REVIEW OF CASE STUDYAPOLLO CLINICS (AHLL)

Major problem discussed in the case study are Failed to meet target of opening 250 clinics in span of 6 years Selection of 1 in 100 franchisee aplications Apollo doctors not visiting clinics Consumer perception of higher end image. Not allowing new docs and experienced doctors dont have time . Extensive focus on not permitted to have lower consulatation fees extensive focus on quality and ambience

questions to be asked Q.should company continue with franchisee model ? Q.should company devise new strategy ?

Analysis:
First problem that is creating problem is that company failed to meet its target of opening 250 clinics in 6 years. So far company has managed to open 50 clinics only . so there can be folowing problems: - firstly AHLL is not targeting right people for franchisee aplications. - Selection criteria is too rigid (selecting 1 out of 100) . - Focus is more on existing clinics then expansion.(ambience and quality issues. 1. There is a possibility that company is receiving large applications from totally inappropriate applicants for franchisee, that can be a reason for low selection rate . for this company target should review its invitation criteria and preferably change it

focus should be on increasing applications by - advertising in national dailies or in medical magazines . - Arranging seminars for doctors. - Advertising in medical journels. 2. clearly mentioning eligibility conditions to reduce totally unacceptable applications Another factor can be the selection criteria that can be too rigid . selection of 1 in 100 says that there is a problem in selection criteria . Too many conditions and too many statuary requirements may be the reason . So revising selection criteria should be considered on hand . 2. AHLLs focus is more on quality and ambience issues in existing clinics . this has diluted companys focus . 3. True entrepreneurs whether or not in medical field should be selected 4. Selection should include psychometric analysis of applicants. 5. It can also consider, converting local clinics into Apollo clinics for faster brand expansion. 6. It can also consider giving financial assistance to worth entrepreneurs 7. In some selected cities say metros , AHLL can open company owned clinics for better control and better services(dual model-ownership franchisee model) Second thing that should be taken to account is that Apollo hospitals doctors dont visit Apollo clinics . Thats a serious issue as clinics derives its image from its super speciality doctors of Apollo hospitals. If they dont go there then , then clinics looses its Edge over local physicians or its positioning So Apollo should made it compulsory for its docs to regularly visit Apollo clinics once or twice in a week . New doctors should be given chance to practice , which will also help to bring down the costs of operations. Such doctors can give primary treatment to patients . this is particularly important as super specialist docs charges high fees for consultation and they have limited time .

Regular New doctors plus weekly visits of super specialists from ALHL will serve the purpose. It will help in leveraging the cost while maintaining brand equity .

Thirdly customer perception of HIGH END IMAGE . Apollo brand is consider to be high end hospital chain for rich people ,this is concern for a company in a country with large middle class people .