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BBPS4103
STRATEGIC MANAGEMENT
Matric Number:
NRIC :
H/P: 013-7458858
E-mail:liow@oum.edu.my
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Table of Content
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1.0 Introduction
This case analysis examines the external analysis of the environment, the
analysis of its immediate opportunities and threats, strength and weakness, and
further providing the alternative strategies in order to position itself vis-à-vis the other
The private healthcare in Malaysia has been growth at the tremendous rate
for the past decade. According to Malaysia Health minister, Dato Liow Tiong Lai on
his recent speech at ASIA HEALTH 2009 CONFERENCE in August 2009, there was
an increase the number of private hospital beds from 1,171 in 1980 to 11,689 in the
year of 2008, in term of numbers of private hospital in the same period, with less than
50 hospital to current 240 hospital and keep increasing. Currently there are about
25% of the total hospitals beds are in the private sector which share 43% of total
Perubatan Johor (KPJ) and Pantai group, which control some 19% and 16%
respectively of the market, the remaining market shares distribute among others 238
private hospitals, as most others private healthcare groups with associate hospital at
various location in Malaysia, Sunway Medical Central have only one single medical
hospital centralised in Petaling Jaya with market share of less than 1%.
education. The group encompasses two Main Board listed companies, Sunway
Holding Berhad and Sunway City Berhad. Sunway Holding Berhad core business is
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in construction, building, manufacturing and quarry while Sunway City Berhad is
education industries.
specialized and tertiary medical care services in Malaysia, this medical specialist
centre is under one of the business sector of Sunway City Berhad. It located at
Under its latest major expansion and renovations plans for the hospital building, the
hospital areas are expanded from 22,219M² to 60,803M². The medical centre
equipped with advanced medical technology with professional clinical expertise and
The Vision
This vision statement defines this health care organization’s focus on the
clear direction to steer the organization into future to be a world class healthcare
organization of choice, to meet this vision, its must have excellent services in term of
quality and its competitiveness, this vision provides the direction which is vital for
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The Mission
We committed to provide:-
To provide professional, innovative quality services that exceeds customer
expectation.
To provide value added services.
To provide modern, comprehensive and safe facilities and environment.
To provide continuous development of human capital.
To provide satisfactory return to shareholders.
translating their vision of the organization into the reality by prioritized their
services here means provides the best medical treatments that is exceed the
with safe and comfortable environment. At the same time, it also has duty to fulfill the
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2.0 Corporate Core Values
achieve organization goals and objectives. All leaders will create a good
Result Driven – Ensure short term and long term goals are met in a
The corporate values of Sunway Medical centre reflects the value and
and quality professional services that exceed customer’s expectation; to achieve this,
its must have an effective management team which have common goals and quality
result driven evaluation for their performance. Fulfill and exceed customers
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3.0 SWOT Analysis
The following SWOT analysis will focus on identifying and evaluating external
Opportunities
like USA, Canada and UK to cross boarder to seek affordable and low cost
Medical Tourism is fast booming and get attention in Developing country. According
to the report from Association of Private Hospital Malaysia, the revenue from health
tourism was increase and growing at 30% a year from year 2000 to 2007, and
forecast to continue until year 2010, it is expected total of RM584 million in medical
continue to grow. On top of this, a large portion of older age of 65 years and above
population will increase the demand for healthcare services. The country’s healthcare
Together with rising household income and improved life quality, private hospitals like
Sunway Medical Centre may benefit by capture this business segment opportunities.
unhealthy urbanized fast food which causes obesity problem, as well as increasing
number of smokers, all these leading to lifestyle related diseases like respiratory
diseases and cancer, diabetes, high blood pressure and heart-related diseases,
while treatment for all these will increase healthcare spending and demanding,
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Sunway Medical Centre may benefits from this trends, at the same time, private
hospitals may have more people looking for preventive healthcare services due to
growth in healthcare industry. The high technology facilities enable more critical
sickness and dieses can be cure, as well as more advance diagnosis and prevention
private hospitals advertised effectively, through the web portal, patients can accesses
activities are creating new products and services, Sunway Medical Centre may not
directly involved but will benefits indirectly for their business sector.
Threats
The global economic downturn had resulting decline in purchasing power, this
indirectly affecting patients seeking medical treatment when this groups of patients
try to seeks medical assistance from public hospitals, the private healthcare sector
like Sunway Medical Centre may see a lower than expected patients visits and
admission, at the same time, increasing number of new setting up private hospitals
will further threaten the patients source for Sunway Medical Centre, all of these
factors will further lead to lower utilization of expensive medical equipment facilities,
as well as high wages human resources for this sector, all of these will added up and
increase the hospital’s operation cost causes the hospital can’t offers their services
with a competitive price, this will be major threat to Sunway Medical Centre.
Another threat for Sunway Medical Centre is the brain drain where lack of
qualified doctors and specialists, this situation worsen when many new private
hospitals from oversea are setting up their branches in Malaysia, for example The
Columbia Asia Medical group are setting up another 4 medical centres in the country,
this will casing the shortage of human resources in medical sector especially the
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experienced doctors, this may become key threat for Sunway Medical Centre of any
From political perspective, under the Private Hospital Act 1971, government is
monitoring and regulates private hospitals operation, this act set certain requirement,
for example, all recruitment of nurses must least 60% from local, and this may lead to
regulation may become threats for continual growth in the healthcare industry which
Strength
businesses, Sunway Medical Centre have strength derived from its parental
financial stability for future development. SUNWAY is well known recognized brand
name in property, construction and leisure sectors, Sunway Medical Centre is directly
benefited from this by delivering same level of quality services as its sister
companies did, this become one of the strength in marketing their products and
services.
inherited the good management approaches and corporate polices into their
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patient safety, Asia Hospital Management award, .and many others, this TQM
approach is one of their strength in their total services and operational functions.
Sunway Medical Centre also have advantage of it wide marketing chains network
from its sister companies in other sector, example in healthcare tourism segment,
both Sunway Group’s leisure and entertainment sector may inter-related and
affiliated to Tan Sri Jeffrey Cheah School of Medicine, Monash University Malaysia,
only a few of Malaysia private hospitals have affiliated to medical institution, example
University Malaya Specialist Centre S/B and Kumpulan Perubatan Johor ( KPJ ).
This is one of the strength not only in medical research and development, but also
provided the medical human resources needs where most of private hospitals are
Weakness
hospitals like Kumpulan Perubatan Johor and Pantai group which have many
hospitals covering most strategic cities in Malaysia, this weakness become more
critical in term of patients sources when other private specialist hospitals nearby try
to capture same area patients source, the competition will become fierce. In term of f
medical services ranges that offers in private healthcare, compare to these industry
key players like Pantai’s Group which offers wide range of medical services through
comprehensive range of medical services due to its single location medical centre.
In Malaysia, ratio of doctors and patients still very low compare to developed
country, public and private hospitals are facing the doctor shortage, Sunway Medical
Centre too facing shortage of medical personals and brain drain problem especially
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4.0 Impact of External Threat
One of major threat of Sunway Medical Centre is the competitive demand and
shortage of medical human resources in healthcare industry, this brain drain problem
where lack of qualified doctors, specialists and experienced nurses keep continuing
with opening of new private hospitals, many Malaysia doctors and specialists are
choose to adopted for oversea that have better remuneration packages and quality of
life, similarly for many highly qualified nurses also choose to higher remuneration
This threat is giving great impact for Sunway Medical Centre competitiveness in
the industry. Shortage of experienced medical doctors and nurses will seen as
hindrance against any expansion plan for Sunway Medical Centre, as well as existing
delayed due to lacks of specialist doctors, the patients will gradually turn away to
others medical specialist hospital for treatment, this will definitely affecting hospital’s
Sunway Medical Centre must have strategic plan management with more creative
and innovative in order to remain competitive and sustain their competitive over
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5.0 Recommended Strategy Implementation
centre had been identified from SWOP analysis, few recommendations of strategies
can be implemented in future that can ensure organization success and superior
performance.
for private healthcare hospitals especially to Sunway Medical Centre, this market
segment have high market growth rate where government forecast there will be 30%
increase annually of people entering country for medical purposes, and by year 2010,
the segment is expected to bring in some MYR 2.0 billion in revenue. With such big
market, Sunway Medical Centre must capture more market share by combining the
strength of its sister company in hospitality and leisure sector by linking up the hotel
Oversea patients may not come alone for medical purposes, they will have
hospitality, travel and leisure will be seen attractive for them. Furthermore, Sunway
Medical Centre have cost advantage compare to competitor in neboring country like
Singapore which have higher medical cost, as well as Thailand where political
Changing life style and unhealthy eating habits have caused rapid growth of
many critical diseases which some cases may required advanced and expensive
medical equipment facilities, some of this special equipment facilities still not
available in Malaysia, even local patients need to seek this special medical treatment
this increasing patients source by upgrading its medical facilities into more advance
and high technology nature so that can compete with its rivalry. Based on its strong
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financial track records shown by Sunway’s Group, financially should be its strength
facilities.
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6.0 Recommended Solutions to Weakness and Threats
Medical Centre focuses on this special medical services and treatment which other
hospitals can’t offer, definitely it will offset this weakness. While others private
hospitals all are offering almost same medical treatment, Sunway Medical Centre
should aims for niche market which the key idea is specialization, invest in special
medical equipments for special critical diseases treatment where other hospitals can’t
offer. In the Blue Ocean business strategy concern, Sunway Medical Centre need to
develop uncontested market space and make competition irrelevant, instead swim to
“ red ocean “ of offering services that have high competition, this niche services
should introduce where other competitors have not yet step in.
The brain drain where shortage of qualified nurses, doctors and specialists
become key threat for Sunway Medical Centre, the situation keep worsen when
number of newly set-up hospitals keep increasing. To overcome this brain drain
problem, Sunway Medical Centre may consider the strategies to allow doctors or
specialists to have their private wing or clinics in the hospital, this will allow doctors or
specialists to earn extra income while serving to the hospital. Some private hospitals
are implemented this strategy, as well as public hospital where brain drain happened
most critical here. In addition to this, Sunway medical centre should consider profits
Technology (ICT) into their process. For example by ultilised the internet online
facilities, the patient will access the information of required specialist doctor, pre-
registered and make appointment online prior to admission. This will not only shorten
the waiting time for patients, it also simplified the hospital’s admission process and
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manpower required, this indirectly offset the problem of manpower shortage. Sunway
Medical Centre must apply ICT approaches comprehensively into their organization
7.0 Conclusion
lifestyle. On the other hand, healthcare tourism is fast developing sector in healthcare
industry which have large market potential in earning revenue, Sunway Medical
Centre, combining its group’s strength in travel, leisure and hospital sectors, should
focus its strategy on capturing market share of this healthcare tourism, which is
competitors in the industry, Sunway Medical Centre should opted for the Blue Ocean
business strategy by aims for niche market which the key idea is specialization,
invest in special medical equipments for special critical diseases treatment where
services responds to external and internal challenges maximize the use of ICT in
revenue.
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8.0 References
http://www.sunway.com.my/
http://www.sunway.com.my/sunmed/main.asp
Gan, K.K (2007) PINK OF HEALTH: A research of the local healthcare industry
Retrieved on 5.10.2009.
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