1. Aravind Eye Care System
Is it Blue Ocean Move ?
Prepared by:
Mahipal G. Chauhan
Nirav Jadav
2. Flow of Presentation:
About Aravind eye care system
Mission
Mile stone
Pre Aravind eye care system
Pre BUM
Post BUM
ERRC Model
Strategic Canvas
Profit Model
Three tiers of Non Customer
Sequences of BOS
Six Conventional Model
Why Blue ocean move?
Bibliography
3. About Aravind Eye Care:
Aravind Eye Hospital was founded in 1976, by Dr. G. Venkataswamy, a man
known to most of us simply as Dr. V.
He started with 11 bed hospital in rented house.
Over the years, this organization has evolved into a sophisticated system
dedicated to compassionate service for sight.
The Aravind Eye Care System now serves as a model, for India, and the rest of
the world.
Aravind Eye Hospitals try to maintain a ratio of 1:2 between paying and free
patients, which keeps the enterprise financially viable.
4. Aravind eye care System:
5 owned hospitals
4 managed hospitals
A training institute
Eye bank
Research lab
Drug and eye care equipment manufacturing arm (Aurolab)
An international training facility (LAICO) which consults and trains eye hospitals
in other developing countries
Conducts over 285,000 eye surgeries and provides over 2.4 million persons with
outpatient eye care per year at the 5 Aravind owned hospitals
5. Relevance
37 million people are blind worldwide.
India has 12 million blind people, more than any other country, and 200 million
people in need of eye care.
In India, simple cataract surgery can restore vision to 7.5 million blind
people, while refraction and a pair of spectacles can restore vision to 2.4 million
people.
Cost Advantage and Affordability
Costs are kept low through:
Manufacturing its own intraocular lenses (IOLs) used in cataract surgery
(outsourcing not an option as no affordable lenses being manufactured at time)
High surgeon productivity: 2600 surgeries/doctor/year
Eye care is made affordable through cross-subsidisation: charging patients able to
pay (~30% of patients) and using the collected fees to subsidize poor patients
(~70% of patients)
11. Four Actions Framework +
Eliminate/Reduce/Raise/Create Grid
Raise
Eliminate Quality Benchmark
Emotional Facility for Masses
Focus on Primary health care
Create
Manufacturing own eye care equipment and
Reduce lenses
Cost
Create eye care Professional team
Price
Research industry for Eye and Diabetes.
12. Strategic Canvas:
6
5
4
3 Govt.Hospital
Private Hospital
Aravind eye care
2
1
0
Price Quality Facility Technology Reach Home delivery Education
service institute
13. Profit Model of Blue Ocean Strategy
The profit model of blue ocean strategy shows how value
innovation typically maximizes profit by using the three levers of
strategic price, target cost, and pricing innovation.
The Strategic Price
($50 to $ 300)
The Target Profit
(25$)
The Target Cost
(25$)
Streamlining and Cost
Partnering
Innovations
Pricing Innovation
14. Three Tiers of Noncustomers
High end
Customers
Middle Class
Below Poverty
Line People
15. Sequence of Blue Ocean Strategy
Buyer utility
Work on Purchase, Delivery
,Convenience , Use and Risk No-- Rethink
Yes
Price
Low Price
No-- Rethink
Yes
Cost
Self training, IOL manufacturing ,
Research study , Decrease time No-- Rethink
Yes
Adoption
Increase man power efficiency ,
Technological innovation No-- Rethink
Yes
A Commercially
Viable Blue Ocean
Idea
16.
17. Why Blue Ocean Move?
Create uncontested market space
Make the competition irrelevant
Create and capture new demand
Break the value-cost trade-off
Align the whole system of a firm’s activities in pursuit of differentiation and low cost
Better Eye care specialist made.
