Strategic Analysis of Sonic Healthcare: Report and Recommendations

This report provides a strategic management analysis of Sonic Healthcare International, a global healthcare company. It begins with an introduction to the company and its services, followed by a PESTEL analysis to assess the macro-environmental factors influencing its operations. The report then examines Sonic Healthcare's competitive advantages, including technology, brand loyalty, updated software, employee satisfaction, effective management, and decision-making processes. Furthermore, it explores the company's generic strategies, focusing on cost-leadership and differentiation. Growth strategies are also considered, with recommendations for future development. The conclusion emphasizes the importance of strategic management for organizational growth, sustainable competitive advantages, and expansion in both domestic and international markets, supported by relevant academic references.

Sonic Healthcare
International strategic management

Table of Content
• Introduction
• PESTEL Analysis
• Company’s competitive advantage
• Company’s generic strategies
• Growth strategies
• Recommendations
• Conclusion

Introduction
• Sonic Healthcare is a global healthcare company which provides laboratory medicine,
pathology, radiology, diagnostic imaging and primary care medical services.
• Its operations is in Australia, USA, Germany, Switzerland , the United Kingdom,
Belgium, Ireland and New Zealand.
• Strategic management of organization includes the analysis of Macro environment,
Company’s competitive advantage, generic strategies and growth strategies.

PESTEL Analysis
• Political factor- This factor plays a significant role which impact on the long term
profitability in a market.
• Economic factor- The factors like inflation rate, saving rate, interest and foreign
exchange rate helps the business in determining the investment and demand in the
market.
• Social factor- It includes the way of doing things and culture like sharing beliefs and
attitudes.

PESTEL Analysis
• Technological factor- In healthcare industry, it is necessary to consider the technology
as it is fast disrupting for providing the services.
• Environmental factor- In the different market, different norms and standards are
required to be followed which impacts on the profitability of the organization like air
and water pollution regulations are required to be followed in the industry.
• Legal factor- Legal framework and institution are required to be included and anti-
trust law is considered in Sonic healthcare for providing the trust to customers.

Competitive advantages
• Technology- Technical development is required for managing the services.
• Brand loyalty- It is necessary to create the loyalty for making the position in the
market. Sonic healthcare has created the brand loyalty with the effective services.
• Updated software- In order to provide the services and delivering the reports on time,
the latest software are used by the organization.

Competitive advantages
• Satisfaction of employees- In order to satisfy the employees, the effective
environment is provided.
• Effective management- Team work is a competitive advantage as staff work in team in
taking care of customers.
• Decision making process- In order to make the sustainable competitive advantage,
decision making process is followed for taking the effective decisions for achieving the
goals and objectives.

Generic strategies

Generic strategies
• Porter’s generic strategies helps in gaining the competitive strategies.
• In the cost-leadership strategies, the aim is to increase the profits by reducing the
costs by considering the average prices.
• In the differentiation based strategy, the focus is to aim the market for
• High level of productivity
• Effective use of technology in the production process
• Use of bargaining power to negotiate the lowest prices for production inputs
• The special customer needs of the segment mean that there are opportunities to
provide products that are clearly different from competitors who may be targeting a
broader group of customers.

Growth strategies

Recommendations
• Safety, effectiveness and efficiency
• Effective services
• Adverse event reporting system
• Functional level strategic management
• Strategic decision making
• Technologies

Conclusion
• Strategic management is necessary for the growth and development of the
organization.
• It helps in increasing the sales and profits.
• Sustainable competitive advantages.
• Macro environment factors are essential as it helps in analysing the position of the
business in the market.
• In order to expand the business, strategic management is required for growing the
business in domestic as well as in international market.
• Diversification strategies are adopted for creating the sustainable competitive
advantages.