
factors related to the internal and external environment highly influence the business level
strategy that forces to increase the focus on these factors (Babatunde and Adebisi, 2012). In
this context, the present report is based on the detailed analysis of the internal and external
environment of Indira IVF. For this purpose, PESTLE and Porter’s five force model have
been applied to assess the condition of the macro environment. Further, the internal
environment has been evaluated with the help of VRIO model and competitive positing
analysis. Apart from this, the recommendations have been provided to Indira IVF to increase
the competitive edge through strategic response.
Industry analysis
Porters five forces
In the contemporary scenario, the large number of couples face the infertility issue
because the stress, pollution, urbanization and inappropriate lifestyle adversely affects their
health (Business Standard, 2017). In this context, the IVF (In-Vitro- Fertilization) technique
provides an opportunity to infertile couples to enjoy parentage, which contributes to
continuous growth. It is estimated that this industry will grow up to $ 775.9 million by 2022.
(Pandit, 2018). In this context, the detailed overview of the industry provides using different
elements of Porter’s five forces analysis which are mentioned below.
Bargaining power of buyer- The high bargaining power of buyer forces the businesses to
shape the services accordingly (Dobbs, 2014). However, the public goes for IVF treatment
when they need a child and they do not have an option to become parents which decreases
their bargaining power (Pandit, 2018). Although, consumers have a high level of attachment
with this type of services that forces the firm to shape the services according to the need of
specific patients (Lee, Kearns and Friesen, 2010). Therefore, the bargaining power of the
buyer in the IVF sector is low.
 Bargaining power of supplier- The specific tools and equipment are crucial to
delivering care services which positively affect the bargaining power of suppliers
(ETHealthWorld, 2019). The IVF purchases the products from those suppliers who
provide the quality equipment to render the prompt the services. It gives power to the
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supplier bargain for the cost of equipment which harms the operational efficiency
(Dobbs, 2014). It further increases the value of IVF treatment that prevents the public
from using it.
 Treats from new entrants- The enhancement in new entrance increases the
competition in the business because several firms are available to deliver the same
type of services (Dobbs, 2014). In this context, the growing potential of the market
has a positive impact on the new entrance (Owler, 2019). In the same manner, the IVF
organization faces high threats from new entrants which decrease the market share of
an existing business. It can also affect the IVF organization in future by creating great
competitions. However, the Indira IVF has a leading position in the industry that
creates a positive brand image which moderates the impact of the new entrance
(Owler, 2019). Thus, Indira IVF faces moderate threats from the new entrants.
 Threats from substitute- The product and services are easily substitutable by the
other businesses; then it will create a considerable risk by increasing consumer's
switching (Business Standard, 2017). However, IVF services are not substitutable by
the other services providers, which decreases the threats from the substitutes. It has a
positive impact on the growth of the organization by enhancing the involvement of
consumers.
 Competitive rivalry- The constant growth of the IVF industry in India encourages
health care firms to diversify the services by providing IVF treatment to the needed
patients (Business Standard, 2017). It increases competition in the marketplace by
enhancing several rivals. For instance, the Nova IVI, Motherhood, Cloudnine are the
dominant players of the industry that creates barriers in the growth of Indira IVF in
India (Owler, 2019). It shows that the increased competitive rivalries in the IVF
industry may affect the business growth in future.
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Figure 1: Porter's five force analysis of the Indian IVF industry
PESTLE analysis
Table 1: PESTLE Analysis of India
Factors Description
Political  Stable political condition
 Government promotes the IVF
industry by launching Matrutva
Yojana
Economical  Increased GDP (refer figure 1)
 Emerging market trend enhances the
disposable income (refer figure 2)
Social  High demand for IVF due to infertile
couple.
 Poor reproductive health (Business
Standard, 2017)
 Lack of knowledge of innovative
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Competitive
rivalry (High)
Bargaining
power of
supplier
(High)
Bargaining
power of
buyer (Low)
Threats from
new entrants
(Moderate)
Threats from
substitute
(Low)

health care services
Technological  Technological advancement in
health care
 Public changes their perception of
technology (ETHealthWorld, 2019)
Legal  Several legal obligations
such as Assisted
Reproductive Technology
(Regulation) Bill-2013 and
2014 (Devi, 2016)
 Strong legislation for
surrogate mother and egg
donation
Environmental  High focus to protect the
environment from medical waste.
 Ethical use of IVF technology (Devi,
2016)
According to the above table, the macro environment of India has a high impact on
the growth of the IVF industry. In this context, the different affecting factors of the external
environment are mentioned below.
 Political and economical:- As mentioned in table1, the political condition of India
which focuses on the development of public health. Further, the Indian government
supports the IVF industry by providing fundings through Matrutva Yaojanqa to those
couples who do not have a child (refer table 1). It encourages the lower and middle-
income group to get facilities from IVF. Although, the GDP of India is continuously
growing that increaes the spending of the public on health care (Statistics Times,
2019). Similarly, the emerging maket increases employment in the country, which
has a positive impact on their lifestyle. It consequently increases their disposable
income which has a positive effect on the business by increasing the sales of product
and services (Fornell, Rust and Dekimpe, 2010). It reveals that the political and
economic condition of India is in favour of the IVF industry and provides an
opportunity to grow the business by making a comfortable operating environment.
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 Social and technological – The polluted environment affects the health of the
individual that harms their reproductive health (Business Standard, 2017). It increases
the demand for IVF technology to become a parent. The increased demand has a
positive impact on the growth of the IVF industry. Further, technological
advancement develops the health care sector of India that has a positive effect on the
growth of the health care business because they opt for new techniques of treatment.
It further helps in delivering quality health and care services to clients (Business
Standard, 2017). In this context, the quality care services change the perception of the
public for care technology and encourage them to use it for caring for their
reproductive health. It makes the favourable environment for IVF organization to
deliver the services to a large consumer base. However, the lack of knowledge about
the new health care technology in the rural areas adversely influences the IVF
companies (refer table 1). Therefore, the social and technological aspect is in favour
of the IVF industry, but some issues like lack of knowledge have an adverse impact.
 Legal and environmental- The government of India imposes several regulations on
the health care organizations to provide quality services to the patients. In this
context, the government launched Assisted Reproductive Technology (Regulation)
Bill-2013 and 2014 that makes several restrictions on the IVF firms to provide the
reproductive care services in an ethical manner (Devi, 2016). Further, the
government also imposes the rules for appropriate disposal of medical waste and
hygiene of medical equipment (refer table 1). It forces the health care firm to put the
focus on these aspects. Thus, Legal and environmental factors have a high impact on
the operation of IVF centres.
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Figure 2: Growth of GDP in India
(Source: Statistics Times, 2019)
Figure 3: Growth in the disposable income in India
(Source: Trading economics, 2019)
Organization analysis
The internal environment is assessed by using the VRIO and competitors analysis
model, which are as follows.
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VRIO model
Table 2: VRIO analysis of Indira IVF
Resources Valuable Rare Non-
imitable
Non-
substitutable
Competitive
advantages
Technical Yes No Yes Yes Unused
competitive
advantages
Human
resources
Yes Yes Yes Yes Sustainable
competitive
advantages
Ability to
provide
quality
services
Yes No No Yes Temporary
competitive
advantages
Cost-effective
services
Yes No No No Competitive
parity
Leadership Yes Yes Yes Yes Sustainable
competitive
advantages
Organizational
culture
Yes Yes Yes Yes Sustainable
competitive
advantages
(Source: Indira IVF, 2019a; Owler, 2019; Dhanjal, 2019; Indira IVF)
According to the above table, the Indira IVF has advanced technical Infrastructure
that provides it with the unused competitive advantages (Indira IVF, 2019a). It is because this
is valuable but not rare, which creates a barrier in providing sustainable competitive
advantages. Due to this, Indira IVF must increase the technical resources to gain sustainable
competitive advantages. However, the firm has competent human resources that help in
delivering quality IVF treatment to the patients (Owler, 2019). It increases consumers’
satisfaction and improving brand popularity. It further provides the sustainable competitive
advantages that help in long term growth (Fornell, Rust and Dekimpe, 2010). It shows that
skilled human resources are the fundamental strength of Indira IVF. Further, the firm
provides quality services to the customers, but it is also provided by the other firms that
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provoke them to gain sustainable competitive advantages (refer to table 2). Although, the
business has a competent leader that brings the company in an upward direction. The leader
makes the appropriate strategies that increase the productivity of the employees as well as
improves the organizational performance by delivering quality services in an efficient manner
(Owler, 2019). Moreover, the organization provide the consumer services on affordable price
that attract the couples to take IVF treatment. However, it is not offered with the long-term
benefits to the firm because the other firms can copy it. On the other hand, the organizational
culture of Indira IVF positively influences the wellbeing of employees. The employees feel
motivated that reflects in their productivity and willingness to perform their responsibility
(Glassdoor, 2019). Further, the firm motivated the worker by rewarding them which enhance
their intrinsic and extrinsic motivation. In this context, Edirisooriya (2014) asserted that
rewarding encourage the workforce to achieve the performance goal and contributes to the
development of business. It further increases the retention of employees that increase the
competitive edge of industry. It reveals that competent human resources, leader,
organizational culture are the key factors that provide a competitive advantage to Indira IVF.
Competitive positioning through Competitors analysis
Table 3: Competitors analysis of Indira IVF
Function Indira IVF Cloudnine Nova IVI Motherhood
Marketing 5 3 3 3
Human
resources
4 2 1 1
Revenue 4 2 3 2
History 5 4 2 2
Score 18 11 9 8
(Note: 5 denotes the highest score and one denotes for lowest score)
As per the above table, Indira IVF collaborates with different firm to promote brand
awareness among the public (Exchange for media, 2018). It differentiates the organization
among the competitors because the expert team manage the marketing activities. It facilitates
with several benefits to the organization by making appropriate marketing strategies as well
as providing an opportunity to enhance the core operation (Lovelock and Patterson, 2015). It
further supports to deliver high-quality consumer services. However, the competitors are not
having adequate focus on the marketing activities as Indira IVF, which negatively affects
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awareness of the brand among the population (refer table 3). In this context, McDaniel and
Gates (2013) stated that marketing is the key to business success because it promotes
products and services among the targeted customers. It reveals that the collaboration with
expert firm differentiates the marketing operation of Indira IVF in comparison to its rivals.
Apart from this, Indira IVF has approx. One thousand eight hundred employees which help in
deliver to prompt services to the customers (Glassdoor, 2019). The competitors are not
having enough human resources, which creates an issue in providing IVF treatment. It makes
a unique position in the market (Balakrishnan, 2019). However, the demand of IVF treatment
is high and it is also estimated that it will rapidly grow in future which creates the issue to
providing effective IVF treatment to the customers (Business Standard, 2017). Due to this,
the organization needs to increase Human resources to meet the increasing demand.
Therefore, strategic marketing and human resources create competitive positioning; but
significant focus on enhancing human resources is crucial.
Indira IVF generates the revenue of around $ 8 million, which is double from its
competitors, e.g. its rivals have about 4 to 5 Million-dollar income (Glassdoor, 2019). The
increased revenue facilities the organization to expand the business and reach a large mass of
the public. It also provides an opportunity to enhance investment in innovation, which
increases the quality of services. Apart from this, Indira IVF has early adopter of IVF
technology as it was found in 1988. It creates the competitive position of the brand and
promotes the customers' satisfaction. It is because the patients are highly involved with
maternity treatment and give priority to those firm that has long experience in this field. On
the flip side, the firm gets the high score in the competitor analysis by comparing with its
competitors (refer table 3) It is because its competitors are new in the market and not have
enough experience as Indira IVF which forces the patients to select the Indira instead of
others. Owing to this, high expertise in this field and increased revenue differentiate the firm
from its competitors.
Recommendations
As per the above analysis, it has been found that low consumers’ awareness harms the
growth of Indira IVF. For this purpose, it is recommended that an organization should
increase marketing activities in the rural area that helps to attract potential customers.
Further, the firm should increase the innovativeness of its services that positively contributes
to creating a unique identity among the rivals. Apart from this, Indira IVF can develop the
technical infrastructure that increases the quality of services and sustain competitive
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advantages. For this purpose, the organization can purchase the new equipment and provide
training to the employees to efficiently use these technologies. On the other hand, the
organization should increase the attention to hiring the more employees and practitioner to
meet the increasing market demand. Moreover, the firm can also provide training to their
employees which will support them to face high workload and deliver the prompt services to
the customers. Therefore, these recommendations will be beneficial for Indira IVF in the
future and sustain long term competitive growth.
Conclusion
On the basis of the above report, it has been concluded that the internal and external
environment has a high impact on the business. It provides an opportunity for growth as well
as creates barriers. In this regard, the high competition and supplier power are the main
concern for Indira IVF because adversely influence the business as found in Porter's five
forces analysis. Further, the Pestle analysis shows that the political and economic condition
of India is in favour of business growth. However, the lack of customers' knowledge and high
regulation affects the Indira IVF to shapes its strategies. Apart from this, it can be concluded
that resources strengthen the organization which reflects in employees’ performance and
quality of services. Moreover, the firm gets a high score in the competitors' analysis that
makes the competitive positioning of the brand.
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