A Study On The Strategic Business Portfolio Of The Healthy Elderly Care Industry Of H Company

For decades,China’s elderly population has been growing rapidly,with an increasingly higher proportion among the total population.It is estimated that China’s elderly population will reach a peak by 2050.China steps into the aging society and elderly industry affiliated also ushers in a golden age of development.However,the elderly industry is still immature in China,and its development path and profit model are still in an exploring stage.The main research object in this thesis is H Company,who has been committed to the development of elderly care industry in recent years.It builds an industry chain of comprehensive health,which forms certain scale.However,H Company still faces problems and obstacles such as the slowdown in the development of its institutional-based elderly care business,the ineffectiveness in the expansion of its long-term elderly care insurance business and the failure on the profit making of its several businesses including community-based elderly care center,Internet + health management elderly care,elderly sojourn,elderly care products sales and etc,.Thus,the purpose of this thesis is to find out the crux of the problems by analyzing the current business operation status of H Company,and then propose the feasible strategic business portfolio.This thesis starts with an investigation on current situation of China’s elderly population,which triggers the discussion on the development of domestic elderly care industry.It then follows with an analysis on related concept of elderly care industry,discussion about domestic and overseas elderly care industry layout as well as related theoretical results.Then,the author continues to elaborate the status quo and future development trend of China’s healthy elderly care industry and point out problems exist in H Company’s current industrial layout based on the detailed analysis.Finally,this thesis ends with solutions and suggestions on updating strategic business portfolio and developing specific action plans.In order to make the whole research logic and scientific,literature review is done to master related knowledge on strategic management as well as theoretic foundation and research status of healthy elderly care industry.Then,case analysis is operated based on theories in strategic management discipline and marketing management discipline.Next,PEST model is adopted in the analysis on macro-environment where H Company is currently in.It is essential that H Company should conform to macro-environment and make decisions scientifically.Finally,with the help of BCG matrix model,H Company’s cash cows,stars,question marks and dogs are defined and clarified respectively.In view of all analysis above,conclusions are summarized as follows: H Company should stop blind expansion immediately and develop core strategic product instead.Besides,the author put forward that the “development strategy” should run through the whole process of the business of the long-term care insurance for the elderly and community home activities center;while “maintenance strategy” should act as the guidance in the operation of the business of elderly care institutions and hospital;and “harvest strategy” should be carried out thoroughly in the development of aged-tailored products;while finally “divestment strategy” should be adopted to manage sojourn care business.In addition,integration should be optimized in order to build an industrial chain of healthy elderly care in H Company.Moreover,strategic measures like reinforcing bed marketing management,promoting occupancy rates of nursing homes,strengthening information construction,preparing for talents reserve,withdrawing investment from unprofitable fields as well as decreasing resource waste should better to be adopted in H Company’s future strategic layout.