Aravind: A Profile in Growing a Health Care Facility

by: Paul Clyde

Publication Date: March 25, 2010
Length: 12 pages
Product ID#: 1-428-586

Core Disciplines: Base of the Pyramid, Strategy & Management

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Description

Aravind, a network of hospitals in India, is the largest provider of eye care in the world. Aravind performs approximately 270,000 surgeries per year and serves over 2 million patients. Aravind’s leadership has set the goal of one million surgeries and 100 hospitals by 2015. This case asks students to evaluate Aravind’s history, strategy, organizational structure, etc. to determine what steps it needs to take to reach that goal. Particular questions are focused on human resources, process standardization, and business model development. This case is included in Module 5 of the course Business Thought & Action.

Teaching Objectives

After reading and discussing the material, students should:

  • Begin to assess the comparative advantage of a company and its partners in order to determine the most effective relationship between them as the company looks to expand.
  • Explain why comparative advantage can be very difficult to determine and is not the same as asking what the company does.
  • Analyze the benefits and risks of vertical contracting.
  • Consider the effects of expansion on human resource practices.