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The Raksha Diagnostic Case

Raksha Diagnostics is an Indian pathology lab service provider with a network of laboratories and collection centers across India. It faces challenges from other large competitors that offer both pathology and radiology services, generating more revenue. The diagnostic industry in India is highly competitive with pricing pressures. Raksha Diagnostics aims to double its revenue in five years by expanding into radiology services. It must develop go-to-market, marketing, and operations strategies to successfully enter the radiology domain and scale operations nationwide.

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AMEYA BAPAT MBA 2021-23 (Delhi)
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155 views4 pages

The Raksha Diagnostic Case

Raksha Diagnostics is an Indian pathology lab service provider with a network of laboratories and collection centers across India. It faces challenges from other large competitors that offer both pathology and radiology services, generating more revenue. The diagnostic industry in India is highly competitive with pricing pressures. Raksha Diagnostics aims to double its revenue in five years by expanding into radiology services. It must develop go-to-market, marketing, and operations strategies to successfully enter the radiology domain and scale operations nationwide.

Uploaded by

AMEYA BAPAT MBA 2021-23 (Delhi)
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The Raksha Diagnostic Case

Raksha Diagnostics (RD) is a home-grown pathology lab service provider, providing


pathology services pan India through their assortment of test services primarily through the
Business to Consumer (B2C) Model. The company offers core testing and diagnosis. Its
customers include individual patients, hospitals, corporate customers, and other healthcare
providers. RD’s country-wide network comprises a national reference laboratory in
Hyderabad, supported by 339 clinical laboratories, ~3200 patient service centres and over
10879 pickup points. It has an exhaustive catalogue of tests, and it keeps adding newer and
more effective tests over time.

The Indian diagnostic sector is a heavily saturated sector with several large players offering
services in pathology and radiology domains. Raksha Diagnostics is a pathology-only player
with zero exposure to radiology. Hence it has not been able to churn out as much earning
from its operations unlike major players in this industry.
Raksha Diagnostics Income Statement with Forecasts
Challenges in the diagnostics space in India:

● Challenge in entering new geographies


Due to the magnitude of India’s Geographical area and diversity in demographics,
disease profiles, healthcare systems face huge challenges. Local players, who have an
advantage owing to their experience with local market conditions, compete against
large diagnostic players. In addition, most players have a significant presence in
metros and Tier I cities. Tier II, III, and IV cities, on the other hand, have not been
extensively tapped and are mostly managed by local independent players providing
rudimentary testing facilities. Nonetheless, firms have begun to gain access to the
interiors to grow the volumes by working with local players, resulting in
consolidation. After establishing centres in new places, national diagnostics players
take the time to connect with doctors who have established ties with regional
players (since referrals account for a large portion of this sector's revenue). Doctors
take their time, which is also dependent on how renowned national players' services
are in rural communities. These national firms require time to scale up their
operations to gain a larger market share in comparison with their unorganised peers.
● Ultra-Competitive Pricing: The diagnostics market in India is fiercely
competitive, with unorganised firms accounting for around 84% of the market. In
terms of number of patient samples and diagnostic test cost, this enhances
competition between organised and disorganised diagnostic chains.
● Ever Evolving Technology: Medical equipment and analysers are continuously
improving in terms of technology. Diagnostic facilities must keep up the pace to stay
ahead of the competition. These modifications, however, not only need considerable
capital expenditures, but also raise maintenance expenses. This is especially
important for smaller players that are short on cash.

The diagnostic business has emerged as a promising investment opportunity in India's


burgeoning healthcare sector, and it is one of the country's fastest-growing service areas.
Diagnostics is an industry based on economies of scale, with the cost of processing a sample
being the most crucial measure. Existing players are still in the early phases of their
development cycles, with a lengthy runway ahead of them. Given their many years of
experience, brand trust and recall, global quality standards and accreditations, wide test
menus, extensive patient touchpoints to service patients locally, value-added offerings, and
ability to sustainably grow in new markets, one can be optimistic about national diagnostic
chains in India. In the medium term, potential industry consolidation, organic and inorganic
expansion, as well as their excellent balance sheets and return ratios, would provide
tailwinds to their growth.
DELIVERABLES

Create a market entry plan for Raksha Diagnostics in the Radiology space and include the
following in your solution:
1. Create a Go-to-Market strategy to double Raksha Diagnostic’s Top Line in the next
5 years
2. Create a comprehensive marketing and advertising strategy for the entry of Raksha
Diagnostics into the radiology (imaging) domain
3. Create a detailed operations plan for Raksha Diagnostics all over India

INSTRUCTIONS

1. Presentations would be evaluated on the clarity and structure of the solutions,


adequate operations strategy, and a scalable plan to achieve the above-mentioned
financial goals
2. The team is required to submit a solution in 5-7 slides (excluding introduction and
thank you slides) on the D2C platform in PDF/PPT format by 13/02/2021 11:59 pm

------------------------------------------------All the Best-----------------------------------------------------

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