KPJ's+SWOT+Analysis

KPJ's SWOT Analysis


 * < ==__Strength__==

1. Dominant presence in Malaysia
KPJ Healthcare Berhad has been in the healthcare industry for more than 20 years giving them advantage of experience in the industy thus creating a strong company name recognition with their presence with more than 20 community based hospital across Malaysia. (Morgan JP, 2012)

2. KPJ remains a defensive play with long term growth prospects
KPJ aimed to grow further by adding one or two new hospitals each year and already has eight announced expansion plans in the pipeline. It was also eyeing a bigger share of the medical tourism pie, striving to grow revenue contribution from less than 10 per cent to between 15 per cent and 25 per cent in three to four years. (KPJ Healthcare Berhad, 2012)

3. Market leadership
KPJ Healthcare is the largest private hospital operator in Malaysia with 20 hospital and over 2,500 beds. It is estimate that KPJ has a leading 20% share of private hospitals bed in Malaysia and leading 25% share of private inpatient admission. (Standard Charted Analyst, 2012)

4. Strong relationship with doctors.
KPJ healthcare had 750 medical consultants, which translates to a 7% share of private doctors in Malaysia. KPJ has established and reputable system in place for centralised payment and billing, helping it in recruitment of doctors. (Standard Charted Analyst, 2012) ||< ===__Weaknesses__===

1. Corporate governance risk
KPJ Healthcare Berhad does engage in related-party transaction with companies under the Johor Corp umbrella since they are ultimately owned by the state of Johor. They may have use any advance national agenda to detriment of minority stakeholders.(Morgan JP, 2012)

2. Failure in overseas expansion
KPJ has failed to manage their operation of its hospital in Bangladesh and Saudi Arabia. This give them weakness that they are not well plan and handle expansion across foreign country. (Standard Charted Analyst, 2012) ||
 * < ===__Opportunities__===

1. Structural growth of private Healthcare
The public healthcare system is currently highly stretched from 46% expenditure and 70 % admission however expectation on Malaysia who can afford to shift to private healthcare due of the service given and better equipment giving KPJ chance to growth. In addiiton that Malaysia has a rapid growing and ageing population. (Standard Charted Analyst, 2012)

2. Potential for medical tourism
Malaysia government has plan to spur growth in medical tourism market. Although this plan is has just started and not in the robust growth yet however could be a significant if success. (Morgan JP, 2012)

3. KPJ remains a defensive play with long term growth prospects
Strained public healthcare provides opportunities for the private sector to play a bigger role.KPJ aimed to grow further by adding one or two new hospitals each year and already has eight announced expansion plans in the pipeline. It was also eyeing a bigger share of the medical tourism pie, striving to grow revenue contribution from less than 10 per cent to between 15 per cent and 25 per cent in three to four years. ||< ===__Threats__===

1. Rising competition
Other rival company such as Pantai and Columbia has been aggressively expanding around Malaysia in an attempt to seek a bigger slice of Malaysia's healthcare pie. (Morgan JP, 2012)

2. Limited supply of qualified medical professional
There is a lack of qualified doctors and nurses to cater to the growing demand for healthcare services in Malaysia thus may delay expansion plans of private healthcare players resulting stiff competition of staffing talent. (Standard Charted Analyst, 2012) ||