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Ministry of Health -Egypt Strategic Plan Business Case

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Mohamed el Agamy
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Ministry of Health – Egypt
Strategic Plan
Business Case

Prepared by..

Mohamed el Agamy
Table of contents
Introduction 4
1. Mission / Vision 5
2. External Environment Analysis 6
2.1. PESTEL

2.1.1. Political Factors 6

2.1.2. Economic factors 7
2.1.3. Social factors 8
2.1.4. Technological factors 9
2.1.5. Ecological factors 10
2.1.6. Legal factors 10
2.2. Five Forces Analysis 12

2.2.1. Bargaining Power of. Suppliers 12

2.2.2. Bargaining power of Buyers 12
2.2.3. Substitute product 12
2.2.4. Entry barrier 13
2.2.5. Rivals 13
I. Strategic Map 13
II. Strategic Type 14
III. Four Corner Analysis 16
IV. Value Discipline Triad 18
2.3. Portfolio Analysis 19
2.3.1. Industry Attractiveness Matrix 19
2.3.2. IM: Industry Matrix (Competitors) 22
2.4. EFAS: External Factor Analysis Summary 22
3. Internal Environment Analysis 23
IM: Industry Matrix (Competitors)
3.1. Financial Statement 2020/ 2021 23
3.2. VRIO: (Value, Rareness, Imitability, Organization) Matrix 23
3.3. IFAS: Internal Factor Analysis Summary 25
4. Strategic Factors Analysis 26
4.1. SFAS: Strategic Factor Analysis Summary 26
4.2. TOWS Analysis 27
4.3. Suggested Strategies and Strategic Objectives 28
4.3.1. Establishing new specialized medical centers (Product Development 28
Strategy)
4.3.2. New Medical Tourism Entity (Joint Venture Strategy) 28
5. Strategic Alternatives and recommended Strategy 29
5.1. QSPM (Quantitative Strategic Planning Matrix) 29
5.2. Recommended Strategic Objectives: 30
6. Implementation and Control 31
6.1. Strategic Map 31
6.2. Balanced Scorecard and Implementation Plan 31
7. Establishing new specialized medical centers 32
7.1. Organizational Structure 34
7.2. Marketing Plan 35

2
 7.2.1. STP 35
7.2.2. Marketing Mix 37
8. New Medical Tourism Entity 40
8.1. Organizational Structure 41
8.2. Marketing Plan 41
9. Human Resource Policies and Programs 42
References 43

3
Introduction

Egyptian Ministry of Health was established in January 1936 at the time of King Ahmed
Fouad I, and it was consisting of:
• General hospitals sector
• Rural health centers
• Fever hospitals sector

Ministry tasks

• Drawing health policy in accordance with Egyptian state policy.

• Planning health services and family planning according to the development plans.
• Work to record health data and conduct statistical and economic studies, provided
that this data is analyzed, and information is extracted for planning and follow-up.
• Providing central health services, including central laboratories for medicine and
registration, training workers.
• Quality control of the medicine.
• Effective management during health crises.
• Department of health services and centers.
• Coordination between health activities at the local level in all governorates and their
development.

Ministry activities

• Training and research activities.

• Preventive affairs activities and endemic diseases.
• Treatment care activities.

International cooperation

The Ministry of Health, through the Technical Support Office, supervises and cooperates in
health activities and programs. It also monitors program performance, cooperates with
donors, and takes all necessary measures to supervise and follow up.

The Ministry of Health is following up on many projects being implemented with

international organizations (WHO, World Bank, USAID, EU, UNICEF, …) that cover most
health fields.

First Health Minister in Egypt was Mohamed Shahen Basha in April 1936.
47 other ministers took the responsibility, last of them is Dr. Hala Zayed since June 14th,
2018.

4
 1. Mission / Vision

1.1 Mission:

The Ministry of health in Egypt aims to enhance the health care services, the awareness of
people, and health care workers knowledge and lifestyle, and deliver it all at the most ease.

1.2 Vision

Our vision is to keep people healthy via the excellent health care services

5
 2. External Environment Analysis
2.1 Remote/ Societal/ External Environment (PESTEL)
2.2.1 Political Factors:

I. Stability of Government :

The impact on corporation: HIGH and the Probability of occurrence: High

Because Stability of Government has a high impact on providing the best sustaining services
and enables us to design a long-term strategy.

We should consider it in our strategic decision as "First Priority"

Impact on corporation

Probability of
High Medium Low

occurrence
Stability Of
Government High 1 2 5
Medium 3 4 7
Low 6 8 9

II. Relationship between nearby country :

The impact on corporation: MEDIUM and the Probability of occurrence: HIGH.

The relationship with nearby countries will affect in 2 ways:

• We can receive big number of foreign patients to have a medical tourism.
• The other one, some physicians could travel to work abroad, some for long time,
others as a low come business contracts.

We should consider it in our strategic decision as "First Priority"

Impact on corporation
Probability of
occurrence

Relationship between High Medium Low

nearby country High 1 2 5
Medium 3 4 7
Low 6 8 9

6
 2.1.2. Economic factors:

I. Inflation Rate:

The impact on corporation: High, and the Probability of occurrence: High

Current economic situation becoming stable according to last financial results. The
inflation rate will affect the purchasing power of medical equipment and medicine, and
also the services pricing strategy.

We should consider it in our strategic decision as "First Priority"

Impact on corporation

Probability of
High Medium Low

occurrence
Inflation Rate
High 1 2 5
Medium 3 4 7
Low 6 8 9

II. Increase Economic Growth:

The impact on corporation: High, and the Probability of occurrence: High

The stability of economical reports and the high rank for Egyptian credit classifications.
The increase of economic growth also will increase the MOH budget from the financial
statement.

We should consider it in our strategic decision as "First Priority"

Impact on corporation
Probability of

Increase Economic
occurrence

High Medium Low

Growth High 1 2 5
Medium 3 4 7
Low 6 8 9

III. Increase Employment Rate:

The impact on corporation: High, and the Probability of occurrence: High

Economic situation is better, employment rate going higher, it means more health care
workers power.

We should consider it in our strategic decision as "First Priority"

7
 Impact on corporation

Probability of
Increase Employment High Medium Low

occurrence
Rate High 1 2 5
Medium 3 4 7
Low 6 8 9

IV. Decrease Exchange Rate:

The impact on corporation: High, and the Probability of occurrence: High

The EGP exchange rate vs. all foreign currencies is getting better.
Most of medical equipment are imported, it will give us an advantage to buy more and pay
less.

We should consider it in our strategic decision as "First Priority"

Impact on corporation

Probability of
High Medium Low

occurrence
Decrease Exchange Rate
High 1 2 5
Medium 3 4 7
Low 6 8 9

2.1.3. Social factors:

I. Culture :

The impact on corporation: HIGH, and the Probability of occurrence: HIGH

The culture of Egyptians is “you have money, go to private sector”, even other segments
will prefer to travel abroad to have an excellent medical service.

We should consider it in our strategic decision as "First Priority"

Impact on corporation
Probability of
occurrence

Culture High Medium Low

High 1 2 5
Medium 3 4 7
Low 6 8 9

8
II. Demographics:

The impact on corporation: High, and the Probability of occurrence: High

The increase in the number of population over the age of 65 and the rise in the
proportion of older people represent a marked change in the demographic patterns as
well as change in the healthcare requirements.

We should consider it in our strategic decision as "First Priority"

Impact on corporation

Probability of
occurrence
Demographics High Medium Low
High 1 2 5
Medium 3 4 7
Low 6 8 9

III. Lifestyle:

The impact on corporation: High, and the Probability of occurrence: High

The healthcare budget increases as a result of lifestyle increase.

We should consider it in our strategic decision as "First Priority"

Impact on corporation
Probability of
occurrence

Lifestyle High Medium Low

High 1 2 5
Medium 3 4 7
Low 6 8 9

2.1.4. Technological factors:

The impact on corporation: High, and the Probability of occurrence: High

Because of the continuous new technologies either it was IT technologies or medical

equipment new applications, will push to a continuous upgrading process.

We should consider it in our strategic decision as "First Priority"

9
 Impact on corporation

Probability of
occurrence
Technology High Medium Low
High 1 2 5
Medium 3 4 7
Low 6 8 9

2.1.5. Ecological factors:

The impact on corporation: High and the Probability of occurrence: High

The medical centers distribution and specialties will be affected by the ecological factors,
such as pandemics.

We should consider it in our strategic decision as "Second Priority"

Impact on corporation

Probability of
High Medium Low

occurrence
Ecological factors
High 1 2 5
Medium 3 4 7
Low 6 8 9

2.1.6. Legal factors:

I. Decrease Taxes:

The impact on corporation: High, and the Probability of occurrence: Low

We don’t expect to reduce the taxes paid.

Decreasing taxes will reduce the purchasing cost of the medical supplies, also will
increase the patients’ healthcare budget.

We should consider it in our strategic decision as "Second Priority"

Impact on corporation
Probability of
occurrence

Decrease Taxes High Medium Low

High 1 2 5
Medium 3 4 7
Low 6 8 9

10
II. Decrease Customs:

The impact on corporation: High, and the Probability of occurrence: Low

we don’t expect to reduce the customs paid.

Decreasing taxes will reduce the purchasing cost of the medical supplies.

We should consider it in our strategic decision as "Second Priority"

Impact on corporation

Probability of
occurrence
Decrease Customs High Medium Low
High 1 2 5
Medium 3 4 7
Low 6 8 9

III. Commercial Law:

The impact on corporation: Medium, and the Probability of occurrence: Medium

The government usually make changes in commercial laws.
It will affect the purchasing process.

We should consider it in our strategic decision as "Second Priority"

Impact on corporation
Probability of
occurrence

Commercial Law High Medium Low

High 1 2 5
Medium 3 4 7
Low 6 8 9

11
2.2 Industry/ Task/ External Environment (Five Forces Analysis)

2.2.1 Bargaining Power of. Suppliers

The impact on corporation: LOW and the Probability of occurrence: LOW

Due to the new purchasing system “Consolidated purchase”, there’s no bargaining

power of supplier at all.

We should consider it in our strategic decision as "Neglected"

Impact on corporation

Probability of
Bargaining Power of High Medium Low

occurrence
Suppliers High 1 2 5
Medium 3 4 7
Low 6 8 9

2.2.2 Bargaining power of Buyers

The impact on corporation: LOW and the Probability of occurrence: LOW

Due to our services are provided for the whole population with different segments with
different needs

We should consider it in our strategic decision as "Neglected"

Impact on corporation
Probability of

Bargaining Power of
occurrence

High Medium Low

Buyers High 1 2 5
Medium 3 4 7
Low 6 8 9

2.2.3 Substitute product

The impact on corporation: Low and the Probability of occurrence: Low

There’s no substitute for the healthcare services.

We should consider it in our strategic decision as "Neglected"

12
 Impact on corporation

Probability of
occurrence
Substitute Product High Medium Low
High 1 2 5
Medium 3 4 7
Low 6 8 9

2.2.4 Entry barrier

The impact on corporation: High and the Probability of occurrence High

Due to the great amount of capital and financial and human resources to provide such
services.

We should consider it in our strategic decision as "First Priority "

Impact on corporation

Probability of
occurrence
Entry Barrier High Medium Low
High 1 2 5
Medium 3 4 7
Low 6 8 9

2.2.5 Rivals

V. Strategic Map

Service Quality
2.5
2
5
2
3
4
1.5

1
1

0.5

0
0 1 2 3 4 5 6 7

13
 1. MOH hospitals
Includes general and central hospitals, Health care centers, Rural medical centers,
Treatment organizations, and Health insurance hospitals.

2. University hospitals
Includes general and specialized medical hospitals under the management of High
Education Ministry.

3. Armed forces/ Police hospitals

All hospitals of Army forces (Maadi, El Galaa, Airforces, IMC, Mostafa Kamel….) and
Ministry of Interior ( Agouza and Nasr City).

4. Private sector class II

Includes private clinics, specialized centers, and Mid-range private hospitals

5. Private sector class I

All. First class hospitals (Dar el Fouad, Es-Salam international, Saudi German,
Cleopatra group, ……)

VI. Strategic Type

Initiator:

1. Private sector class I

Analyzers:
1. University hospitals
2. Armed forces/ Police hospitals

Defender:
1. MOH hospitals
2. Private sector class II

Analysis by Issue Priority Matrix:

1. Initiator:

Impact on corporation is Low, and the Probability of occurrence: Medium

Initiators target a totally different population segment.

We should consider it in our strategic decision as "Second Priority "

14
 Impact on corporation

Probability of
occurrence
High Medium Low
Initiator High 1 2 5
Medium 3 4 7
Low 6 8 9

2. Analyzers:

Impact on corporation is Medium, and the Probability of occurrence: Medium

Analyzers strategy has about 15% of initiators’ strategies, so the remaining 85% will
compete us.

We should consider it in our strategic decision as "First Priority "

Impact on corporation

Probability of
occurrence
High Medium Low
Analyzers High 1 2 5
Medium 3 4 7
Low 6 8 9

3. Defender:

Impact on corporation: High, and the Probability of occurrence: High

Defenders are the direct competitors.

We should consider it in our strategic decision as "First Priority "

Impact on corporation
Probability of
occurrence

High Medium Low

Defender
High 1 2 5
Medium 3 4 7
Low 6 8 9

15
VII. Four Corner Analysis

Current Strategy
Drivers Cost leadership
Accessibility, low cost services. providing the healthcare services to the.
maximum number of population with
the minimum cost.
Services quality is not a periority.
Competator Future
Strategy
(Defender) Cababilities
Huge distribution network, it exists
everywhere.
Managment Assumption
Big human resources.
Defender, will not change in near future.
Strengh is in geographical distribution.

Current Strategy
Differentiation
Drivers
partially, serving high segment patients
Best performance price ratio
to secure good budgeting.
Some advanced services are available.

Competator Future
Strategy
(Analyzer)

Cababilities
Managment Assumption
Better customer service.
Managment is initiator, but whole
Better service quality.
corporations are Analyzer.

16
 Drivers
Current Strategy
The goal is providing better services, no
Focus strategy.
matter the cost.
Luxurious Services.
Market leadership

Competator Future
Strategy
(Initiator)

Managment Assumption Cababilities

Managment and whole corporations are Latest medical technologies.
initiator. highest service quality.
Have strong brand imagkng.

17
 VIII. Value Discipline Triad

Product Leadership
(Differentiation)

1. University
hospitals
2. Armed
forces/
Police
hospitals

sect e
Low rivat
1. hospit

class r
o
I
2.

M O al s

• P
Priv r

H
s ect II
clas

at e
o
s

OperationalExcellence Customer Intimacy

(Cost) (Focus)

18
 2.3. Portfolio Analysis

2.3.1. Industry Attractiveness Matrix

• Step(1): Identify Industry Attractiveness(Based on PESTEL & Five forces)

• Step(2): Identify Competitiveness Strength

19
• Step(3): Plot the Business Units on the Matrix

Competitiveness

High Medium Low

5 5 3.34 1.67 0
High

1 2 5

🔴
3.34
Attractiveness

Medium

3 4 7
1.67
Low

6 8 9
0

• Step(4): Identify Future Direction of the Business unit

SBU1

Attractiveness ↑

Competitiveness ↑

20
 Competitiveness

High Medium Low

5 3.34 1.67 0

5
High

1 2 5

🔴
3.34
Attractiveness

Medium

3 4 7
1.67
Low

6 8 9
0

• Step(5): Prioritize Our Investment (based on future decision):

Analysis by Issue Priority Matrix:

Impact on Corporation: High and Probability of occurrence: High

We should consider it in our strategic decision as:

High priority (Invest& Grow).

Impact on Corporation
Probability of
occurrence

High Medium Low

Business Unit
High 1 2 5
Medium 3 4 7
Low 6 8 9

21
 2.3.2. IM: Industry Matrix (Competitors)

2.4. EFAS: External Factor Analysis Summary

(based on PESTEL & five forces for my org)

22
 3. Internal Environment Analysis
3.1. Financial Statement 2020/ 2021
For the financial year 2020/2021, the Egyptian government is heading to increase the
financial. allocations of the main vital programs which interesting in developing the human
life, such as health, education and developing programs.

The following are the share of the MOH from the financial statement 2020/ 2021:

• The overall health allocations increased from 73.1 billion EGP in financial statement
of 2019/ 2020 to be 93.6 billion EGP in 2020/ 2021 financial statement.
• Healthcare allocations for the general health insurance project, treatment at state
expense, and fighting Corona virus, allocations was increased to 10.6 billion EGP.
• The healthcare workers allowances were increased by 75% more than last year
budget to reach 5.25 billion EGP.
• Funding some MOH initiations to the healthcare workers’ incentives by 500 million
EGP.
• Social support of the new health insurance program by 4.2. billion EGP includes 865
million EGP for the retirement segment and 3.33 billion for the general authority of
healthcare.
• Presidential initiation for women healthcare budget 135.2 million EGP.
• Presidential initiation to support healthcare providers 100 million EGP.
• Presidential initiation for thriftiness serum and vaccines 2 Billion EGP.
• Psychological health initiation 14.2 million EGP.
• Students healthcare budget 356 million EGP.
• Breadwinner women healthcare support of 133 million EGP.
• Children health insurance of 214 million EGP.
• Farmers health insurance of 100 million EGP.

3.2. VRIO: (Value, Rareness, Imitability, Organization) Matrix

The MOH has the strongest hierarchy among all healthcare organizations in Egypt. With
maximum no. of workers and the biggest number of medical entities, MOH has the biggest
market share in the healthcare sector in Egypt.

The MOH has the best coverage in all Egypt, it reaches the very deep rural areas to provide
its services.

With a huge budget, the government pay the most priority to the healthcare sector and its
services.

23
 With this governmental support, MOH ables to fix a very competitive pricing strategy for its
services, some of them got the service for free after a social case studies, it’s considered the
greatest CSR in Egypt.

One more advantage, is the minimal of the employee’s turnover, it enables the work policy
to stay stable for a long term.

The branding of the MOH is not the best, actually it’s always described as a low-quality
service and the service time bounded is the longest.

The share of the MOH staff in the medical research is always less than its similar in the
university and specialized medical centers, beside the lack of patients database of patients
due to the poor IT system used in hospitals and centers.

The segmentation of the provided services always goes for low- and medium-income
populations, it limits the budgeting resources of the ministry, beside the limited technology
used.

A new serious issue with the healthcare workers recently appeared after the complain of
workers about their salaries, incentives and allowances. Beside the bad public image of
physicians in front of the publics.

Private Sector – Class II

MOH Value
Resource / Capability (Direct competitor)
Creation
V R I O V R I O
Purchasing 🛑 ✅ 🛑 ✅ 🛑 ✅ 🛑 🛑
Branding 🛑 ✅ 🛑 🛑 🛑 🛑 🛑 🛑
CSR ✅ 🛑 ✅ ✅ 🛑 🛑 🛑 🛑
Research 🛑 🛑 🛑 🛑 🛑 🛑 🛑 🛑
STP 🛑 ✅ ✅ ✅ 🛑 ✅ ✅ 🛑
Coverage ✅ ✅ ✅ ✅ ✅ ✅ 🛑 🛑
Quality 🛑 🛑 🛑 🛑 🛑 🛑 🛑 🛑
Pricing ✅ ✅ ✅ ✅ ✅ ✅ ✅ 🛑
Organization structure ✅ 🛑 ✅ ✅ 🛑 ✅ 🛑 🛑
Employees turnover ✅ 🛑 🛑 ✅ 🛑 🛑 🛑 🛑
Employees equity 🛑 ✅ 🛑 🛑 🛑 ✅ 🛑 ✅
Finance ✅ ✅ ✅ ✅ 🛑 ✅ 🛑 🛑
IT 🛑 ✅ 🛑 🛑 🛑 🛑 🛑 🛑

24
 Initiators Analyzers MOH
Resource / Capability Value
V R I O V R I O
Creation
Purchasing ✅ 🛑 ✅ ✅ 🛑 ✅ ✅ ✅
Branding ✅ ✅ ✅ ✅ 🛑 ✅ ✅ ✅ Weakness
CSR 🛑 ✅ ✅ ✅ ✅ ✅ ✅ ✅
Research 🛑 ✅ 🛑 🛑 ✅ ✅ ✅ ✅ Weakness
STP ✅ ✅ ✅ ✅ 🛑 ✅ ✅ ✅ Weakness
Coverage 🛑 🛑 🛑 🛑 🛑 ✅ ✅ ✅ Weakness
Quality ✅ ✅ ✅ ✅ 🛑 ✅ ✅ ✅ Weakness
Pricing 🛑 🛑 🛑 🛑 ✅ ✅ ✅ ✅ Weakness
Organization structure ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅ Weakness
Employees turnover ✅ ✅ ✅ ✅ 🛑 ✅ ✅ ✅ Weakness
Employees equity ✅ ✅ ✅ ✅ 🛑 ✅ ✅ ✅ Weakness
Finance ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅ Weakness
IT ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅ Weakness

3.3. IFAS: Internal Factor Analysis Summary

(Based on internal factors)

25
4. Strategic Factors Analysis:
4.1 SFAS: Strategic Factor Analysis Summary

26
 4.2 TOWS Analysis:

S W
S1: W1:
Purchasing Branding
S2: W2:
Internal Coverage Quality
S3: W3:
Factor Pricing STP
External S4: W4:
Organization structure IT
Factor S5: W5:
Finance Employees equity
O
O1: Relationship between nearby
country Strategies to make the
Strategies to make the use
O2: Technology use of "opportunities"
of "opportunities" to
through our
minimize
"Strenghts"
O3: Demographics "Weaknesses"

T
T1:
Ecological factors (Panademics)
T2: Strategies to minimize the
Culture potential danger lying in
Strategies
T3: sectors where our "
to prevent "Threads" through
Lifestyle Weaknesses " meet
our "Strenghts"
T4: "Threads "
Initiator
T5:
Analyzers

• Product Development Strategy

Using the opportunities of O2 and O3, and strengths of S1, S4 and S5, the
weaknesses that may affect is W3, and Threats of T2, T3 and T5 may occurs.

• Join Venture Strategy

Using the opportunities of O1 and O2, and strengths of S1 and S5, the weaknesses
that may affect is W3, and Threats of T3 may occurs.

27
4.3 Suggested Strategies and Strategic Objectives

4.3.1 Establishing new specialized medical centers (Product Development

Strategy)

Using the opportunities of new technologies, and demographics. And make use of
the internal strengths of strong organization structure, high purchasing power,
good finance, a new specialized medical center can be opened to provide a
differentiating service to the existing and new segments of patients.

o Due to recent and past pandemics like COVID-19, SARS, H5N1 to H7N9,
H1N1 to H2N3, etc., an urgent need to open a specialized pandemic center
to use in emergencies.
This is to Decrease Mortality rate due to uncommon diseases among
persons between 30 and 70 years (%) by 2030.

o New high-class hospitals with premium medical and service quality is

needed to target new segments with has high lifestyle, used to go to class I
private hospitals.
This is to increase the annual MOH budgeting to cover the governmental
subsidy to increase the per capita health expenditure to 600$ by 2030.

o Specialized healthcare centers for elders to improve the medical services to

increase the life expectancy at birth from 71.1 to 75 years by 2030

4.3.2 New Medical Tourism Entity (Joint Venture Strategy)

Using the opportunities of good relationship between nearby countries in

Gulf area, and the new medical technologies that could be offered. And
make use of the internal strengths of high purchasing power and good
finance, a new entity will be established at a Joint Venture strategy
between Ministry of Health and Ministry of Tourism, to operate a full
medical tourism activity.
This is to achieve an extra income to the GDP (Health and Tourism sectors)
by 40% by 2030.

28
5. Strategic Alternatives and recommended Strategy
5.1. QSPM (Quantitative Strategic Planning Matrix)

• QSPM Analysis:

According to the QSPM, both "Product Development" and "Joint Venture" have Sum
total attractiveness Score > 3, it’s reasonably attractive and we should continue in
both strategies.

29
 5.2. Recommended Strategic Objectives:
First Priority

Establishing new specialized medical centers (Product Development Strategy)

Second Priority

New Medical Tourism Entity (Joint Venture Strategy)

As our Mission is:

“The Ministry of health in Egypt aims to enhance the health care services, the awareness of
people, and health care workers knowledge and lifestyle, and deliver it all at the most ease”.

So, our recommended strategy is aligned with our mission

30
6. Implementation and Control

6.1. Strategic Map

Kindly see file no. 2

6.2. Balanced Scorecard and Implementation Plan

Kindly see file no. 3

31
 7. Establishing new specialized medical centers
(Product Development Strategy)

Using the opportunities of new technologies, and demographics. And make use of the
internal strengths of strong organization structure, high purchasing power, good finance, a
new specialized medical center can be opened to provide a differentiating service to the
existing and new segments of patients.

The strategy stands for developing new services to the medical market, totally new
specialized medical center serves the patients in different specialties, each to overcome a
major problem happened recently.

All centers will be connected with DICOM and internal IT system.

A complete database for all patients will be developed with a unique ID for each patient, to
able to follow up anytime with this ID.

A 24/7 call center will be available to make reservations, ask questions, enquire about
clinical results, and to order equipped emergency ambulances for home visits.

Below, we’ll list the required established center, the purpose of it, the targeted segment,
and how will we operate...

Pandemics Isolation Hospitals

We need to learn from history, and in order to overcome any coming pandemics, and to
decrease Mortality rate due to uncommon diseases among persons between 30 and 70
years permeant isolation hospitals must be available.

A mega isolation hospital of a power of 1200 bed will be established in each governate,
except in Cairo, 3 hospital will be founded, only 1 hospital in Sinai, patients from New Valley
governate will join the hospital of Qena.

A big tender will be organized to equip the hospital in 3 stages, to reach 30% of the hospitals
power by 2022, 70% by 2026 and 100% by 2030.

A central research center will be founded to develop required researches to get vaccines.

Awareness campaigns will start to spread information and knowledge to the Egyptians in
order to raise the awareness level to the highest.

32
Specialized Healthcare Centers

To pay more attention to the patients, and to increase the life expectancy at birth from 71.1
to 75 years we’ll establish new specialized medical centers.

Liver diseases center, Kidney diseases center, Heart diseases center, Gastro diseases center,
Orthopedics center, and Aging Diseases center.

A big tender will be organized to equip the hospital in 3 stages, to reach 30% of the hospitals
power by 2022, 70% by 2026 and 100% by 2030.

Each medical center will have a specialized research team, work for their specialty.

Class I Hospitals

In order to increase the budgeting of the medical sector, and also to compete the class I
private hospitals, we’ll open same services as presented to the highest segments of the
market.

Class I hospital with 5 stars house keeping with superior medical service.

It will base mainly in Cairo, Alexandria, New Alamein, and Hurghada.

Elders Diseases Centers

To take care of the elders, and to achieve the objective of increasing the life expectancy at
birth, a dedicated medical center for elders will be founded.

At each city, elders’ diseases center will be founded to provide services to the city habitants.

Social and medical services will be offered, to solve all problems it may occurred during this
critical age.

The network of emergency ambulances will help, beside a very well-trained staff from
healthcare workers, doctors, nurses, technicians and social services workers.

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 7.1. Organizational Structure

Divisional structure:

We choose this kind of organizational structure because the organization is managing diverse
product lines and it’s expanding to cover wider geographical areas

Advantages:
§ Decentralized decision making
§ Each department is organized around its own services
§ Facilitates rapid response to environmental changes
§ The management is responsible to the profit/loss
§ Allows efficient management of this large number of units

Hospital Hierarchy:

Pandemics
Isolation Hospitals

Specialized
Healthcare
Centers
MOH
Specialized
Healthcare
Centers

Elders Diseases
Centers

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 Hospital
Manager

Medical Quality Infection

HR Research Finance IT Marketing
Manager Control Control

7.2. Marketing Plan

7.2.1. STP

I. Segmentation

According to The Central Agency for Public Mobilization and Statistics, the Egyptian
population is divided exactly into 10 equal number tens.

The first and the highest segment’s share from the total annual family’s income is 28.3%,
and it consumes 23,9% from the total annual consumption.

The tenth and the lowest segment’s share from the total annual family’s income is 3.6%,
and it consumes 4.2% from the total annual consumption.

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II. Targeting and Generic Strategy:

Targeting Marketing Strategy

Pandemics Isolation
Hospitals Segments 1 - 10 Cost leadership

Specialized Healthcare
Cost leadership
Centers Segments 4 to 10
Differentiation
Class I Hospitals
Segments 1, 2 and 3 Differentiation
Elders Diseases Centers
Elders of segments 4 to 7 Differentiation

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 7.2.2. Marketing Mix

I. Product

The customer value:

Core Benefit Healthcare

Basic Product 8. Healthcare services
9. Serving rural areas
10. High quality services
11. Orientation
12. Pandemics readiness
Expected Product 13. Covers all governates
14. Reasonable service cost for most
services
15. High quality services for class I
centers
16. Well-equipped hospitals
Augmented Product • Full services at one place
• Well trained staff
• availability
• 24/7 call center follow up and
online reservation
Potential Product • Telemedicine

Product classification

“MOH” is offering healthcare services which are intangible services.

So, to achieve our target, we have to improve medical and social services
Well-equipped hospitals with the highest technologies is a must
We can work on improving staff performance

Service key differentiators:

Ready isolation centers available all time

Very specialized medical centers serve all patients with affordable service cost
Class I hospitals with superior medical and inpatient services
Complete database and restricted follow up policies

Product hierarchy:

1- Need family: Healthcare services.

2- Product family: “MOH” Medical services.

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3- Product classes “Geographically”: Egypt.
4- Product lines:
• Pandemics Isolation Hospitals
• Specialized Healthcare Centers
• Class I Hospitals
• Elders Diseases Centers

5- Product type:
• Pandemics Isolation Hospitals: A mega isolation hospital of a power of 1200 bed will
be established in each governate
• Specialized Healthcare Centers: 13 center distributed according to specialty and
population distribution
• Class I Hospitals: 5 hospitals
• Elders Diseases Centers: At each city, elders’ diseases center will be founded to
provide services to the city habitants.

Product Mix

• Width: 4 different product lines:

Pandemics Isolation Hospitals
Specialized Healthcare Centers
Class I Hospitals
Elders Diseases Centers

• Depth:
Pandemics Isolation Hospitals: only one type
Specialized Healthcare Centers: Two types according to service quality
Class I Hospitals: only one high quality service
Elders Diseases Centers: Two types according to service quality

• Length: Total of 6 service types.

• The consistency: is high as they all provide the same healthcare service with the
running systems and operation requirements.

II. Pricing Strategy

Pandemics Isolation Hospitals:

• Services are totally free, and it will be funded from the MOH budget.

Specialized Healthcare Centers:

Will have 2 level of pricing:
• Cost plus strategy: for low targeted segments
• Perceived value strategy for higher segments

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Class I Hospitals
• Competition relative strategy

Elders Diseases Centers

Will have 2 level of pricing:
• Cost plus strategy: for low targeted segments
• Skimming strategy for higher segments

III. Place

Pandemics Isolation Hospitals

A mega isolation hospital of a power of 1200 bed will be established in each governate

Specialized Healthcare Centers

13 specialized centers will be established in central cities:
3 in Cairo, 1 in Alexandria, Damanhour, Tanta, Mansoura, Damietta, Menia, Assuit,
Sohag, Qena, and Aswan

Class I Hospitals
1 hospitals Cairo, October, Alexandria, New Alamein, and Hurghada.

Elders Diseases Centers

At each city, elders’ diseases center will be founded to provide services to the city
habitants.

IV. Promotion

We will use advertising strategies (online and offline) to build up long term branding and
enhance the image

PR work to make health insurance contracts with companies in the fields of

communications, petroleum, multinational companies… to provide healthcare services in
class I hospitals

Media campaign for unusual diseases awareness

Medical conferences to physicians to deliver more medical knowledge

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8. New Medical Tourism Entity
(Joint Venture Strategy)

In June 2019, it was announced that Egypt is embarking on a mega- project to establish the
biggest medical tourism city in the Middle East and North Africa region with more than LE
20 billion investments.

Meanwhile, in December 2018, the Tourism and Aviation Committee of Egypt’s House of
Representatives announced the start of the medical tourism project that would bring
tourists to the country during the second half of 2019. The committee highlighted that there
are many tourist areas in Egypt that have the ability to benefit from medical tourism
including 16 inland and coastal locations, where natural treatments for many diseases are
available such as Helwan, Ain Assera, Ain Sokhna, Hurghada, Fayoum, Oasis, Aswan, Sinai
and Safaga on the Red Sea.

The committee also pointed out that Egypt has many sulfurous and mineral springs that
have unique chemical compounds. Also, the clay in these sulfurous springs can cure many
bone, digestive and respiratory diseases, while skin diseases can be treated by burying the
patient in the hot sands.

Previously, in February 2017, Egypt had launched the “Tour and Cure” medical tourism
initiative. The initiative offers treatment to the hepatitis C virus (HCV)-infected patients from
all over the world, with an effective and advanced treatment program at a lower cost. This
was followed in December 2018 by the approval
of a draft law on medical tourism to ensure coordination between the Ministry of Tourism
and the Ministry of Health in the emerging field of medical tourism.

Using the opportunities of good relationship between nearby countries in Gulf area, and the
new medical technologies that could be offered. And make use of the internal strengths of
high purchasing power and good finance, a new entity will be established at a Joint Venture
strategy between Ministry of Health and Ministry of Tourism, to operate a full medical
tourism activity.

This is to achieve an extra income to the GDP (Health and Tourism sectors) by 40% by 2030.

Cosmetic surgeries including breast augmentation and lifting, abdominal reconstruction,

liposuction, botox and fillers; renal dialysis; dental procedures; chemotherapy; and Lasik
treatments are popular among patients from not only the Gulf region, but Russia, Denmark,
Italy, Poland and the United Kingdom.

Egypt’s Oasis of Siwa was announced as a global destination for medical and environmental
tourism during the medical tourism conference held in Alexandria in 2017. The remote
Oasis, located in Egypt’s western desert, 50 km east from Libyan borders, has many springs

40
with water that is said to cure diseases such as psoriasis, rheumatism and some digestive
system diseases.

Siwa is also well known among domestic and international medical travellers for the “sun
baths”, organised from June through to August near the Dakrur Mountain. The sand of this
area is used to treat medical conditions such as rheumatism and problems in the knees, the
back and the skin.

8.1. Organizational Structure

Functional structure:
The strategy rather being led by an entrepreneur; he is replaced by as team of managers who
have functional specializations. The entrepreneur knows how to delegate his responsibilities.

Advantages
• Centralized control of operations
• Promotes in-depth functional expertise
• Enhances operating efficiency where tasks are routine

8.2. Marketing Plan

• The targeted segments are tourists from Gulf countries, GB, Germany and
Mediterranean countries.
• High quality medical and inpatient services will be providing.
• Pricing strategy will be Competition relative strategy due to hard competition from
Turkey, Tunisia, Algeria and Jordan.
• Hospitals will be founded in Sharm el Sheikh, Hurghada, Maesa Alam, New Alamein
and Siwa.
• In association with the Ministry of Tourism, embassies of Egypt, a marketing campaign
will be released with sponsors like Egypt Air, and Telecommunications companies.

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9. Human Resource Policies and Programs
Preparation and selection: Review of the employees' job description, job specification
and job performance standard to match the change of the organization.

Succession Planning: the preparation of the organization succession plan will enable the
it to stand any future challenges.

Career Path and development: the preparation of the career path for the employees
will help the stability and minimize the turnover of the employees.

Recruitment: designing a good recruitment process (Selection, interviews) with a high

level of orientation to ensure the compatibility of the new recruited employees with the
existing culture to achieve organizational objectives.

• Training and development: on-the- job training, Off-the-Job training and Provide
career planning assistance for employees.
• Incentive system will ensure the motivation of the employees to better performance
(linking incentive to production)
• Compensation Policies and protection: What employees get in exchange for their
contribution to the organization, maintain, retain productive workforce, achieve the
organizational objectives
• Testing: Will ensure the qualification of the candidates and their fit in the
organization culture.
• Enhance employee participation: in implementing our strategy, all employees from
different organizational levels must make a meaningful contribution in decision-
making. this will increase employee's involvement and enhance their working life
balance.
• Enhance employee organizational commitment: by increasing job involvement,
which results in lower levels of absenteeism and turnover.
• Implementing employee recognition programs: starting with personal attention and
ending with appreciation for a job well done.
• Develop effective staffing plans supporting the organizational strategies by allowing
to fill job openings proactively (in terms of number and the quality of the workforce
for the short and long term) VIP in case of international operations. (if the company
is multinational)

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 References
• SDS Egypt vision 2020
• Financial-Statement, Egypt 2020-2021
• Citizen Pre-Budget 2020-2021 – Ministry of Finance
• Medical tourism in North Africa – North Africa Health – 2020 Edition
• Egypt: Healthcare Sector Outlook – North Africa Health
• Central Agency for Public Mobilization and Statistics
• The Global Competitiveness Report 2019 – World Economic Forum

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