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Dr. Dey's Labs Case Analysis
YASHLEEN KAUR
BBA
INTRODUCTION
 Dr. Sukumar has made significant progress by opening 21 labs from only one that he inherited from his
father, and he has an expansion plan in the works.
 His chain of laboratories is ranked among the top three in the country, with six labs that are accredited
and equipped with cutting-edge equipment.
 The lab with revenue of Rs.75 crore is among top three pathological labs in India with Atlantic (Rs.77
crore) and Pacific (Rs.55 crore).
 There are about 20,000 to 100,000 standalone labs engaged in routine pathological business in India,
INTRODUCTION
 His six labs have been accredited nationally whereas many large hospitals have not even thought of
accreditation.
 The bar coding and automated registration of patients do not allow any identity mix-ups. Even routine
tests are conducted with highly sophisticated systems.
 Technical expertise enables them to carry out 1650 variety of tests.
 Same day reports are available for samples reaching by 3 p.m. and by 7 a.m. next day for samples
from 500 collection centers located across the country.
BACKROUND
 In 1995, Dr. Sukumar acquired his father Dey's laboratory.
 The lab was located in Delhi and performed a wide range of pathological and clinical examinations.
 The firm's founder/vision leader's serves as a road map and direction for the organization.
 As a result, when Dr. Sukumar acquired the lab from his father, he already had a vision for his company.
 Dr. Sukumar's objective at the time of his inheritance was to develop a one-lab enterprise into a network
of pathology labs spanning the length and breadth of the country
 . And, as a result, outlining what the organization wished to become in the long run
SWOT ANALYSIS
STRENGTHS
 Cost effective technology
 Strong and well-developed manufacturing= ASE
 Clinical research and trials
 Knowledge based, low- cost manpower in =science & technology
 Proficiency in path-breaking research
 High-quality formulations and drugs
 High standards of purity
 Non-infringing processes of Active =pharmaceutical Ingredients (APIs)
 Future growth driver
 World-class process development labs
 Excellent clinical trial centers Chemical and process development competencies
WEAKNESSES
 Low Indian share in world pharmaceutical market =about 2%)
 Lack of strategic planning • Fragmented capacities
 Low R&D investments
 Absence of association between institutes and industry
 Low healthcare expenditure
 Production of duplicate drugs
OPPORTIUNITES
 Incredible export potential
 Increasing health consciousness
 New innovative therapeutic products
 Globalization
 Drug delivery system management
 Increased incomes
 Production of generic drugs
 Contract manufacturing
 Clinical trials & research
 • Drug molecules
THREATS
 Small number of discoveries
 Competition from MNCs
 Transformation of process patent to product =agent (TRIPS)
 Outdated Sales and marketing methods
 Non-tariff barriers imposed by developed countries Strategic Management
CASE STUDY QUESTIONS
1. What vision Dr. Sukumar has at the time of inheritance
of Dey’s Lab? Has it been achieved?
 Dr. Sukumar's initial ambition was to grow his single pathological laboratory into a nationwide network of
pathological laboratories.
 He is well on his way to realizing his goal, as a handful of labs have already opened and others are in the
works.
 His chain of laboratories is ranked among the top three in the country, with six labs that are accredited and
equipped with cutting-edge equipment. With all of this on the table, Dr. Sukumar has gone a long way and is
on his way to crystallizing his vision
 Nonetheless, as compared to the external benchmark from the US market, the market share is low.
2. For growth what business strategy has been
adopted by Dr. Sukumar?
 Dr. Dey's Lab has mostly chosen for internal expansion rather than acquisitions or joint ventures as a
business strategy.
 The rationale behind this method is since Dr. Sukumar believes there are few current laboratories that
match the quality criteria.
 Pharma Capital has been awarded a 26 % share in the company to help support its expansion and raise
financing.
2. For growth what business strategy has been
adopted by Dr. Sukumar? ( CONTI..)
 Intensification is the internal growth approach that Dey's lab is pursuing.
 They have attempted to attain the following goals under intensification: -
 Market penetration
 Market development
 Product development
3. What is the marketing strategy of Dr. Sukumar
to overtake its competitors?
 Services marketing - By offering rapid service, home service for collecting samples, and reporting,
Dey's lab utilised the notion of services marketing. It boosted convenience for its consumers by
providing 500 collection sites and dependable service through bar coding and computerised patient
registration.
 Augmented marketing - It refers to Dey's lab's endeavour to deliver a large number of tests, coding of
patients, utilising highly advanced tools, rapid availability of findings, maintaining high levels of
sanitation, and making reports available in the shortest period possible. They are not only meeting
their consumers, but also exceeding their expectations.
3. What is the marketing strategy of Dr. Sukumar to
overtake its competitors? ( CONTI..)
 Dr. Sukumar’s marketing strategy is superior to its competitors. It provides a high level of customer
services because of the following:
 Product mix: It possesses technical expertise to conduct 1650 variety of tests.
 Quality: The laboratories use modern methods to conduct tests. Even routine tests are conducted with
highly sophisticated procedures. Technology such as bar coding and automated registration of
patients is also used. Thus there are no mistakes in the identity of samples. There is also daily
sanitization and validation of lab equipment's.
 Speed: Laboratories are working round-the-clock. Further, using modern systems the company is able
to deliver test results faster.
 Convenience: There are 500 collection centers for the laboratory, thereby the reach is more.
Additionally, system of collection of samples from home also provide convenience to the patients and
others.
THANK YOU

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Dr. Dey's Labs Case Analysis.pptx

  • 1. Dr. Dey's Labs Case Analysis YASHLEEN KAUR BBA
  • 2. INTRODUCTION  Dr. Sukumar has made significant progress by opening 21 labs from only one that he inherited from his father, and he has an expansion plan in the works.  His chain of laboratories is ranked among the top three in the country, with six labs that are accredited and equipped with cutting-edge equipment.  The lab with revenue of Rs.75 crore is among top three pathological labs in India with Atlantic (Rs.77 crore) and Pacific (Rs.55 crore).  There are about 20,000 to 100,000 standalone labs engaged in routine pathological business in India,
  • 3. INTRODUCTION  His six labs have been accredited nationally whereas many large hospitals have not even thought of accreditation.  The bar coding and automated registration of patients do not allow any identity mix-ups. Even routine tests are conducted with highly sophisticated systems.  Technical expertise enables them to carry out 1650 variety of tests.  Same day reports are available for samples reaching by 3 p.m. and by 7 a.m. next day for samples from 500 collection centers located across the country.
  • 4. BACKROUND  In 1995, Dr. Sukumar acquired his father Dey's laboratory.  The lab was located in Delhi and performed a wide range of pathological and clinical examinations.  The firm's founder/vision leader's serves as a road map and direction for the organization.  As a result, when Dr. Sukumar acquired the lab from his father, he already had a vision for his company.  Dr. Sukumar's objective at the time of his inheritance was to develop a one-lab enterprise into a network of pathology labs spanning the length and breadth of the country  . And, as a result, outlining what the organization wished to become in the long run
  • 6. STRENGTHS  Cost effective technology  Strong and well-developed manufacturing= ASE  Clinical research and trials  Knowledge based, low- cost manpower in =science & technology  Proficiency in path-breaking research  High-quality formulations and drugs  High standards of purity  Non-infringing processes of Active =pharmaceutical Ingredients (APIs)  Future growth driver  World-class process development labs  Excellent clinical trial centers Chemical and process development competencies
  • 7. WEAKNESSES  Low Indian share in world pharmaceutical market =about 2%)  Lack of strategic planning • Fragmented capacities  Low R&D investments  Absence of association between institutes and industry  Low healthcare expenditure  Production of duplicate drugs
  • 8. OPPORTIUNITES  Incredible export potential  Increasing health consciousness  New innovative therapeutic products  Globalization  Drug delivery system management  Increased incomes  Production of generic drugs  Contract manufacturing  Clinical trials & research  • Drug molecules
  • 9. THREATS  Small number of discoveries  Competition from MNCs  Transformation of process patent to product =agent (TRIPS)  Outdated Sales and marketing methods  Non-tariff barriers imposed by developed countries Strategic Management
  • 11. 1. What vision Dr. Sukumar has at the time of inheritance of Dey’s Lab? Has it been achieved?  Dr. Sukumar's initial ambition was to grow his single pathological laboratory into a nationwide network of pathological laboratories.  He is well on his way to realizing his goal, as a handful of labs have already opened and others are in the works.  His chain of laboratories is ranked among the top three in the country, with six labs that are accredited and equipped with cutting-edge equipment. With all of this on the table, Dr. Sukumar has gone a long way and is on his way to crystallizing his vision  Nonetheless, as compared to the external benchmark from the US market, the market share is low.
  • 12. 2. For growth what business strategy has been adopted by Dr. Sukumar?  Dr. Dey's Lab has mostly chosen for internal expansion rather than acquisitions or joint ventures as a business strategy.  The rationale behind this method is since Dr. Sukumar believes there are few current laboratories that match the quality criteria.  Pharma Capital has been awarded a 26 % share in the company to help support its expansion and raise financing.
  • 13. 2. For growth what business strategy has been adopted by Dr. Sukumar? ( CONTI..)  Intensification is the internal growth approach that Dey's lab is pursuing.  They have attempted to attain the following goals under intensification: -  Market penetration  Market development  Product development
  • 14. 3. What is the marketing strategy of Dr. Sukumar to overtake its competitors?  Services marketing - By offering rapid service, home service for collecting samples, and reporting, Dey's lab utilised the notion of services marketing. It boosted convenience for its consumers by providing 500 collection sites and dependable service through bar coding and computerised patient registration.  Augmented marketing - It refers to Dey's lab's endeavour to deliver a large number of tests, coding of patients, utilising highly advanced tools, rapid availability of findings, maintaining high levels of sanitation, and making reports available in the shortest period possible. They are not only meeting their consumers, but also exceeding their expectations.
  • 15. 3. What is the marketing strategy of Dr. Sukumar to overtake its competitors? ( CONTI..)  Dr. Sukumar’s marketing strategy is superior to its competitors. It provides a high level of customer services because of the following:  Product mix: It possesses technical expertise to conduct 1650 variety of tests.  Quality: The laboratories use modern methods to conduct tests. Even routine tests are conducted with highly sophisticated procedures. Technology such as bar coding and automated registration of patients is also used. Thus there are no mistakes in the identity of samples. There is also daily sanitization and validation of lab equipment's.  Speed: Laboratories are working round-the-clock. Further, using modern systems the company is able to deliver test results faster.  Convenience: There are 500 collection centers for the laboratory, thereby the reach is more. Additionally, system of collection of samples from home also provide convenience to the patients and others.