The Aravind Eye Hospital
The Aravind Eye Hospital, Mandurai, India: In Service of Sight
44118637, 44019122, 46650842 and 42441715
Executive Summary
Key Success Factors
Utilizing Porter’s Evolution of Global Competition, the following section identifies several key factors that led to Aravind’s success. The factor conditions, firm strategy and rivalry, related industries and demand conditions were fundamental to this eye hospital’s social and financial realization.
1. Factor Conditions: Labor and capital conditions contributed immensely to the success of Aravind. In terms of labor, Dr. V inspired his family members to take part in his vision, therefore creating a pipeline of committed and intellectual business partners. According to the case, as Aravind expanded from a small 20 bed hospital to a 600 bed hospital, his brother, sister, and nephew took on administrative roles in the hospital among the multiple family doctors who eventually joined the venture. The familial involvement led to many cost saving initiatives in Aravind’s capital investments. His brother, G. Srinivasan, a civil engineer contractor, constructed all hospital buildings at cost, freeing up capital to invest in other parts of the business. In addition, Dr. V provided continuous training and support to its personnel which likely contributed to their retention and attraction of eye doctors at the hospital.
2. Firm Strategy and Rivalry: Given that India contributed to one-third of the blindness in Asia, the Aravind strategy was clear. Dr. V’s vision for Aravind was to “bring eyesight to the masses of poor people in India, Asia, Africa, and all over the world.” The case does not explore any rivalry that existed for Aravind, but as this profession requires highly skilled professionals and expensive equipment to perform the services, it can be assumed that this market would have high barriers to entry. Although the government played an active role in blindness prevention care programs, they only allocated roughly $2 million
44118637, 44019122, 46650842 and 42441715
Executive Summary
Key Success Factors
Utilizing Porter’s Evolution of Global Competition, the following section identifies several key factors that led to Aravind’s success. The factor conditions, firm strategy and rivalry, related industries and demand conditions were fundamental to this eye hospital’s social and financial realization.
1. Factor Conditions: Labor and capital conditions contributed immensely to the success of Aravind. In terms of labor, Dr. V inspired his family members to take part in his vision, therefore creating a pipeline of committed and intellectual business partners. According to the case, as Aravind expanded from a small 20 bed hospital to a 600 bed hospital, his brother, sister, and nephew took on administrative roles in the hospital among the multiple family doctors who eventually joined the venture. The familial involvement led to many cost saving initiatives in Aravind’s capital investments. His brother, G. Srinivasan, a civil engineer contractor, constructed all hospital buildings at cost, freeing up capital to invest in other parts of the business. In addition, Dr. V provided continuous training and support to its personnel which likely contributed to their retention and attraction of eye doctors at the hospital.
2. Firm Strategy and Rivalry: Given that India contributed to one-third of the blindness in Asia, the Aravind strategy was clear. Dr. V’s vision for Aravind was to “bring eyesight to the masses of poor people in India, Asia, Africa, and all over the world.” The case does not explore any rivalry that existed for Aravind, but as this profession requires highly skilled professionals and expensive equipment to perform the services, it can be assumed that this market would have high barriers to entry. Although the government played an active role in blindness prevention care programs, they only allocated roughly $2 million