The managing director of Apollo Health Street (AHS), a health care business process outsourcing (BPO) firm headquartered in Pennsylvania, United States, was pondering two dilemmas: securing short term growth for his company, and finding new approaches to compete in a changing industry. AHS was itself a subsidiary of Apollo Health Enterprises Ltd. (AHEL), an integrated healthcare company located in Hyderabad in southern India.
AHS had been growing at 80 per cent compound annual growth rate (CAGR) since 2005, aiming to reach $100 million in sales by March 2010. Its objective was to increase annual revenue to $500 million within three years in a highly competitive space, which if successful would transfer AHS into the top three BPO firms in the healthcare sector. Should it secure short-term increase?
Industry analysts had forecast that over the following five to a decade, health care BPO would become unrecognizable from its current form. The managing director believed that although scaling up would strengthen the organization 's standing for the short term, the organization should also be looking for options to stay applicable to the customer. Should AHS help determine the form of health care BPO later on? What new ways of competing could the company pursue?
PUBLICATION DATE: May 03, 2011 PRODUCT #: W11101-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
Related Case Solutions & Analyses:
Digital Imaging in 1995: Opportunities in the Descent to the Desktop
MSA: The Software Company–Planning the AMAPs Product Line
Competition and Product Variety
Ellen Moore (A): Living and Working in Bahrain
How Citi Successfully Implemented Community Engagement With Limited Resources
Financial Crises and Firm Performance
Hong Kong’s Trading Industry: Challenges from Mainland China
THE GUEST IS GOD: AIRBNB EXPANSION PLAN IN INDIA
THE ZURICH INSURANCE GROUP AND ITS FLOOD RESILIENCE ALLIANCE (A)
MERCADONA. A GLOBAL CORPORATE FINANCE CASE
