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Content

• Introduction
• PESTEL Analysis
• SWOT Analysis
• Porter’s Five Force Model
• Conclusion
• References

Introduction

For the purpose of this assignment I have taken Advance care Homes as the company. I have also taken three models – PESTEL, SWOT and Porter’s five forced for the analysis of Advance Care. These three tools are the strategic tools that are used in order to analyse the business strategy of the business. The same is used to decide how company can find out various aspects of the business which can then be used to find out the probable strategy for the company.

Advance care is one of the oldest aged care home in Australia. The analysis of the same is as follows:

PESTEL Analysis

Political

The Advance Aged Care home is impacted by the political situation of the region. If the political situation is volatile, then it is bound to have an impact on the Advance Aged Care. If the governments are changing rapidly then they come with their own policies for healthcare. Any adverse change in the policy can lead to negative impact on the business of Advance Aged Care (Edwards, 2012).

Economic

The economic situation of the country also has bearing on the Advance Aged Care. If people don’t have adequate income, then they would rather not choose the services of Advance Aged Care hence this could impact the business adversely.

Social

The social factor also has bearing on the Advance Aged Care. The reason for the same is that if the demographic of the region is very young and there are less aged people then there would be less business for the Advance Aged Care.

Technological

The technological factors also have bearing on the business of Advance Aged Care. If the technology such as AI gets advance and it can do the most of the caring part of the house care, then there would be very less need of Advance Aged Care.

Environmental

Advance Aged Care operates in Australia and it has to abide by the environmental laws. If he operations of Advance Aged Care are impacting the environment adversely then there would be problem for the same as government might revoke the license to operate.

Legal

The last part of the analysis is legal factors. Here, the business has to abide by the various laws pertaining to the healthcare sector. It has to abide by the pricing and hygiene rules and so on. The volition of the same can lead to cancellation of licence (Pankaj 2014).

SWOT Analysis

SWOT is used for the internal as well as external factors as it analyses the strengths of the company as well as industry and it also analyses the weaknesses of the company as well as industry. It thus helps company to leverage on strengths to mitigate weaknesses and then exploit opportunities and downplay threat.

Strengths

The Advance Aged Care home is one of the oldest hence reliable aged care home. Further, the aged care home has also been the one with good customer satisfaction record hence enjoys much higher business from same customer than other care homes.

Weakness

The weakness of the aged care home is that it operates in highly competitive industry where the pricing power is very limited. The industry is highly fragmented and competitive hence the buyer can choose from any care home (Kvint, 2013).

Opportunities

As population is turning old, it allows it to have many patients. Australian government also provides incentives hence this could benefit the business.

Threats

The threat to the business includes the fact that hospitals have also now started providing similar care as aged care homes. Further, technology has been making many of the roles redundant. Hence, this could have created trouble for such business.

Porter’s Five Force Model

Risk of Supplier: A provider is the person who gives merchandise or administrations to your organization. For instance, the individual who fabricates and offers wood is the provider of a furniture organization. You can comprehend your provider’s energy by noting the accompanying inquiries. How far do providers control costs in this market? Think about the quantity of provider, how huge their business is, the means by which simple or troublesome it is to change to various providers.

In this case, Advance aged care doesn’t face this risk as it has bulk purchase system which allows it to get discount.

Risk of buyer: A purchaser is the individual who purchases or buys your items or administrations. For instance, a couple who is getting hitched needs to purchase furniture so they are the purchaser of a furniture organization. Answer the coming inquiries to evaluate your purchaser’s energy. How far do purchasers control costs in this market? Once more, consider their number and the significance of every purchaser to your business. To a few organizations, there are just couple of purchasers who have much power and control.

Here the risk of the same is high for Advance care for the reason that buyers have many options to chose from.

Risk of competition: A contender is any substance that contradicts your organization in an opposition. For instance, for Mercedes, an auto that keeps running on gas, BMW is thought about contender. What number of contenders do you have? How solid would they say they are?

This risk is higher as there are many companies which are either expanding or entering. This is a highly fragmented industry (Kemp, 2012).

Risk of Substitution: A substitute is any item or administration that exchanges or happens of your item. Once more, for Mercedes the substitute will be Tesla, an auto that keeps running on power. How exceptional is your item contrasted with different ones accessible in the market? What number of comparable substitutes exist? Improve quality or cost?

This risk is high as hospitals have started providing similar services.

Risk of new entrants: another section is an organization starting its business in an indistinguishable market from yours. Attempt to answer the accompanying: Are there any new organizations opening up in your market? What amount does it cost to enter your market?

This risk is low as there is regulations and license to enter into this industry and same is difficult to get.

Conclusion

For the purpose of this assignment I have analysed Advance Care Homes as the company by using PESTEL, SWOT and Porter’s five forces. These three tools are the strategic tools that are used in order to analyse the business strategy of the business. The same is used to decide how company can find out various aspects of the business which can then be used to find out the probable strategy for the company.

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