Analysis of Sonic Healthcare: Demand, Supply, and Market Dynamics

This report examines Sonic Healthcare, an Australian healthcare organization providing laboratory, pathology, and radiology services. The analysis focuses on the company's market position, industry background, and the factors influencing demand and supply within the healthcare sector. It investigates the company's operations, market structure, and the impact of various factors on the demand for its services. Furthermore, the report explores Sonic Healthcare's growth strategies, including international expansion, and assesses the potential for future development, considering government health financing and the competitive landscape. The report also delves into the elasticity of demand for the company's services and the potential impacts of specific events on the healthcare industry, aiming to provide insights into the company's economic performance and strategic direction.

Economics

EXECUTIVE SUMMARY
INTRODUCTION
Healthcare organisations has the special role towards the nation and society. They always
under the obligation to provide best products/services according to the market needs. It is the
duty upon management to analyse the demand and supply aspects so properly able to meet out
the societal requirements. This has huge importance towards the improvement in production
activities along with bringing change in technologies for improving existing services. This also
provides the opportunity regarding introduction of new and advanced medical equipment’s that
are more competent in nature of providing better care services. In overall performance of such
activities, best for the management to apply the concepts of economics. The main aim of this
report is also about ascertaining the demand and supply of organisational service along with the
factors that have influence over same. The organisation considered to analyse the concept is
Sonic Healthcare. It is an Australian organisation that provides the diversified services like
laboratory, pathology and radiology services. The operations of an organisation prevail under the
health-medical diagnostic industry.
The aspects cover in report includes introduction of an organisation, industry/sector
background, market structure of the industry/sector, factors that influence demand for the
company’s product, factors that influence supply of the company’s product, demand elasticity of
the organisational product and impacts of an event on the industry.
MAIN BODY
Introduction to the company
Sonic Healthcare Limited is an Australian organization that gives laboratory facility
administrations, pathology, and radiology services. The Sydney-based organization has its
underlying foundations in the pathology practice of Douglass Laboratories, and since has gotten
one of Australia's biggest indicative organizations. It has existing business activities in Australia,
New Zealand, United States, United Kingdom, Germany, Switzerland, Belgium and Ireland. It is
the biggest clinical research centre supplier in Australasia and Europe and the third biggest in the
US, it utilizes more than 37,000 individuals. It was listed on the Australian Stock Exchange in
1987 as Sonic Technology Australia Ltd. The organization changed its name to Sonic Healthcare
Ltd in 1995. It is currently part of the S&P/ASX 50, and is one of the biggest clinical

organizations recorded on the ASX, CSL Limited, Cochlear and ResMed being the main other
recorded clinical organizations of equivalent size.
The organization procedure related to attaining development is by obtaining the ownership
of the abroad organizations. With numerous investigates contending that such a procedure can
prompt over enhancement, yet has apparently functioned admirably to extend its business. There
is restricted chance to grow further in the Australian commercial centre and income in Australia
is to depend over the great extent subject to government health financing through Medicare. The
firm has expanded its income base with moves offshore from Australia. Yearly Revenues for
Financial Year to June 30, 2019 surpassed A$6.2 billion. Dr Colin Goldschmidt is the CEO and
Managing Director.
There is huge scope for this organisation to gain development within the market. The
existing operations of an organisation are good where they effectively able to provide the
services to all the numerous individuals of society. The management of an organisation has the
aim about bringing more competencies in their current services especially in laboratory,
pathology and radiology. In future, organisation has the desire to improve the market base and
revenue by more than 35 percent. In this regard, better for an organisation to analyse the market
and ascertain the influence of factors that have impact over demand and supply of services. This
help in development of favourable strategies through which an organisation able to accomplish
their desired targets.