Developed in 1989 by Doctor. Jean Claude MARIAN, ORPEA began probably the most important leader in The european countries in controlling dependence's people through a specialized network of establishments. Involved with five diverse countries (Switzerland, Belgium, Italy, Spain, and France their original market) with 70 establishments with retirement homes, but likewise clinic to get care, treatment and psychiatric clinics seeing that 1999. In 2002, Hello. MARIAN choses to put ORPEA in the People from france stock exchange as a result of limit of its collateral. After 12-15 years of internal growth, ORPEA chooses the acquisition strategy to develop the group in the whole continent. Which has a revenue of 1, 429 billion of pounds, ORPEA is among the European leader in the dependence market (retirement home, proper care, treatment, etcвЂ¦). The main quest of ORPEA is to always increase their customized management of patients, within a qualitative approach and not a quantitative. This was made possible because of the highly training of the personnel, and a consistent assessment of the staff.
Having a compounded twelve-monthly growth price of the revenue of 12-15. 27%, a CAGR of the net income of 14. 3%, ORPEA and an organic development rate of 17% annually, is a quickly growing firm in the dependence market.
With this strategic examination we will certainly discuss regarding the strategy of expansion that ORPEA wants, the environmental analysis, what could impact negatively or positively the company, and in addition make a comparison with the three main competitors. Strategic examination
I/COMPETITIVE RESEARCH: Porter's five forces
1) Threat of Substitute Providers
Since 2012, the French authorities made a new pricing program based on the activity called T2A. This new pricing system is to finance healthcare facilities. Consist of terms, it implies that for one specific activity, the total amount the client has to pay is nearly the same out of all different private hospitals or treatment centers. As ORPEA gives a superior quality of solutions, the T2A is a risk for them. This pricing system will impact especially the short-term hospitalizations or perhaps specific procedures, which is still representing a big sum of the total revenues.
Stage which is a risk for ORPEA, is the climb of the home assistance. Many companies just like LVL Medical (located in the whole Western Europe) is a real rival of ORPEA. These kind of companies are treating little re-education by taking all the material that they will need into their patient's house, which in turn it could be better for them because they do not have to move, plus they can be in their house, with family, etcвЂ¦ 2) Menace of New Traders
The risk of seeing new entrants in this sector, or copie of new establishment of our rival is in fact seriously limited. Certainly, in Portugal, the law regarding medical features is really strict and tough. That is why, the very best strategy to take is to acquire some establishment previously open by simply some rivals.
3) Bargaining power of Suppliers
Thanks to the maturity of this sector, many software and equipment are becoming considerably more negotiable. In addition, ORPEA is definitely using the same materiel as they are using in hospital or medical center which usually implies that they can be already in the market, so the corporations like ORPEA have an improved power of arbitration. Plus, in this sector, there is no fashion or perhaps trend, all that the companies wish is an effective material.
4) Bargaining power of Clients
Once again, in this sector, the clients does not have a actually power of negotiating. The customers are coming for a long period of the time, or just for an modified re-education. As a way the public clinics are doing the strict minimum for their customers, in non-public establishments, they will really do love them and gives the best support as they can. That is why, you observe that the selling price of these solutions is really large and the consumer has to choose from the public services and the exclusive one.
5) Rivality against existing rivals
As we is able to see...