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Kindred Home Care Choosing Growth Options Case Solution

Solution Id Length Case Author Case Publisher
2235 1615 Words (11 Pages) David Barrett, Ramasastry Chandrasekhar Ivey Publishing : 9B19D024
This solution includes: A Word File A Word File

The definition of success for Kindred Home care is the achievement of the annual revenue of $50 million by 2022, from $13 million in 2017 (Chandrashekar 2019). This can also be stated in terms of achieving progressive growth in the business of the business. Three critical issues and opportunities are ide notified that can be helpful in achieving the ambitious growth targets. Firstly, the need to increase its presence in other areas of the region, in order to avoid saturation in the market of a province. Secondly, the ageing population of the region also presents a great opportunity, and this shows the prospect of a wider customer base in the future. Thirdly, offering healthcare can diversify its service offering, providing an opportunity to further its prospects in the industry. 

Following questions are answered in this case study solution

  1. Definition of Success & Critical Issue

  2. Analysis

  3. Decision Criteria

  4. Exhibit

Case Analysis for Kindred Home Care Choosing Growth Options Case Solution

2. Analysis

Although the revenue of the business is increasing in the recent time period, it is important to note that costs are also increasing (Exhibit 1). The above-highlighted issues and opportunities can be taken as a way for the organization to progress in the industry as a more notable player. Addressing the above issues and utilizing the opportunity can help the organization in increasing its profitability, and increase its market share (Himmelstein 2020). This is also closely related to the prominent prospect in the external and internal environment in the industry. Kindred Home Care is offering patient-centered care to its customers, as elderly people are likely to experience health-related issues (Exhibit 2). Despite not providing healthcare services, the current service offerings are delivered in order to ensure that customers’ needs are taken care of in a suitable manner. The home care industry is quite fragmented in nature, with a limited number of organized players in the industry. The SWOT analysis of the home care industry reveals important aspects of the industry (See Exhibit 3). Kindred home care enjoys a good reputation in the Canadian province, and it has recently invested a lot in digital tools, in order to make its business operations more effective (Gürel and Tat 2017). However, the highly fragmented nature of the industry does not allow it to achieve its optimal growth potential. The highly fragmented nature of the industry allows smaller players to take advantage of the market opportunities in the home care industry, considering the ageing population of the region. Porter's five forces model throws more light on the internal dynamics of the home care industry. It reveals that buyers enjoy considerable buying power, and it was important to provide holistic service offering to them, so that their satisfaction is maximized (Wee 2017). However, the external environment shows that there is a tremendous potential for the industry to grow (See Exhibit 4). 

It can be concluded that there is a need for Kindred Home care to consolidate its position, and increase its market share and presence in the overall Canadian Home Care industry. It can use the franchising model to expand its market presence. This will be a relatively less costly decision, in comparison to acquiring home care service providers in different parts of Canada. It has already invested a lot in its technological infrastructure, and it can replicate its business model in other areas as well. In order to provide holistic home and health care services, it can also offer healthcare in few areas, so as to provide diverse options to its customers, and increase the overall revenue per customer.

3. Decision Criteria

The above-highlighted issues and opportunities are in connivance with the ‘SMART’ goals that are important to set, in order to make sure that the issues highlighted can be successfully met in the best interests of the organization (Bjerke and Renger 2017) (See Exhibit 5). The ageing population was a great opportunity for the organization, and it showed that the organization can take great advantage of the market opportunities available in the industry. A successful outcome will indicate a more prominent market presence, and a highly enhanced revenue base that can help achieve the original goals set by the organization (Himmelstein 2020). However, there can be constraints, in case healthcare services are also provided by the company, as costs might escalate in that scenario.

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