Strategic Analysis of Regis Healthcare's Aged Care Division - Report

This report provides a strategic analysis of Regis Healthcare's residential aged care division, examining its macro-environment and industry dynamics. It begins with an introduction to Regis Healthcare, followed by an analysis of the economic, technological, political, environmental, social, and legal factors impacting the aged care sector in Australia. The report then applies Porter's Five Forces model to assess the competitive landscape, including competition, substitute product threats, new entrants, and the bargaining power of suppliers and customers. The analysis highlights the high level of competition in the industry and the impact of government regulations. The report concludes that macro-environment and industry analysis are linked and highlights the factors that make the Australian aged care industry customer-driven. The report is supported by references to relevant sources.

Running head: STRATEGIC ANALYSIS
Regis Healthcare
Strategic Analysis
4/6/2020

STRATEGIC ANALYSIS 1
Table of Contents
Introduction......................................................................................................................................2
Macro environment......................................................................................................................2
Economic Factor.......................................................................................................................2
Technological Factor................................................................................................................3
Political Factor.........................................................................................................................3
Environmental Factor...............................................................................................................3
Social Factor.............................................................................................................................4
Legal Factor..............................................................................................................................4
Porter Five Force Model..............................................................................................................5
Competition in the industry......................................................................................................5
The substitute product threat....................................................................................................5
The threat of new entrant..........................................................................................................5
Bargaining power of suppliers.................................................................................................6
Bargaining power of customers................................................................................................6
References........................................................................................................................................7

STRATEGIC ANALYSIS 2
Introduction
This paper aims to present a discussion related to Regis Healthcare and one of its major divisions
that are Residential age care. The discussion is being presented related to the macro environment
of the residential aged care segment and industry analysis.
In the early 1990s, Regis Healthcare was introduced and has successfully established as the
Australia’s private residential aged care. The business is involved in managing its 7000
operations places from which there are 63 residential homes that are available within the
metropolitan area of the country (Regis Aged Care, 2020a). Regis was always interested in
offering better services in the market such that the country can develop. In order to provide a
better life to the old age people, the company got involved in the residential age care division in
1994. The company is working hard and has gained experience in the residential aged care
division by providing services as the home care and specialist care for dementia care, palliative
care as well as respite care. With the establishment of the 63 aged care centers, the company has
gained the experience of around 25 years (Regis Aged Care, 2020b). The regions where the
company offers its services are New South Wales, Western Australia, Victoria, Tasmania, South
Australia, Queensland, and Northern Territory (Regis Aged Care, 2020c).
Macro environment
Economic Factor
The Australia aged care division is contributing a huge part in the economy of the country. This
sector of the country provides a range of healthcare services that have successfully allowed all
the citizens to get better healthcare services whenever needed. This industry is majorly involved
in providing comfort to the aged people by offering aged care services to diverse communities
which eventually adds value to the Australian economy. Besides this, there are a number of

STRATEGIC ANALYSIS 3
Australians and government organizations that spend money on the development of the health
sector and the analysis reveals that the health expenditure in 2016-17 is $181 billion (Australian
Institute of Health and Welfare, 2018).
Technological Factor
The Australian aged care industry is gaining huge benefits with digital technology development
due to which there are a number of chances. The healthcare sector has developed had designed a
number of websites and applications that help the user to compare the services being received of
aged care (Australian Medical Association, 2019). Besides this, social media development has
allowed the customer or client to have a look at the reviews of the users of the services before
getting registered for the services at any organization.
Political Factor
Regis Healthcare is a private organization that is offering a range of services in the Australian
market including residential aged care services by following the guidelines of the administration.
The government is performing a major part in the development of this industry because it is
offering different subsidies for the businesses in this industry and reforms for the sector
development. The government has always tried to safeguard the rights of the users therefore; it
has introduced a reform that is “Increasing Choice in Home Care” in 2017. The reform is
planned to allow the old age people control over the home care services and the right to get
additional choices such as choosing the home care provider (Services Australia, 2017). The
people who receive government funding for paying the cost of the aged care services are not
eligible to get the choice in terms of selecting the favored aged care provider. As per this reform,
the user can anytime change the service provider.

STRATEGIC ANALYSIS 4
Environmental Factor
The Australian aged care industry is depending on promoting as well as supporting the health
care activities by providing aging services for older people who are dealing with some of the
major mental or health diseases such as dementia. The Regis Healthcare Company meets its
responsibilities for environmental sustainability. To do this, the company is focused on
maintaining a positive culture under which it provides training as well as incentives to the
workforce and the volunteers that derive sustainable behavior. Besides this, the company is
contributing to the justifiable use of natural resources by doing recycling and reusing the things
that can be done. In addition to this, the entire group ensures the efficient use of energy for
reducing its carbon footprints from the environment (Regis Aged Care, 2020d).
Social Factor
Apart from the positive environmental and economic contribution, the aged care industry of
Australia also focuses on the development of society. The company focuses on providing better
jobs, salaries, and incentives to the citizens for generating a return to capital. The analysis of
Japara Healthcare reveals that the value of the aged care industry of Australia is $20 billion+,
and provide employment to 224,000 employees (Japara Healthcare, 2020). These employees are
offering care services to over 270,000 people in the nation (Japara Healthcare, 2020). On the
other side, Regis healthcare is itself offering employment to 7500 employees and focusing on
their career development (IBIS World, 2020).
Legal Factor
Aged care act 1997 regulates the Australian aged care services. This act covers the guidelines
and reforms related to the fund offered by the government to the old age people. This act focuses
its attention on planning the rules, funds to those who need it, and regulations for quality care

STRATEGIC ANALYSIS 5
(Department of Health, 2020). This act also takes into account the laws related to diversity and
discrimination in the industry of aged care.
Opportunities and Threat
The possible opportunity for Regis healthcare in the aged care division is that it can get access to
the advance technology that can be offered to the old age people for regularly monitoring their
health updates. Some of the technology that can be offered or used is the fitness band or
wearables that help in tracking the physical activities. Besides this, the company can also install
robotic technology for regular updates and tracking of the nurses.
The possible threat for Regis healthcare in the industry is competition from the government-
owned organizations offering similar products and services to the target audience that is old age
generation in the country at a reasonable price or free of cost.
Porter Five Force Model
Competition in the industry
The power of competition in residential aged care industry is high. This is because the industry is
dominated by non-profit businesses that are offering similar services. In addition to this, some
private groups are offering services in the Australian market that intensifies the competition.
Some of the competitors are Benetas, the Whiddon Group, Accurate Home Care LLC, ECH Inc.,
Blue Care, etc. (Zoom Info., 2020)
The substitute product threat
The threat of the substitute product in the aged care industry of Australia is low because the
demand of the client changes with the increasing age.
The threat of new entrant
Since there is, a number of entry barriers in the industry of aged care of Australia the new player
threat is low for Regis Healthcare and its residential care services. As this industry is customer

STRATEGIC ANALYSIS 6
drive, it makes it different from other industries. To make entry into this industry, the providers
need to have a strong financial position and contact the supplier such that they can provide better
and affordable services. Besides this, the industry is competitive and some of the key players
have already gained a respectful position in the market which makes it tough for the new player
to gain the share.
Bargaining power of suppliers
This industry offers three types of services to the old age people that are community care, home
care, and residential care that is met by 2000 suppliers, which reveals that the supplier has low
bargaining power.
Bargaining power of customers
Customer power is high because the Australia aged care industry is customer-driven and the
service packages that are offered are designed as per the demand and capability to pay off the
client (Aged Care Quality and Safety Commission, 2020).
From the above analysis, it can be said that macro-environment and industry analysis are linked
since both highlights that the Australian industry of aged care is the major contributor in the
customer development by offering services as per their demand.
This report has highlighted the different aspects of the aged care industry in Australia and reveals
that there are a number of players offering similar services which makes it highly competitive.
Besides this, the entire industry focuses on the development of the customer i.e. old age people
and therefore provides better and high-quality services. In addition to this, the market is
comprised of a number of suppliers offering similar services to the business which decreases
their bargaining power. Furthermore, it is very tough for a new player to take entry and start a
business in this competitive market because of the availability of a number of barriers.

STRATEGIC ANALYSIS 7

STRATEGIC ANALYSIS 8
References
Aged Care Quality and Safety Commission (2020) Consumer engagement in aged care [online].
Available from
https://www.agedcarequality.gov.au/sites/default/files/media/acqsc_consumer_engagement_in_a
ged_care_-_literature_review.pdf [accessed 5 April 2020]
Australian Institute of Health and Welfare (2018) Health expenditure Australia 2016–17
[online]. Available from https://www.aihw.gov.au/reports/health-welfare-expenditure/health-
expenditure-australia-2016-17/contents/summary [accessed 5 April 2020]
Australian Medical Association (2019) Technological Innovations needed for Aged Care
[online]. Available from https://ama.com.au/ausmed/technological-innovations-needed-aged-care
[accessed 5 April 2020]
Department of Health (2020) Aged care laws in Australia [online]. Available from
https://www.health.gov.au/health-topics/aged-care/about-aged-care/aged-care-laws-in-australia
[accessed 5 April 2020]
IBIS World (2020) Regis Healthcare Limited - Australian Company Profile [online]. Available
from https://www.ibisworld.com.au/australian-company-research-reports/health-care-social-
assistance/regis-healthcare-limited-company.html [accessed 5 April 2020]
Japara Healthcare (2020) Future Trends in Australian Aged Care [online]. Available from
https://japara.com.au/news/future-trends-in-australian-aged-care/ [accessed 5 April 2020]
Regis Aged Care (2020a) Aged Care Facilities [online]. Available from
https://www.regis.com.au/aged-care-facilities [accessed 5 April 2020]

STRATEGIC ANALYSIS 9
Regis Aged Care (2020b) About Regis Aged Care [online]. Available from
https://www.regis.com.au/aged-care-facilities/about-regis/ [accessed 5 April 2020]
Regis Aged Care (2020c) Location [online]. Available from https://www.regis.com.au/aged-
care-facilities [accessed 5 April 2020]
Regis Aged Care (2020d) Sustainability [online]. Available from
https://www.regis.com.au/sustainability/ [accessed 5 April 2020]
Services Australia (2017) Increasing choice in home care [online]. Available from
https://www.servicesaustralia.gov.au/organisations/health-professionals/services/increasing-
choice-home-care [accessed 5 April 2020]
Zoom Info. (2020) Regis Aged Care Pty Ltd [online]. Available from
https://www.zoominfo.com/c/regis-aged-care-pty-ltd/100991988 [accessed 5 April 2020]