Health, since long time ago is a term that is familiar to everyone’s life. When one is ill, health care could be a priceless commodity. Globalization has made medical science and technology advancing dramatically. For middle and upper class of the society, some people have come to expect that practice of these advances could cure any serious illness they suffer from, regardless of the cost. However, individuals of the lower class usually have to rely through third party payors, such as companies, who provide health care benefit for their employees, and the government through its subsidy programs. Siloam Hospitals Group (SHG), a subsidiary of Lippo Karawaci, is a private health care provider that offers international standards of services and ambitiously planned, Lippo Karawaci (LPKR) would have built 50 hospitals by 2017 under the brand of “Siloam Hospitals” across the Indonesian archipelago. The growing demand of the ailing population is not complemented with the sufficient number of private hospitals, thus this problem has resulted in approximately 400,000 of Indonesians seeking medical treatments in the neighboring countries. This is very typical to Indonesians who do not feel that they have met their expectation for good quality health care in Indonesia, then hundreds of thousands citizens go overseas for medical care. Together with the government, Siloam Hospitals Group tries to change that phenomenon. The thesis explores the competitive advantage of Siloam Hospitals Group by analyzing external enviromental factors (PESTEL), five competitive forces of the health care industry, SWOT Analysis and also comparing competitive advantages of neighboring countries in medical tourism and sees either SHG and Indonesia is ready to compete on the broader scope of medical tourism competition or not. The data are collected by using in-depth interviews, observations, study of documents and literature reviews.
This study found that the company applies focus differentiation strategy to achieve its competitive advantage, the five competitive forces are relatively not strong or high to influence SHG. In conclusion, Siloam Hospitals Group should stay in the initial move in which it targets local consumers by reaching affluent people in the remote areas, avoiding them of going abroad. Some strategies and recommendations are generated through the breakdown of TOWS matrix. |