Apollo Hospitals Differentiation Through Hospitality Case Study Analysis

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Apollo Hospitals Differentiation Through Hospitality Case Study Analysis

Business is presently one of the biggest food chains worldwide. It was established by Henri Apollo Hospitals Differentiation Through Hospitality in 1866, a German Pharmacist who initially released "FarineLactee"; a combination of flour and milk to feed babies and decrease mortality rate.
Business is now a multinational company. Unlike other international companies, it has senior executives from various nations and attempts to make decisions thinking about the entire world. Apollo Hospitals Differentiation Through Hospitality presently has more than 500 factories around the world and a network spread throughout 86 countries.


The function of Apollo Hospitals Differentiation Through Hospitality Corporation is to enhance the lifestyle of people by playing its part and supplying healthy food. It wants to help the world in forming a healthy and much better future for it. It likewise wishes to motivate individuals to live a healthy life. While making certain that the company is succeeding in the long run, that's how it plays its part for a much better and healthy future


Apollo Hospitals Differentiation Through Hospitality's vision is to provide its consumers with food that is healthy, high in quality and safe to consume. Business pictures to develop a trained labor force which would help the company to grow


Apollo Hospitals Differentiation Through Hospitality's mission is that as presently, it is the leading company in the food market, it thinks in 'Good Food, Good Life". Its mission is to provide its consumers with a range of choices that are healthy and best in taste as well. It is focused on providing the very best food to its clients throughout the day and night.


Apollo Hospitals Differentiation Through Hospitality has a broad variety of items that it uses to its customers. In 2011, Business was listed as the most rewarding organization.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has actually laid down its goals and objectives. These goals and goals are listed below.
• One objective of the company is to reach no land fill status. (Business, aboutus, 2017).
• Another goal of Apollo Hospitals Differentiation Through Hospitality is to waste minimum food during production. Most often, the food produced is wasted even prior to it reaches the clients.
• Another thing that Business is working on is to enhance its packaging in such a way that it would help it to lower those complications and would also ensure the delivery of high quality of its products to its consumers.
• Meet international requirements of the environment.
• Construct a relationship based upon trust with its customers, service partners, workers, and government.

Critical Issues

Just Recently, Business Business is focusing more towards the method of NHW and investing more of its earnings on the R&D innovation. The country is investing more on acquisitions and mergers to support its NHW strategy. The target of the business is not achieved as the sales were expected to grow higher at the rate of 10% per year and the operating margins to increase by 20%, offered in Exhibit H. There is a requirement to focus more on the sales then the innovation technology. Otherwise, it may result in the declined revenue rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The existing Business method is based on the idea of Nutritious, Health and Health (NHW). This method deals with the concept to bringing modification in the client choices about food and making the food things much healthier concerning about the health concerns.
The vision of this method is based on the key approach i.e. 60/40+ which merely means that the products will have a score of 60% on the basis of taste and 40% is based on its nutritional value. The products will be made with extra nutritional value in contrast to all other items in market getting it a plus on its dietary content.
This method was embraced to bring more delicious plus healthy foods and beverages in market than ever. In competitors with other business, with an objective of retaining its trust over clients as Business Business has actually gained more trusted by clients.

Quantitative Analysis.

R&D Spending as a portion of sales are declining with increasing real amount of spending shows that the sales are increasing at a greater rate than its R&D costs, and allow the business to more spend on R&D.
Net Revenue Margin is increasing while R&D as a percentage of sales is decreasing. This indication also shows a green light to the R&D costs, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its spending on mergers, acquisitions and R&D development instead of payment of debts. This increasing financial obligation ratio present a threat of default of Business to its investors and could lead a decreasing share rates. Therefore, in regards to increasing financial obligation ratio, the firm should not spend much on R&D and must pay its present debts to decrease the danger for financiers.
The increasing danger of financiers with increasing financial obligation ratio and decreasing share prices can be observed by huge decrease of EPS of Apollo Hospitals Differentiation Through Hospitality stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow perception structure of customers. This sluggish growth likewise impede business to more spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of estimations and Graphs given in the Displays D and E.

TWOS Analysis

2 analysis can be utilized to obtain numerous strategies based upon the SWOT Analysis provided above. A quick summary of TWOS Analysis is given in Exhibit H.

Strategies to exploit Opportunities using Strengths

Business must introduce more innovative products by big amount of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It might likewise provide Business a long term competitive advantage over its rivals.
The worldwide growth of Business should be concentrated on market recording of establishing countries by growth, drawing in more customers through client's loyalty. As developing countries are more populated than developed countries, it could increase the customer circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisApollo Hospitals Differentiation Through Hospitality should do mindful acquisition and merger of organizations, as it might affect the consumer's and society's perceptions about Business. It ought to get and combine with those business which have a market credibility of healthy and nutritious business. It would improve the perceptions of consumers about Business.
Business should not just spend its R&D on innovation, instead of it must also focus on the R&D costs over assessment of expense of different healthy products. This would increase expense performance of its items, which will lead to increasing its sales, due to decreasing costs, and margins.

Strategies to use strengths to overcome threats

Business ought to move to not just developing but also to developed nations. It ought to broaden its circle to various countries like Unilever which runs in about 170 plus nations.

Strategies to overcome weaknesses to avoid threats

It needs to get and combine with those nations having a goodwill of being a healthy company in the market. It would also enable the business to use its possible resources effectively on its other operations rather than acquisitions of those organizations slowing the NHW strategy development.

Segmentation Analysis

Demographic Segmentation

The demographic division of Business is based on four aspects; age, gender, earnings and occupation. For instance, Business produces a number of products associated with infants i.e. Cerelac, Nido, etc. and related to grownups i.e. confectionary products. Apollo Hospitals Differentiation Through Hospitality items are rather budget-friendly by nearly all levels, but its significant targeted customers, in regards to income level are middle and upper middle level customers.

Geographical Segmentation

Geographical segmentation of Business is made up of its existence in practically 86 countries. Its geographical segmentation is based upon 2 primary factors i.e. average earnings level of the customer in addition to the environment of the region. For example, Singapore Business Business's division is done on the basis of the weather condition of the region i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and lifestyle of the client. For example, Business 3 in 1 Coffee target those clients whose lifestyle is rather hectic and don't have much time.

Behavioral Segmentation

Apollo Hospitals Differentiation Through Hospitality behavioral segmentation is based upon the attitude knowledge and awareness of the customer. Its extremely healthy items target those clients who have a health conscious mindset towards their intakes.

Apollo Hospitals Differentiation Through Hospitality Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand, there are two options:
Alternative: 1
The Company should spend more on acquisitions than on the R&D.
1. Acquisitions would increase total properties of the company, increasing the wealth of the business. Costs on R&D would be sunk cost.
2. The company can resell the acquired systems in the market, if it fails to implement its strategy. Nevertheless, quantity invest in the R&D might not be revived, and it will be considered completely sunk cost, if it do not offer potential outcomes.
3. Investing in R&D provide sluggish growth in sales, as it takes long period of time to introduce a product. Nevertheless, acquisitions supply quick results, as it provide the business already developed product, which can be marketed not long after the acquisition.
1. Acquisition of business's which do not fit with the business's values like Kraftz foods can lead the business to deal with mistaken belief of customers about Business core values of healthy and nutritious products.
2 Big costs on acquisitions than R&D would send a signal of business's inefficiency of developing ingenious items, and would outcomes in customer's dissatisfaction.
3. Big acquisitions than R&D would extend the product line of the business by the products which are already present in the market, making company not able to introduce new innovative items.
Alternative: 2.
The Company needs to spend more on its R&D instead of acquisitions.
1. It would enable the company to produce more ingenious products.
2. It would provide the business a strong competitive position in the market.
3. It would make it possible for the business to increase its targeted customers by introducing those items which can be offered to a completely brand-new market section.
4. Ingenious products will offer long term benefits and high market share in long term.
1. It would reduce the profit margins of the company.
2. In case of failure, the entire costs on R&D would be considered as sunk expense, and would affect the business at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of business, which could offer a negative signal to the investors, and could result I declining stock prices.
Alternative 3:
Continue its acquisitions and mergers with significant spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the company to introduce new ingenious items with less threat of converting the spending on R&D into sunk expense.
2. It would offer a favorable signal to the investors, as the total possessions of the business would increase with its significant R&D costs.
3. It would not affect the profit margins of the company at a big rate as compare to alternative 2.
4. It would supply the company a strong long term market position in terms of the business's general wealth in addition to in terms of ingenious products.
1. Risk of conversion of R&D spending into sunk expense, greater than option 1 lesser than alternative 2.
2. Risk of misunderstanding about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Intro of less variety of innovative products than alternative 2 and high number of ingenious products than alternative 1.

Apollo Hospitals Differentiation Through Hospitality Conclusion

RecommendationsBusiness has stayed the top market player for more than a decade. It has actually institutionalised its methods and culture to align itself with the market modifications and customer habits, which has actually eventually enabled it to sustain its market share. Though, Business has actually established substantial market share and brand identity in the metropolitan markets, it is recommended that the company should focus on the rural areas in terms of establishing brand name loyalty, awareness, and equity, such can be done by producing a particular brand allotment technique through trade marketing techniques, that draw clear difference between Apollo Hospitals Differentiation Through Hospitality items and other rival items. Moreover, Business should utilize its brand name image of safe and healthy food in catering the rural markets and likewise to upscale the offerings in other categories such as nutrition. This will enable the business to establish brand name equity for newly presented and currently produced items on a greater platform, making the reliable use of resources and brand name image in the market.

Apollo Hospitals Differentiation Through Hospitality Exhibits

PESTEL Analysis
Governmental support

Altering requirements of worldwide food.
Enhanced market share. Changing understanding in the direction of much healthier products Improvements in R&D and also QA divisions.

Introduction of E-marketing.
No such effect as it is favourable. Issues over recycling.

Use resources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Greatest because 4000 Highest possible after Organisation with less development than Organisation 7th Least expensive
R&D Spending Highest possible since 2003 Highest after Company 5th Lowest
Net Profit Margin Highest considering that 2007 with fast development from 2009 to 2011 Due to sale of Alcon in 2018. Virtually equal to Kraft Foods Consolidation Virtually equal to Unilever N/A
Competitive Advantage Food with Nutrition as well as health factor Greatest number of brands with lasting techniques Largest confectionary as well as refined foods brand in the world Largest dairy items and mineral water brand name worldwide
Segmentation Center and also upper middle level customers worldwide Specific customers together with house group Any age as well as Revenue Consumer Teams Center as well as top middle degree customers worldwide
Number of Brands 2nd 1st 4th 1st

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 62399 163557 718792 226583 836834
Net Profit Margin 7.22% 1.89% 14.86% 1.96% 78.48%
EPS (Earning Per Share) 97.95 9.33 9.68 6.16 33.46
Total Asset 233567 974534 738417 462498 87946
Total Debt 59448 25514 83987 91829 58553
Debt Ratio 14% 21% 72% 55% 43%
R&D Spending 4523 5424 8589 4962 2343
R&D Spending as % of Sales 7.85% 5.52% 1.12% 7.93% 6.15%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations