International Expansion Strategies for Ryman Healthcare: A Report

This inductive report provides a comprehensive analysis of Ryman Healthcare's international strategic management, focusing on expansion strategies. The report begins with an executive summary, followed by an introduction to Ryman Healthcare, a leading New Zealand-based retirement village operator. It delves into the company's business model, key considerations before expansion, and the influence of business climate factors. The report develops a global marketing strategy, examines regionalization, social entrepreneurship, and product/service diversification. Strategic management planning for international expansion, the application of the blue ocean strategy, and strategic organizational analysis are also discussed. The report concludes with recommendations and a conclusion, providing Ryman Healthcare with a 360-degree approach to international expansion planning and risk assessment, offering insights into market entry, strategic planning, and the application of various business models to facilitate successful internationalization.

Running Head: INTERNATIONAL STRATEGIC MANGEMENT
Topic- Inductive report on International Strategic Management on Ryman Healthcare
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EXECUTIVE SUMMARY
This strategic management paper focuses on expansion strategies of internationalization.
For the discussion the Ryman Healthcare service provider organization is chosen. Ryman is one
of the leading health care providers in New Zealand. The company has high profitability margin
and is market ruler in the home country. At present the company is strategizing for international
expansion and for this an in-depth study of the various strategic management models, theories
and practical implication of theirs is necessary. A comprehensive framework of all relevant
theories and business models are explained in the paper so that Ryman healthcare gets a holistic
view of its present business stand and how it could implement the best expansion strategies in
future. An elaborate description of the prevailing business model of the company along with its
core competitors and business key considerations are studied and based on that its international
strategies are developed. The report also includes blue ocean strategy, input-throughput-output
framework, PEST analysis and other strategic expansion plans like business climate, marketing
strategy, regionalization, social entrepreneurship and product and service differentiation are also
discussed to have a 360-degree approach of the expansion plans and risks associated to it. Ryman
healthcare will be able to devise its expansion decision based on the factors included in this
report.

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TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................4
DISCUSSION.............................................................................................................................................6
BUSINESS MODEL...............................................................................................................................7
KEY CONSIDERATIONS BEFORE EXPANSION..............................................................................8
BUSINESS CLIMATE........................................................................................................................8
DEVELOPMENT OF A GLOBAL MARKETING STRATEGY.......................................................9
REGIONALIZATION.......................................................................................................................10
SOCIAL ENTREPRENEURSHIP....................................................................................................10
PRODUCT AND SERVICE DIVERSIFICATION...........................................................................11
STRATEGIC MANAGEMENT PLANNING FOR INTERNATIONAL EXPANSION......................12
BLUE OCEAN STRATEGY AND ITS RELATION TO INTERNATIONAL EXPANSION.............14
STRATEGIC ORGANIZATIONAL ANALYSIS................................................................................16
RECOMMENDATION.............................................................................................................................18
CONCLUSION.........................................................................................................................................19
REFERENCES..........................................................................................................................................20

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INTRODUCTION
The inductive report paper aims at providing Ryman Healthcare, a New Zealand based
company, best international expansion strategies so that it could effectively undertake
international expansion in future times. Ryman Healthcare is a retirement village operator and
holistic care provide to aged community in New Zealand. The name of the company is the
cumulation of the two names of its founders Kevin Hickman and John Ryder. The surnames
Hickman and Ryder combine together to give rise to Ryder Healthcare (Ryman Healthcare,
2019). The underlying ethos of the company is that everything that is done must be good for the
mum or dad. Generally, life after retirement or during old age becomes miserable due to a lot of
reasons, be it social, economic or family-related issue. The company aims at providing quality
life to the old-aged mothers and fathers who have the right to live the rest of their lives on their
own will and with full happiness and mental peace. Ryman Healthcare is one of the largest
stocks listed company in New Zealand and has it Ryman villages in Victoria and Australia as
well (Ryman Healthcare, 2019). From its very day of start till now it has progressed enormously
and every member of it is a proof. Currently the business is trying to spread its international
expansion wings up in the sky and for this need strategic guidance so that expansion plans
become easier and convenient to take.
The limitation of the report is restricted to internationalization process as culture, lifestyle
and social factors vary largely country wise. Sufficient resource for internationalization may not
be there and need to consider a number of other alternatives for the success of the
internationalization strategic planning (Achtenhagen, Melin & Naldi, 2013). Though it is true
that success of old-age homes and care providers is a reason of our societal failure but still if
quality of living is considered then obviously it has positive results at large. A pragmatic

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approach of the various strategies and international business aspects are considered and
explained in detail in the discussion section so that Ryman healthcare remain successful in its
international expansion strategic decision making.

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DISCUSSION
In order to understand the strategic decision making and expansion plans for
internationalization it is important to know the meaning of international expansion strategy. The
international expansion strategy comprises of market entry strategies generally new market and
includes a number of crucial decision-making in areas of primary focus market, target customer
determination, channel strategizing, resource allocation, value offering of products and services,
brand name positioning and finally development of the ultimate operating model (Banalieva &
Dhanaraj, 2013). International strategies may be multidomestic, global and transnational.
Business firms generally opt for international strategies for increasing market size of existing
business, increase economies of scale and better learning and to gain locational advantage.
Licensing is one of the crucial methods that need to be cleared for entering international business
world. Every detailed aspect of international strategy in regard to the expansion plan of Ryman
Healthcare is discussed in a systematic manner.
Ryman healthcare has increased revenue earning manifold in the coming years and is
now liking to internationalize its business in all over Australia. The company is planning to
develop a medium density Ryman village in the country and for this first site has been acquired
but widespread abuse has hindered the smooth prospect of entry in to the Australian soil.
Leaving controversies aside, it is obvious that overall dividends have boosted and steady growth
continues. The company is looking forward to use its digital transformation opportunity into
reality and is thus striving to provide better e-care to the Ryman village residents (Ryman
Healthcare, 2019). The villages comprise of independent town houses, Service Apartments, Care
Centre with Rest home and other Hospital level care units. Generally, people above 65 years of
age find Ryman village a better option for living retirement life to the fullest. Highlighting on the

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business aspects, first and foremost, a preview of the business model of the company is
necessary.
BUSINESS MODEL
An independent business model of the company will help find its stand and future
opportunities. Strategies for internationalization will be formulated based on the model analysis.
Integrative care providence is the main objective of the company. And therefore, the business
model is based on care. It is a mixture of healthcare service and property development (Ryman
Healthcare, 2019). The model starts with finding the right site for developing the village and
care community, cash is recycled and is re-invested in the next village project. A number of
teams work collaboratively to support its intensive care function based on the deferred
management fee model. The design team design the village layout as per residents’ need,
construction team builds it accordingly, sales team perform sales operations and finally the
operations team help it run smoothly. Self-monitoring tools help the company to evolve better
and maintain better quality control and increase the scope to be nimbler in supporting business
growth. They have one main version and that is being ethical, honest, transparent and fair
(Ryman Healthcare, 2019). User-friendly agreement terms and conditions differentiate it from its
competitors. Value for money is what they emphasis upon and the cost structurer is affordable
for everybody in general. Staffs and acre providers are passionate about their work and its all
about people there. Constant improvement and continuum of care is what Ryman focuses upon
and have strong community support in their operational activities. Emphasis on quality health
and intensive care is what Ryman healthcare is all about. The business model is very much
lucrative for investor engagement and the model is one of the main bases of its strength and

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pillar of success. Along with this exceptional customer service is what that act as the success
benchmark for the company.
KEY CONSIDERATIONS BEFORE EXPANSION
Ryman healthcare is one of the most popular old-age acre home in New Zealand and is
gaining competitive advantage from its close competitors (Oceania, BUPA, Arvida, MetLife care
and Summerset Holdings) for years (Ryman Healthcare, 2019). Now the company is looking for
international expansion outside the country and need to consider a number of factors before its
internationalization. Kelly’s five factor considerations include, lack of in-depth market research,
no sales and marketing channels, no product offering, insufficient local management teams and
lack of local logistics planning. Prevailing market competitors in the new country need to be
considered as well. In order to create a long-lasting global market competitive lead a well
formatted business strategy need to be developed. The five major expansion factors include
business climate, development of a global marketing strategy, regionalization, social
entrepreneurship and product and service diversification (Baum, Schwens & Kabst, 2013).
BUSINESS CLIMATE
Business climate comprises of various factors of business growth like economic,
political, socio-cultural and technological factors. The transaction cost theory analysis is helpful
in examining country wise business climate. Expansion strategies mostly rely on cost
effectiveness and profitability insurance. This analysis prevents bottom-line crisis in new country
functioning and help in monitoring unanticipated expenses at large. Global expansion increases
economic development, job creation and business growth. A number of administrating costs,
processing costs, taxation costs and licensing costs are to be included before final expansion start
(Brush, 2013). Business environment varies considerably from country to country and therefore

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the climate for business in the country need to be scrutinzed and researched extensively.
Specially, political regimes are the major catalyst for uncertainties and can cause the company
incur potential loss in the long run. Economic uncertainty includes flexible interest rates,
inflation, demand supply change, recession and other financial crisis.it is better not to diversify
in high economic unstable countries. Technological resource support is a boon for the prospect
of a company (Cannon, 2016). Major areas supported by technological advancements are
transportation, communication and banking and financial services. Data protection and privacy
laws vary from country to country and pose challenges to businesses in areas of confidentiality.
The thought of ‘acting local while thinking Global’ will best suit the internationalization
strategies of a company. Government policies need to be considered as they play huge role in
setting up new business in new countries. Main international expansion methods include direct
entry, acquisition, joint venture and strategic alliance. Ryman healthcare being a single operating
company should go for direct entry alternative. Initial low-cost involvement, enhanced customer
contact, complete control, and efficient usage of opportunities are the advantages of direct entry
(Casillas & Moreno-Menéndez, 2014). Limitations include high cost for trade barriers, tariff and
quotas and difficult economies of scale opportunities.
DEVELOPMENT OF A GLOBAL MARKETING STRATEGY
Economics integration is the aim of global expansion. A well knitted marketing strategy
need to be developed, implemented and executed. Marketing team collaborated with strong
project management team will see the whole process till the end. Team can be in-house or can be
outsourced. The two-stage generic competitive process framework supports the accurate business
model to be used for the expansion strategy (Cavusgil & Knight, 2015). Ryman can use its own
unique business model of deferred management fee. The model provides information on content,

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structure, value and assets and transaction governance. The simple business model of Ryman is
important in supporting its marketing strategies. Tactics are important in business expansion
because they provide the potentiality of how much value a business entity can capture and create.
Cost management in the parent company as well as competitor monitoring is supported by
Tactics (Charif et al. 2017). Main perspectives of global marketing strategies include
standardization, configuration-coordination and integration. Business standardization is based on
homogeneity of customers response, flexibility of competitive advantage and economic
homogeneity.
REGIONALIZATION
Geographic scope of internalization is another name of regionalization. It can be both
abstract and literal. Physical location plays a crucial role in expansion planning (Wang, Kung &
Byrd, 2013). If the location is not favorable the business will not succeed. Valid demand supply
concern, exchange rate volatility etc. need to be considered while finalizing a location. Some
sectors of businesses like renewable energy have more wider regional support as compared to
other ones. Ryman being an old-age care service provider will have added advantage as they
strive for communal betterment (Eberhard & Craig, 2013). But as this is a sensible sector many a
times their objective could be questioned. Strong networking makes the process of
regionalization more effective. Though regionalization has logistical challenges and need to be
handled with care.
SOCIAL ENTREPRENEURSHIP
Social entrepreneurship is the key component of business ventures across international
standards. Value business is what present entrepreneurs are focusing upon. The main resources
include organizational, social, financial, human and physical ones. Strong networking among all

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the factors help in business success. Both cost and benefit need to be focused so that every
objective of the firm gets achieved (Eriksson et al., 2015). Social soft silks are the differentiators
that differentiates a company from a number of available ones. Intensive social support and acre
is what that differentiates Ryman healthcare from its competitors and has helped it in attracting
the market for years. Cultural sensitivity is one factor that need to be incorporated in the
organizational culture and it will encompass how and why consumers feel about the organization
at large. Negative perception can be fatal in the long run success of the organization (Forsgren &
Johanson, 2014). Positive word of mouth will help in having better future sustainability and
ethical environmental standards are other crucial factor that play huge role in the sustainable
development of the organization.
PRODUCT AND SERVICE DIVERSIFICATION
Product diversification is one of the most difficult decision for strategic management
team. It is the process of business opportunity expansion by the help of additional market
potential of a product that is already existing in the market. Often the product may be changed,
altered, improved or new marketing strategies could be devised (Sui & Baum, 2014).
Diversification planning includes extensive market research, analysis of product adaptation and
legal review if any. Same conditions are applicable for service diversification. Expansion of
service into new territory could be called as service diversification. Product diversification is a
risky step both for successful businesses or new market entrants. Diversification may be
successful or may not be. An in-depth analysis of market return and market forecast along with
competitive analysis need to be carried out and both business and stakeholders need equal
involvement in this decision-making process (Gabrielsson & Gabrielsson, 2013). Factors such as
geographical aspect, cultural value of new region and value of the product there need to be

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considered. Product diversification and international business expansion strategy are closely
linked to one another. It is found that the ratio of foreign sales to total sales and FDI moderates
positive relationship between the two. The effect is smaller if level of international orientation is
comparatively higher. That means the lower and initial product diversification of the company
helps the process of international expansion for new companies who are trying to extend their
reach in foreign market (Godbole & Lamb, 2018). Offering a line of new product may prove
fatal for new expansion, it is better to adhere to own existing products with some add-ons and
take slow steps towards internationalization. To sum up in one line it can be said that product
diversification has negative effect on international expansion of a business corporation.
So, it is evident that the strategies that good for home-market expansion may not be good
for international expansion (Sleuwaegen & Onkelinx, 2014). So, a pre-hand study of the
potential market and prevailing trends need to be focused and extensive research of every
possible factor (both positive and negative) need to be incorporated so that risks are mitigated at
large.
STRATEGIC MANAGEMENT PLANNING FOR INTERNATIONAL EXPANSION
Planning is the first step of success for any firm. Without proper plan a firm can go
nowhere and will became directionless in the long run. So, the primary focus of every firm is to
develop a solid plan for its strategy formulation so that risks and unwanted situations could be
mitigated to the extent possible. The open system theory approach is best for describing the most
appropriate planning method. In this system organizational behavior is mapped through repeated
cycles of input, throughput, output and feedback. This system supports long term and growth
sustainability for future expansion (Hallbäck & Gabrielsson, 2013). Homeostasis balance the
dynamic functionality of an open system business. Input helps in monitoring environmental