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PGSM
ASSIGNMENT COVER
SECTION A:
PERSONAL PARTICULARS
Programme
MBA PGSM
Module Subject:
MARKETING
Module code:
MKT 600
Name of Lecturer:
Assignment title:
Assignment
Submission date
Name of Group
Members
31 MAY 2014
IMPORTANT:
1. All completed assignments must be accompanied by PGSM front cover sheet when submitted.
2. Students are required to submit their work through MORE Portals to ensure the originality of their
work.
3. All references must be fully cited in Harvard/ APA notation.
4. Plagiarism in any form will result in severe penalties.
5. Work submitted within up to 7 calendar days late = 10 marks subtracted.
6. Work submitted up to 10 calendar days late = 20 marks subtracted.
7. Work submitted more than 10 calendar days late = 1 marks awarded.
Declaration: I declare that
a) No part of this assignment has been copied from any other persons work except where due
acknowledgement is made in the text.
b) No part of this assignment had been written for me by any other person except where such
collaboration has been authorized by lecturer concerned.
c) All grades obtained by students are final. Appeal can only be made (on FAIL case only) to the
Academic Borad along with a payment of RM 100.00 to formalise the Process.
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d) The University/ College use plagiarism detection software.
youbang
Student Signature ___________________________
Date
31 MAY 2014
1.0 Introduction
1.1 Industry
Healthcare is related to the prevention and treatments of illness. According to the
latest Global Industry Classification Standard, the healthcare industry is comprised of
two main sectors. The first is made up of the companies who manufacture and supply
healthcare equipment or provide healthcare related services. The second includes the
companies that involved in research and development (R&D), production and
marketing of pharmaceuticals and biotechnology products. (1)
1.2 Company
Sime Darby Healthcare Group is one of the big players in the Malaysia healthcare
industry providing health care services. Sime Darby Healthcare is a business unit under
the Sime Darby Berhad. Sime Darby Health Care started operating in 1985 with the
establishment of Sime Darby Medical Centre Subang Jaya. Other entities under the
Sime Darby Healthcare Group are the Sime Darby Specialist Centre Megah, which is a
day-surgery and outpatient centre, and the Sime Darby Nursing and Health Sciences
College, in Kuala Lumpur. Sime Darby Healthcare has the vision to become the gold
standard healthcare provider in the region. The company also has a number of health
care services under different centres such as blood diseases centre, cancer and
radiosurgery centre, health screening centre, comprehensive epilepsy management,
menstrual clinic and many more.
the total RM230 billions allocated for the 10th Malaysia Plan. In addition, one of the
10th Malaysia plan focuses on attracting talents. According to this plan, the
government is taking steps to attract foreign or Diasporas Malaysia talents to work in
Malaysia by issuing open visas to highly skilled foreign professionals and loosen others
restriction. (2)
2.11(ii) Economic
Although healthcare services are needed by any individuals, the fluctuation of
economy still affects the performance of the industry. During the time of economic
downturn, the performance of private health care providers will always be affected
because people can shift to other alternative that is the public hospitals, which required
a lower cost for treatments. The implementation of government policy and encouraging
competition on healthcare service industry has caused the industry under an aggressive
competitive market. (3)
2.11(iii) Socio-Cultural
As the world develops in terms of medical technology, life expectancy continues to
increase and people today are more concerning on the quality of their lives. According
to UNICEF, life expectancy in Malaysia has increased from 70 in year 1990 to 75 in
year 2009; 71 years for male and 77 years for female. By the social trend, it is now
getting more important for Malaysians to pursuit better quality life and it is now easy to
find health products in the market and people lining up to check their health in hospitals.
Malaysians prefer to seek for private healthcare services rather than government
healthcare services because of time-consuming and service quality. Purchasing medical
insurance therefore has become a necessity for this generation in order to cover high
expenses on private healthcare service
2.11(iv) Technological
Development in medical technology has helped and still helps modern society to
have better quality of life. Technology plays very important part in the healthcare
industries. Currently, one of the finest technologies in the industry is TomoTheraphy
System. This technology consists of precise radiation therapy for cancer patients. This
technology is able to deliver the desired dose to the tumour while minimising exposure
to non-tumour areas of cancer patients. With this technology, doctors are able to keep
track of the cancerous cells.
2.11(v) Environmental
One of the environmental factors that affect healthcare industry lately is the
influenza of A (H1N1). As the disease is spreading, people tend to seek for better
healthcare and healthcare centres if compared to the past. A (H1N1) had created greater
awareness of potential healthcare threats among the citizen of Malaysia. This will lead
to the increase in demand for healthcare services therefore; Sime Darby can gain
opportunities out of this disaster. For instance, Sime Darby Medical Center Subang
Jaya was chosen as one of the private hospitals that are involved in the management of
influenza H1N1 thus, it brings about an increase in demand for their services.
2.11(vi) Legal
The Act which governs the medical care provisions is known as the Private
Healthcare Facilities and Services Act 1998 and it is enforced by Ministry of Health.
Under section 106 of the act, the minister may make regulations prescribing a fee
schedule for any or all private healthcare facilities or services or health related facilities
or services. All healthcare facility or service must comply with the fee schedule
enforced by Ministry of Health. Thus, government can always interfere in the
healthcare industry by regulating the fees charged by private healthcare providers. As a
result, Sime Darby may need to take extra consideration when deciding on the mark-up
margin for their services. (4)
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2.12(ii) Suppliers
As hospitals strive to improve productivity and control the cost and quality of care,
many are demanding their suppliers' assistance. Suppliers are developing new sales
strategies to build long-term, service-oriented partnerships with selected major
accounts. Material handlers then transport material from the main store room to various
secondary store rooms in wards throughout the hospital as the inventory in those wards
diminishes.
2.12(iii) Intermediaries
Marketing intermediaries such as reseller, marketing service agencies, physical
distribution firms and financial intermediaries help Sime Darby Healthcare to develop
marketing programs As a healthcare provider, there were many types of strategies
offered by outsource with regard to how to help health professionals become hospital
performance information intermediaries for their customer including creating and
disseminating information that is credible and easily accessible to health professionals.
By keeping the information updated, Sime Darby Healthcare responds to the changing
environment efficiently and effectively.
2.12(iv) Competitors
The main competitors in private healthcare industry are Pantai Hospital, Prince
Court Medical Centre and Columbia Asia. Pantai Hospital, under Pantai Holdings
Berhad, is one of the biggest hospital chain companies in Malaysia. It owns and
operates 10 hospitals around Malaysia having a total of 1,409 beds with an average of
100,000 admissions a year. Prince Court Medical Centre (PCMC) is a 300-bed private
healthcare facility located in Kuala Lumpur. It is fully owned by Petronas, Malaysias
national petroleum company. With its powerful support, PCMC could be designed like
hotel to make itself as the most luxurious hospital in Malaysia with world class
facilities. Columbia Asia is a chain of hospitals in Asia with 16 medical facilities across
not only Malaysia but also India, Indonesia and Vietnam. There are a total of 8 hospitals
around Malaysia. Unlike other giant hospitals, Columbia Asia also has its facilities in
residential areas instead of overcrowded central cities. Although it is smaller in size, it
keeps expanding its business around the world getting recognition from regions.
2.12(v) Government
For the 2010 budget, the government has announced to allocate a sum of RM 14.8
billion to enhance health facilities and provide equipment, increase supply of medicines,
intensify research and enforcement activities as well as building more hospitals and
clinics. The thrust of the health sector in the 9th Malaysia Plan (9MP) for the years
2006-2010 is Toward achieving greater health through consolidation of services. By
deciding the 9MP, the government put greater emphasis on bridging quality healthcare
to all the Malaysians and developing the industry.
(6)
illness since the specialists are the ones who have the ability to cure the sickness of the
patient. For instance, maternity could now be done in private clinic. Patient doesnt
have to give birth in hospital any more. It is the future of medical industry but for now,
the threat is still low.
2.23 Competitive Rivalry
Rivalry has also been seen to be significant private hospitals; approximately 30%
of all patients would receive similar treatment in one of the 254 hospitals or same day
facilities, taking considerate pressure off the public hospital system. Technology
however, and medical advances and specialty services have been driving a strong trend
towards private hospitals specializations with more of the industry players are
developing a significant competition for niche areas of expertise such as coronary care,
eye surgery, mental health care and maternity admissions. With patients having a
freedom of choice to choose the hospital they want and to be seen by a specialist they
trust based on records and reputation, some hospitals have found it to be fit to set up
strategies that enable them to fend off competition they face and lure more patients to
their clinics.
2.24 Bargaining Power of Suppliers
In terms of medical equipment and pharmaceutical products, supplier power is
considered high. The supplier power as a variable has the potential to be most critical
for members of the for profit private hospital in managing viable hospital units. As
mentioned before, private hospital relies on key supply companies for their quality of
supplies and timely services and products to their various hospitals location. The
supplier power is also considered to be high regarding the credible forward integration
by suppliers of the equipment and medical suppliers. Suppliers hold latent power that
they can use in negotiation conditions of supplying their equipment to the private
hospital. (8)
segmentation
targets
services
for
certain
socioeconomic
unique aspects of care to women. For these reasons, significant opportunity exists to
develop services targeted to women, and even to certain age groups within this
population, that can make a meaningful distinction in the marketplace, improve quality
of care, and increase patient satisfaction. These opportunities can range from focused
niche service development to comprehensive approaches that incorporate a wide range
of programs. (10)
the growth. It is very important for Sime Darby to evaluate the external environmental
forces in order to utilize the opportunities and reduce the effects from the threats. With
the analysis of the micro and macro environmental factors, Sime Darby Healthcare can
always plan for the future and react accordingly.
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5.0 References
(1) Abhijith Anand, Samuel Fosso Wamba, (2013) "Business value of
RFID-enabled
healthcare
transformation
projects",
Business
Process
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(8) Eamonn Ambrose, Donna Marshall, Daniel Lynch, (2010) "Buyer supplier
perspectives on supply chain relationships", International Journal of
Operations & Production Management, Vol. 30 Iss: 12, pp.1269 1290
(9) Victoria Serra-Sastre, Alistair McGuire (2012), Technology Diffusion and
Substitution of Medical Innovations, in Kristian Bolin, Robert Kaestner
(ed.) The Economics of Medical Technology (Advances in Health Economics
and Health Services Research, Volume 23), Emerald Group Publishing
Limited, pp.149-175
(10) T.P. Beane, D.M. Ennis, (1987) "Market Segmentation: A Review",
European Journal of Marketing, Vol. 21 Iss: 5, pp.20 42
(11) Adam Lindgreen, Michael Antioco, Roger Palmer, Tim van Heesch, (2009)
"High-tech, innovative products: identifying and meeting business customers'
value needs", Journal of Business & Industrial Marketing, Vol. 24 Iss: 3/4,
pp.182 - 197
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