Business Level Strategy Analysis of Regis Healthcare (2020)

This report presents a detailed strategic analysis of Regis Healthcare's residential aged care division, focusing on its business-level strategy. It begins with background information on the corporation and its aged care services, then proceeds with a macro-environment analysis using the PESTLE framework to assess political, economic, social, technological, legal, and environmental factors impacting the industry. The report also incorporates the Porter Five Forces model to analyze the competitive landscape, including the threat of new entrants, substitute products, competitive rivalry, and the bargaining power of customers and suppliers. The analysis considers the impact of the COVID-19 pandemic on the aged care sector and concludes by highlighting opportunities and threats for Regis Healthcare. The report provides a comprehensive overview of the Australian aged care industry, emphasizing its customer-driven nature and the challenges of competition and regulatory compliance.

Running head: BUSINESS LEVEL STRATEGY
2020
Business Level Strategy

BUSINESS LEVEL STRATEGY 1
Table of Contents
Introduction................................................................................................................................2
Background study of Regis Healthcare Corporation and its residential aged care division. .2
Macro Environment Analysis.................................................................................................3
PESTLE Analysis...............................................................................................................3
Porter Five Force Model.....................................................................................................6
References..................................................................................................................................8

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Introduction
The intent of this report is to present a detailed strategic analysis of the Regis
Healthcare Organization and its Residential Age Care division. The strategic analysis of the
company is comprised of a detailed analysis of the macro-environment focusing on every
aspect of the Australian aged care industry. In addition to this, the report is also undertaking
the detailed industry analysis with the use of the Porter Five Force Model to identify the
impact of all the five forces.
Background study of Regis Healthcare Corporation and its residential aged care
division
Regis Healthcare was formally introduced in the early 1990s and has developed from
the original 104 places to the biggest and geographically expanded private residential aged
care in the Australian market. In the present duration, the organization successfully manages
around 7,000 operational places out of which 63 homes are placed in the metropolitan region
in the country (Regis Healthcare, 2020). Regis has successfully created a platform that offers
care to a number of people and has shown consistent growth.
In the year 1994, Regis entered the industry of residential aged care. All these years,
the company has gathered experience in residential aged care, specialist care, and home care
services like respite care, palliative care, and dementia care. By offering quality care along
with flexibility, the company now called the leading residential aged care private facilities of
Australia. The organization has 63 aged care facilities in the entire Australia that are involved
in offering better healthcare support to people with different needs. At the residential aged
care services, the company provides a number of service options for short stays, personal
care, and respite care, along with the Club Service (Regis Aged Care, 2020c). The company
reveals that with its 25 years’ experience in the residential aged service they are proud to
offer special hotel-style services along with the superior aged care support in Western

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Australia, South Australia, Victoria, Northern Territory, Queensland, Tasmania, and New
South Wales (Regis, 2020).
Macro Environment Analysis
PESTLE Analysis
Political – Being a private organization in providing residential aged care services in
the Australian market, Regis is controlled by the government of Australia. The government is
involved in introducing different reforms and subsidies for the development of this sector. In
the year 2017, the government established an “Increasing Choice in Home Care” reform. This
reform as created to offer old age people with additional choices and control over home care
services (IBIS World, 2019). Receivers of the funding by the government to cover the aged
care service cost are now allowed to select their favored home aged care provider. They are
also allowed to anytime change their service provider. The time application for funding of an
individual is done, they will be assigned with their part of funding depending on the time they
have waited and, on their care, needs and personal circumstances.
Economic – Australia is presently dealing with a major economic transition. The
sector of aged care is performing a major role in shaping the economy of Australia. This
sector offers citizens of the country with a broad range of healthcare services, which enable
them to get access to healthcare whenever required (Deloitte, 2020). The sector is a key
supporter of the comfort and dignity of the older generation, delivering the services of aged
care to different communities and ultimately contribute to the economy of Australia. In
addition to this, the government of the country and individual Australians also spend money
on health goods and services. As per the analysis in the total health expenditure as around
$181 billion in 2016-17 (Einstein College, 2017).
Social – Apart from the positive impact of the residential aged care industry on the
economic situation of Australia, this industry also contributes to the developing the society. It

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is involved in offering salary, job, wages, etc. which generate returns to capital. As per the
analysis presented by Japara Healthcare (2020), the Australian industry of aged care is around
$20 billion+, which is involved in hiring around 224,000 staff members in over 1800
businesses that are involved in delivering services to 270,000 elderly and disabled people in
the country. Considering the contribution of Regis healthcare in the country’s development,
the company is involved in providing jobs to around 7500 professionals and developing their
careers (Regis Healthcare, 2018). However, the analysis of the present scenario that is the
outbreak of COVID-19 is majorly impacting not just the health of people but also the
economy. As per the analysis, this disease it majorly impacting old age people and children,
which increases the responsibility of Regis to give major focus in providing support to them
and offer treatment.
Technological – The aged care industry of Australia is presently experiencing
positive alterations in providing services due to technological advancements. The
development in digital technology is performing a huge role in the provision of Australian
aged care services (Japara Healthcare, 2020). There is the availability of a number of
powerful websites that allow the user to compare the services and read the reviews related to
individual facilities and their fees. Besides this, there is the availability of smartwatch
monitoring device and the robotic assistants that to follow the nurses.
Legal – The aged care service industry of Australia is regulated under the aged care
act 1997. This act covers the funded aged care of the government. It is concerned about
setting rules for things such as approval of providers, funding, people's right to receiving the
care, regulation, and quality of care (Commonwealth Australia, 2020). In addition to this, the
laws related to discrimination and diversity are also applied in the aged care industry. Regis
healthcare follows all the laws and regulations framed by the government in order to avoid
the exploitation of the workforce and customers.

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Environmental – The environment of the aged care industry is based on supporting
and promoting the activities and health along with active aging services for older people with
major disabilities like dementia. Regis healthcare understands its responsibility for
safeguarding the environment and focus on driving sustainable outcomes in every operation
(Regis Aged Care, 2020b). In order to attain this, they are focused on:
Culture – The company offers incentives and training to its employees as well as
residents to develop a positive culture that supports sustainable behavior.
Energy- Company confirms that it makes efficient use of natural resources and
reduces the emission of greenhouse gas from its operations.
Waste and water – The company focus on decreasing resource consumption, reuse the
things that can be done and recycling wherever possible (Regis Aged Care, 2020a).
The implication in terms of opportunity and threat
Opportunity – The possible opportunity in the Australian aged care industry is the
quick advancement of the technological background. Regis holds the opportunity to install
new and advanced technology in the business specially to encourage the use of digital
technology to allow its clients to effectively monitor the progress in their care.
Threat - The major threat for Regis Healthcare aged care is the outbreak of COVID-
19, which is not impacting the Australian society and economy, but also the world economy
and population. This is the major concern for Regis because most of the patients of this
disease are old age people.
In conclusion, it can be said that the aged care industry of Australia is gaining the
support of the government as well as private service providers in terms of caring for old age
people. This industry is considered to be the major contributor to improving the health of the

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community but also developing the economy. However, the current outbreak of COVID-19 is
a major threat to this industry.
Porter Five Force Model
The threat of new entrants – This threat is low in the industry due to the presence of
high entry barriers. The aged care industry is diverse from others since it is a customer-driven
market. This industry is considered to be competitive in terms of creating better services for
the consumer (Lewis, Gray & Baker, 2017). In order to make entry into this industry, the
provider needs to have good contact with a supplier, offering services at affordable prices and
a range of services. This is not easy for every business to provide.
The threat of Substitute product – The substitute product threat is low to moderate
because the type of demand an old age person has is similar in a number of cases. Besides
this, every provider involved in this industry offers different types of services for different
age groups person. In addition to this, the demand for aged persons with time changes and
increases.
Competition among existing players – This industry is majorly dominated by the
not-for-profit business (Doyle, 2018). Besides this, there are some of the well known private
aged care providers in the market which are giving competition to the residential aged care
service of Regis. This reveals that competitive rivalry in the industry is moderate to high.
Bargaining power of customer – The power of bargaining of the customer in this
market is low for the residential and home care packages because they are dependent on
funds and defined by the legislation.
Bargaining power of supplier – In the Australian market there are three types of
aged care services that are met by around 2000 suppliers, home care, residential care, home,
and community care. This reflects that the power of the supplier is moderate.

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The macro-environment and industry analysis are linked because both reveal that this
industry is customer-driven since it offers services as per the demand of the customer.
In conclusion, it can be said that the aged care industry of Australia is highly
competitive due to the dominating position of the not for profit organization. Besides this, it
is very tough for a new player to take entry in this industry due to the requirement of offering
high-quality services to the client.

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References
Commonwealth Australia. (2020). Aged care laws in Australia. Retrieved from
https://www.health.gov.au/health-topics/aged-care/about-aged-care/aged-care-laws-
in-australia
Deloitte. (2020). Australia’s aged care sector. Retrieved from
https://www2.deloitte.com/au/en/pages/economics/articles/australias-aged-care-
sector-economic-contribution.html
Doyle, N. (2018). Aged care providers: How can you stay competitive? Retrieved from
https://home.kpmg/au/en/home/insights/2018/04/aged-care-providers-stay-
competitive.html
Einstein College. (2017). Aged Care Industry In Australia Statistics. Retrieved from
https://www.einsteincollege.vic.edu.au/blog/aged-care-industry-in-australia-statistics
IBIS World. (2019). Aged Care Residential Services industry trends (2014-2019). Retrieved
from https://www.ibisworld.com.au/industry-trends/market-research-reports/health-
care-social-assistance/aged-care-residential-services.html
Japara Healthcare. (2020). Future Trends in Australian Aged Care. Retrieved from
https://japara.com.au/news/future-trends-in-australian-aged-care/
Lewis, S., Gray, A.J., & Baker, S. (2017). Towards a new age in aged care. Retrieved from
https://www.pwc.com.au/legal/assets/legaltalk/aged-care-reform-12may17.pdf
Regis Aged Care. (2020a). Environmental Sustainability Statement. Retrieved from
https://www.regis.com.au/ess/#statement
Regis Aged Care. (2020b). Sustainability. Retrieved from
https://www.regis.com.au/sustainability/

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Regis Aged Care. (2020c). Residential Aged Care Facilities. Retrieved from
https://www.regis.com.au/aged-and-home-support-centre/residential-aged-care-
facilities/
Regis Healthcare. (2018). Annual Report. Retrieved from https://www.regis.com.au/site/wp-
content/uploads/2018/09/regis-healthcare-annual-report-2018.pdf
Regis Healthcare. (2020). Corporate Profile. Retrieved from
https://www.regis.com.au/investor-information/corporate-profile/
Regis. (2020). Aged Care Facilities. Retrieved from https://www.regis.com.au/aged-care-
facilities