Case Analysis on

Thyrocare: Disrupting the Indian Medical

Diagnostic Industry

Presented By
Smrutiranjan Das || S. Nandhini|| Kausik Bhagat
Strategic Management
 Case Introduction

Porter’s Five Forces Model

Competitor analysis

Contents Strategies of Thyrocare to Disrupt the Indian Market

Recommended Future Strategies

Conclusion
Case Introduction
• Thyrocare upset the Indian medical diagnostic sector in the mid-1990s and gained market
share progressively over the next two decades to become one of India's top five rivals.
• Thyrocare developed and maintained a competitive advantage and entered businesses that
are closely connected. By 2017, the diagnostic sector had become incredibly competitive,
and competitors were striving to imitate Thyrocare's distinctive business model.
• Scaling stand-alone enterprises, expanding online and digital aggregators, the emergence
of replacements such as self-test kits, and tightening restrictions led to severe margin
pressures.
Case Introduction
• Vision: To become the preferred choice of the medical fraternity and the end–consumer in
clinical diagnostic services by setting the highest benchmarks in quality, expertise and
services.
• Mission: Being in the healthcare industry, it is the patient who is both our primary
customer and concern. Ensuring that the right value is given at right time to the right
patient is the test we undergo every day successfully.
Porter’s Five Forces Model

• Competition in the industry :

A. The market was highly competitive as no restrictions in terms of entering into the
market.
B. 4 listed pan India chains, one listed regional chain & many unlisted regional centres
are there.
C. Stand-alone laboratories and small diagnostic centres served almost 48 per cent of
the industry & more than 100000 diagnostic centres are there.
Porter’s Five Forces Model

• Threat Of New Entrants:

A. Entry into this market was very easy, Thus increasing competition in the industry.
B. The capital required is very low to start this business & regulations are not that
strict, which pushed people to enter & start the centres at the local level.
• Bargaining Power of Customer:
A. The bargaining power of customers was very low & which is good for the industry.
B. Patient visits these centres once or twice a year, so the companies here charge a
high amount as there is a mandatory need for the customer they focused on
accuracy rather than price.
Porter’s Five Forces Model

• Bargaining Power of Supplier:

A. The bargaining power of suppliers is very high for chain centres spread across the
country & low for stand-alone local centres.
B. As the majority of the equipment was imported & few equipment suppliers are
there the chains due to bulk demand can negotiate easily with suppliers.
• The threat of Substitute Products:
A. As there is no alternative to a diagnostic test, this force is very low.
B. As of now no technologies are developed to replace diagnostics, all are in the
research phase.
 Competitor analysis
Brand Service offered
A vast range of tests offered
Hospital Lab Management
SRL Diagnostics Research In Clinical Trial
Tests molecular diagnostics to 205 Labs & processed 29.3
cytogenetic, flow cytometry,
DR. LalPathLabs immunohistochemistry, and
microbiology
Thyrocare Biochemistry, Testing
equipment
Technology Preventive health & wellness
Market Share Promotors
359 labs & 125000 tests/day Part of Fortis Hospital Group
Managing 100 Hospital Founded 1995
Largest Diagnostic Company
in India. (15 million samples)
Founded in 1949 & the oldest
million samples in 2017 diagnostic chain
One central Lab, Six Regional Founded in 1996
Lab & 1200 franchise partners
14.3 million samples
Strategies of Thyrocare to Disrupt the Indian
Market

• Broadly Thyrocare disrupted the Indian diagnostic market by differentiation:

A. Unique Business Model
B. Target Segment
C. More Focused on core Competency
D. Adoption of new technology
E. Employed upstream franchise model allowed them the economy of scale
F. Gained customer loyalty by providing accurate & transparent test results
G. Adopted cost leadership approach by focusing specific variety of tests
 Expansion Strategy:
Recommended Future • Thyrocare can expand the under-developed markets
as they are focused on the wellness & preventive
care segment which has huge growth potential in
future.
• They can also offer other testing options to cater to
more no of patients.
Collaborations:
Strategies

• Tie-up with other corporations to increase market

share.

Explore new markets:

• Focus on a specialized synergetic healthcare system
by investing more in technology.
Conclusion

• In conclusion, the diagnostic sector is primarily reliant on machinery and analytics, the
first movers in this field. In comparison to competitors, the company is more receptive to
adopting technology and has a distinctive business model.
• Thyrocare's aim of diversifying biochemistry, focusing on clinical and wellness business,
and becoming global in the future gives it a competitive advantage over its rivals.
• But It is conceivable for competitors to imitate the company and seize market share;
therefore, constant innovation will be the key to success in this industry.
Thank YOU