Strategic Analysis Report: Regis Healthcare Ltd, MAN301, Semester 2

This report provides a strategic analysis of Regis Healthcare Ltd, an aged care provider in Australia. The analysis includes an examination of the external environment using PEST analysis, assessing political, economic, social, and technological factors impacting the industry. It also undertakes a competitive analysis using Porter's Five Forces model to evaluate industry dynamics. The internal environment is assessed through the VRIO framework to identify the company's resources, capabilities, and core competencies, such as its brand portfolio and quality of service. The report concludes by summarizing the key findings and suggesting strategies for future business expansion and addressing uncertainties.

12/21/2019
RUNNING HEAD: REGIS HEALTHCARE LTD 0
Strategic Management
Student’s Details-

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Executive Summary
 Strategic management is an important aspect of the business that takes care of the
various factors that can make the company competitive.
 Key idea of report lies on the strategic analysis through the internal and external
factors identification of renowned company Australia.
 Internally, the company has strengths that are being identified from the resources and
capabilities of the business.
 External analysis of the company is made through the PEST which is regarded as the
most effective tool for the identification of the impact of external environment.
 Key resources and the capabilities are being determined from the VRIO framework
which is the best tool for the determination of core competency of the business.

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Contents
Introduction................................................................................................................................3
External Analysis.......................................................................................................................3
Competition Analysis of Industry..............................................................................................4
Internal Environment of the Industry.........................................................................................4
Core Competency of Company..................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
Strategic management is concerned with the making of action plans for the business
activities that can make the business profitable in the long run (Adler, 2018). The report has
highlighted the strategic analysis of Regis Healthcare Limited which is into the Aged Care
industry into Australia. The company is largest aged care provider company having 8000
employees that are focused on giving the quality care through offering ageing-in-place,
dementia care and club services (Regis Healthcare, 2019). The report will discuss the external
environment, industry and competitor analysis of the company in order to get strategic
direction to the company. Further, report will discuss the internal environment through the
analysis of resources and capabilities and the core competency of the business through the
appropriate models and frameworks.
External Analysis
External environment analysis makes the analysis of external factors that can affect
the operation of the industry (Adler, 2018). For the healthcare industry, there are certain
external factors that can have impact on the profitability of Regis Healthcare. The framework
of PEST analysis can be used for the external environment. The model includes political,
economic, social and technological factors that can be helpful in the determination of risk
factors and the opportunity in the market. Firstly, there are political factors which include the
variations in the policies regarding healthcare industry, government legislations and the
changes in the tax policy that has emphasized the aged sector of Australia. For example, the
Productivity Commission’s inquiry has implemented the policy of ‘Living Longer Living
Better’ that can affect the organizational operations (AGDH, 2017).
Further, economic condition of Australian can affect Regis Healthcare as Australia
has stable economic growth and aged sector contributes to the economy of Australia (DAE,
2016). Additionally, Australia’s employment rates and the growing population provides a
large opportunity for healthcare industry to get success in the long run. Social factors such as
income, education and the diverse needs of the consumers can affect the aged care sector in
Australia. Technological factors such as changes in the technology and the innovative
practices has placed a huge impact on Regis Healthcare as the company uses the technology
to increase consumer awareness and also training the workforce and bringing new
opportunities.

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Competition Analysis of Industry
Competition analysis is the analysis of the competitive forces that have major effect
on the concerned industry in order to determine the strength and weaknesses of the business
that can be helpful in exploiting the opportunities and avoiding the risk that can be helpful for
getting the competitive advantage (Babatunde & Adebisi, 2012). This can be understood from
the application of Porter’s Five Force Model to determine the competitive forces within the
healthcare industry. The bargaining power of customers in Australian aged sector is low as
the buyers of service of the company are less. Secondly, threat of new entrants can affect the
healthcare industry in which the company faces stiff competition from the new industries in
which aged sector of Australia has a competitive marketplace. For example, new care
providers are Australia has been taking the market share of the healthcare industry and the
company has been threatened by these competitors in marketplace (Doyle & Morris, 2017).
Further, healthcare industry can consist of substitute services that the company might
provide in terms of other competitors that can affect the profitability and productivity of the
company. Also, there is rivalry amongst the existing competitors which hinders the success
and profitability of the company. Further, the company has been facing the stiff competition
from the rival industries that can affect the profitability of the company.
Internal Environment of the Industry
Internal environment of the industry is concerned to be the strength and weaknesses
of the company that can enable the company to get sustainable competitive advantage
(Babatunde & Adebisi, 2012). This aims to determine the resources and capabilities which
are the company’s strengths to be utilized against the rival companies. Moreover, resources
and capabilities can be identified from the VRIO framework which is the strategic tool to be
used for the identification of the resource which is valuable, rare, imitable and organized
(Guesalaga, Gabrielsson, Rogers, Ryals, & Cuevas, 2018). Further, the company has valuable
resources which are different from the competitors and also the company has a diverse
portfolio and the quality of service. Rare resources of the company are their efficient
employees and the strength of the company which is 8000 and makes the company’s internal
resources different from the competitors (Regis Healthcare, 2019). Further, the company’s
resources such as the quality of service are difficult to imitate by the competitors and all these
resources are well organized for the purpose of holding a competitive position in the market.

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Core Competency of Company
The company’s unique product or service offering that makes the company different
from others and often distinguishes from others is regarded as the core competency of the
company (Hsiao & Hsu, 2018). Similarly, Regis Healthcare Limited has unique brand
portfolio and also quality services that it gives to the customers are the core competency of
the business. The company ensure the quality of care given to aged people through the
efficient management team that provides the quality of service to the patients of dementia and
the people who need aged care. The company provides a distinguished service to the people
through empowerment which creates belongingness with the ageing people that is consisting
to be the unique quality of the company and is a core competency of Regis Healthcare in
terms of attaining competitive advantage.
Conclusion
Thus, it can be concluded that every company makes sure that the internal and
external environment of the company is effectively being ensured in order to make the
strategies for the further improvement. The report has determined the external factors and
internal analysis that can be helpful in the identification of the opportunities and risk factors
associated with the Regis Healthcare. Further, the report has discussed the competitive forces
through the application of the suitable models. The report is successful in the strategic
analysis of the Regis Healthcare for opportunity to expand the business and make strategies
for future uncertainty.

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References
Adler, R. (2018). Strategic Performance Management: Accounting for Organizational Control.
London: Rotledge.
AGDH. (2017, July 28). Response to the Senate Community Affairs Legislation Committee Report on
the: Aged Care (Living Longer Living Better) Bill 2013 [Provisions] and related bills. Retrieved
December 21, 2019, from Australian Government Department of Health :
https://agedcare.health.gov.au/overview/response-to-the-senate-community-affairs-
legislation-committee-report-on-the-aged-care-living-longer-living-better-bill-2013-
provisions-and-related-bills
Babatunde, B., & Adebisi, A. (2012). Strategic Environmental Scanning and Organization Performance
in a Competitive Business Environment. Economic Insights-Trends & Challenges, 64(1).
DAE. (2016, June 1). Australia’s aged care sector: economic contribution and future direction.
Retrieved December 21, 2019, from Deloitte:
https://www2.deloitte.com/au/en/pages/economics/articles/australias-aged-care-sector-
economic-contribution.html
Doyle, N., & Morris, S. (2017, October 11). Home care market competition: Who’s new? Retrieved
December 21, 2019, from KPMG: https://home.kpmg/au/en/home/insights/2017/10/home-
care-market-competition.html
Guesalaga, R., Gabrielsson, M., Rogers, B., Ryals, L., & Cuevas, J. (2018). Which resources and
capabilities underpin strategic key account management? Industrial Marketing
Management, 75, 160-172.
Hsiao, Y., & Hsu, Z. (2018). Firm-specific advantages-product innovation capability
complementarities and innovation success: A core competency approach. Technology in
Society, 55, 78-84.
Regis Healthcare. (2019, August 22). Regis Healthcare Limited. Retrieved December 21, 2019, from
Regis Healthcare Ltd: https://www.regis.com.au/aged-care-facilities