Aravind Eye Hospital

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Category: Business and Industry

Date Submitted: 10/18/2012 09:32 PM

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The Aravind Eye Hospital, Madurai, India: In service for sight.

SWOT Analysis:

Strength:

Aravind eye hospital model is great success and has opened so many hospitals in short period of time.

Excellent staff members within the family.

No debt and more than 50% surplus.

Name recognition as a goodwill.

Mostly owned and operated by family.

Facilities to train and develop own manpower.

Founder has a great vision towards working humanitarian rather than making money.

Weakness:

Paying less than market value could affect acquiring talent.

Some location lacks budget to operate.

Lack of technology advancement.

Insufficient rewards and recognition for the staff.

Not sufficient location for large number of people.

Overlapping duties of staff.

Opportunity:

India’s population is more than a billion out of those billion 30 million are classified as blind and 2-3 million are added annually.

There is always opportunity to expand within India and south Asian countries since there is an Indian influence in those counties and understand Indian way of doing business and service along with language.

Opportunity to expand in poor African countries since many people is blind in poor countries.

Threats:

India’s political risk is high and there is always a chance of government intervention.

Threats of religious attack.

Due to high poverty rate in India many people cannot afford to pay and there is always a risk of running out of operating cash.

Threats of workers going on strike to raise their concern such as high pay, benefits could be negative publicity.

Problem statement

How can Dr. V expand his vision of spreading the Aravind model to every nook and corner of India, Asia and Africa or whenever there is blindness?

I think this case deals about expanding the model of Aravind model to other parts of India and developing world. Coping Aravind model to other parts is very challenging because Aravind model is based on deep commitment to do well...