Strategic Analysis of Regis Aged Care: Business-Level Strategy Report

This report presents a strategic analysis of Regis Aged Care, an Australian aged care provider. It begins with an introduction to strategic management, followed by a background of Regis Aged Care and its services. The core of the report involves a macro-environmental analysis using the PEST framework, examining political, economic, social, and technological factors impacting the company. This is followed by an assessment of key opportunities and threats, such as government funding, expansion possibilities, and the threat of competitors and regulations. Furthermore, the report applies Porter's Five Forces model to analyze the competitive landscape, evaluating the threat of new entrants, bargaining power of buyers and suppliers, the intensity of competitive rivalry, and the threat of substitutes. The analysis leads to a concluding summary of the company's strategic position within the residential aged care industry in Australia, referencing the provided sources.

Strategic Management

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Contents
Introduction.................................................................................................................................................2
Background of the company........................................................................................................................2
Macro-environmental Analysis...................................................................................................................3
PEST Analysis.........................................................................................................................................3
Key factors of opportunities and threats..................................................................................................4
Porters Five Forces Model...........................................................................................................................5
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

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Introduction
The procedure of examining and summarizing the business environment to implement the
business strategy to gain the competitive advantage is known as strategic management. There are
many techniques and frameworks of strategic management that can be used by the company to
inspect the external and internal factors affects the business such as PESTLE Analysis, SWOT
Analysis, Porters Five Forces Frameworks and many others (Ansoff, et. al, 2018). In this paper,
the discussion is made on the topic of “ strategic management”. Regis Aged Care has been taken
into consideration to examine the macro-environment that affects the business.
Background of the company
Regis Aged Care is an Australian largest aged cared provider. It provides the various facilities to
clients to help them in living their life as per their own terms. Bryan Dorman and Ian Roberts are
the owners of the company. Respite care, Ageing-in-place, specialist dementia care and palliative
care are the services provided by the company. There are around 63 number of aged care centers
of the company in Australia, all the centers provides the healthcare services to people. The
company has 25 years of experience in aged care as it provides the excellent hotel-style services
to consumers. It provides the services in different countries and these are Western Australia,
Tasmania, New South Wales, Victoria, South Australia, Northern Territory and Queensland. The
types of services supplies by Aged Care are Ageing-in-place, Palliative Care, Transitional Care,
Respite care, Dementia Care and many others. The scope of the company the business is to
spread the business at the international level by providing these services. Apart from it, the
company offers a number of aged care services such as shorts says, respite care and also the
different stage of personal service and comfort with Reserve, Club Service and Classic facilities

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to make the people comfortable with them. The financial situation of the firm is good as it has
the profit with the amount of 50730 million at the end of the year. (Regis Aged Care, 2019).
Macro-environmental Analysis
PEST Analysis
Political : It has been seen that the government of Australia supports the industry by financing
the activities such as Australian Institute of Health and Welfare supports a comprehensive
coverage of residential aged care support and services. Commonwealth Government delivers a
Seniors Portal site for customers, community and professionals to search on-line services for care
provided by the government (Australian Government, 2020a).
Economical:
Australia is a highly developed market economy in terms of GDP $1.89 trillion in the year 2019.
It is one of the largest median wealth per adult as the government supports this industry in
funding the operations. The government of Australia funding the residential aged care through
different ways such as subsidies and supplements, capital gains for residential aged care,
program funding and many others. Australian government also provides the money those get the
services from government (Australian Government, 2020b).
Social:
Social defines the people behavior to take the services. It has been found that the people from the
above age 65 year old used the residential aged care services. In the year 2015 to 2016, the 5.6%
of population of Australia get the residential aged care services. The people from the above age
of 80-89 years also get the aged care services in which 45% of male and 60% of females. There

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is lot of people of Australia gets the aged care services which directly enhance the growth of
industry (BMC Geriatrics, 2016).
Technology: Technology is the major factor for the aged care industry as it assist to enhance the
delivering services process for the old people. It is observed that digital health and assistive
technologies has the ability to improve the aged care system by increasing the efficiency and
coordination of care by supporting healthy ageing (Australian Medical Association, 2020).
Key factors of opportunities and threats
From the above analysis, it has been analyzed that the external environment of Australia creates
the opportunity and threat for the company while operating the business in the industry and these
are:
Opportunities
Government Funding: As per the above analysis, it has been found that the government of
Australia supports the industry by funding it. The firm has many options to grow in the industry
as the government financing the operations.
Expansion: It has been found that large percentage of Australian people in the old age gets the
residential aged care services from the company. It has been found that the company has the
opportunity to spread the business at the higher level as the large number of gets the services
(Lasserre, 2017).
Threat
Threat of competitors: It is observed that that the firm has the threat of competitors as the
government supports the industry. There are many companies in the aged care industry that

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encouraged by the government to operate the business in the industry by financing the operations
that’s why; the degree of threat of competitors has been increases.
Regulations: It has been seen that Australian government supports the industry but still it
announced the various regulation and acts those restrict the companies to operate the business
successful. The company also has a high threat to spread the firm’s operation at the global level
as it has to implement the regulations for operating the business successful.
Porters Five Forces Model
The threat of new entrants:
It is observed that the degree of threat of new entrants is low as there are many regulations have
been announced by the government of Australia to reduce the frauds and mistakes. It is required
for the new entrants to enter the market by implementing the regulation. Before entering the
market, the new entrants have to take permission from the government regarding to enter the
market. In the aged care industry, brand image is the essential factor that attracts the consumers
towards the services. Brand image build the strong trust of consumers among the company due to
which the new entrants can face the challenge in building the reputation. The existing companies
of the industry have high brand image in the market due to which the consumers more prefers
their services that is why; it is difficult for the new entrants to build the strong relation
(Rothaermel, 2016).
Bargaining power of buyers
Negotiation power of buyers is high as the aged cares offering services in fewer prices in order to
influence the buyers to buy it services. It has been found that the government also provides the

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free aged services to people of the nation to cure their health’s. It is observed that the people
prefers the high quality of services but if the government provides those services without any
cost then the customers have the options to enjoy the services either from private organization or
from government organization. The large opportunity for the company enhances the negotiation
power of consumers.
Bargaining power of suppliers
Bargaining power of suppliers is low as there are large number of suppliers in the market that
provides the services to consumers. The companies are many alternatives from which they get
facilities as there are many companies funding the residential aged care industry through
charities and donations. Apart from it, government also support this industry due to which the
companies of this industry to switch from one supplier to another in less cost. The switching cost
of suppliers is less which states that the companies has the opportunities to get the services and
facilities easily that’s why; the bartering power of suppliers is high (IBIS World, 2019).
The threat of competitors
The threat level of competitors is high as there are many existing companies in the Australian
aged care industry. Benetas, Accurate Home Care LLC, Presbyterian Church, Blue Care, the
Whiddon Group and many others are the top competitors of the company as these provides the
same services to the people. These companies care the people by using the different facilities.
These companies are also the main competitors in terms of revenue as they are closes in terms of
revenue such as Benetas has $300 million, the Whiddon Group has $351 million, Anglican care
has $134 million. Benetas earns the high revenue as the people prefers their services that is why;

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Benetas is the main competitor of the company which states the high threat of competitors
(Zoominfo, 2019)
The threat of substitute
The threat level of substitute is less as it is difficult for the people to cure themselves at their
home. The alternative ways the people have is to implement home remedies for their cure but it
is a biggest challenge for them to cure themselves from the different home remedies. As the
people face difficulties to cure themselves due to which it is required for the company to cure the
people and the degree of threat of substitute is high
Conclusion
At the end, it is concluded that Regis Aged Care operates the business in hospitality industry
successfully. In this paper, macro-environmental analysis has been done by using PEST Analysis
and Porters five forces framework. According to analysis, it has been determined that the firm
has the opportunity and threat to operate the business in residential aged care industry of
Australia.

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References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R. (2018) Implanting
strategic management. Springer.
Australian Government. (2020). Aged care. Available From: https://www.health.gov.au/health-
topics/aged-care [Accessed 31/3/2020].
Australian Government. (2020). Funding for aged care service providers. Available From:
https://www.health.gov.au/health-topics/aged-care/providing-aged-care-services/funding-for-
aged-care-service-providers [Accessed 31/3/2020].
Australian Medical Association. (2020). Technological Innovations Needed For Aged Care.
Available From: https://ama.com.au/ausmed/technological-innovations-needed-aged-care
[Accessed 31/3/2020].
BMC Geriatrics. (2016). Trends in the utilisation of aged care services in Australia, 2008–2016.
Available From: https://bmcgeriatr.biomedcentral.com/articles/10.1186/s12877-019-1209-9
[Accessed 31/3/2020].
IBIS World. (2019) Aged Care Residential Services industry trends (2014-2019). Available
From: https://www.ibisworld.com.au/industry-trends/market-research-reports/health-care-social-
assistance/aged-care-residential-services.html [Accessed 31/3/2020].
Lasserre, P. (2017) Global strategic management. Macmillan International Higher Education.
Regis Aged Care. (2019) Aged care facilities. Available From: https://www.regis.com.au/aged-
care-facilities/ [Accessed 31/3/2020].

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Rothaermel, F.T. (2016) Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Zoominfo. (2019) Competitors. https://www.zoominfo.com/c/regis-aged-care-pty-ltd/100991988