Question.10.
Dr.sukumar inherited his fathers Dey’s lab in Delhi in 1995. Till 2002 he owned 4 labsin
the national capital region (NCR). His ambition was to turn it into a national chain. The
number increased to 7 in the year 2003 across the country, including the acquisition of
platinum lab in Mumbai. The number is likely to go to 50 within 2-3 years from 21 at
present. Infusion of Rs 28 crores for a 25 % stake by pharma capital has its growth
strategy.
The lab with a revenue of Rs. 75 crores is among top three pathological labs in India with
atlantic (Rs. 77 crores) and pacific (Rs 55 crores). Yet its market share is only 2 % of the
Rs 3500 crore market. The top three firms command only 6 % as against 40-45 % by
their counterparts in the USA.
There are about 20,000 to 1,00,000 stand alone labs engaged in routin pathological
business in India, with no system of mandatory licencing and registration. That is why
Dr. sukumar has not gone for acquisition or joint ventures. He does not find many
existing laboratories meeting quality standards. His six labs have been accredited
nationally whereon many large hospitals have not thought of accredition. The college of
American pathologists accreditation of Dey’s lab would help it to reach clients outside
India.
In Dey’s lab biochemistry and blood testing equipments are sanitized everyday. The bar
coding and automated registration of patients do not allow any identity mix-ups. Even
routine tests are conducted with highly sophisticated systems. Technical expertise enables
them to carry out 1650 variety of tests. Same day reports are available for samples
reaching the same day by 3 p.m. and by 7 a.m. next day for samples from 500 collection
centers located across the country. Their technicians work around the clock, unlike
competitors. Home services for collection and reporting is also available
There is a huge unutilized capacity. Now it is trying to top other segements. 20 % of its
total business comes through its main laboratory which acts as a reference lab for many
leading hospitals. New mega labs are being built to encash preclinical and multi-center
clinical trials within India and provide post graduate training to the pathologists.
Q.1.what do you understand by the term vision? What is the difference between
‘vision’ and ‘mission’? what vision Dr.sukumar had at the time of inheritance of
dey’s
lab?
Has
it
been
achieved?
(2+2+2+2=8 marks)
Ans.1. In an organizational context a corporate vision refers to an inspirational picture of
the firm’s future that can be created offering clarity amidst confusion, hope against
despair, and unity of purpose amidst diversity of personal causes. A well articulated
vision creates enthusiasm for the course management has charted and engages members
of the organisation. A strategic vision outlines management’s aspirations for the business,
providing a panoramic view of “where we are going” and a convincing rational for why
this makes good business sense for the company. A strategic vision is a road map of a
company’s future- providing specifics about technology and customer focus, the
geographic and product markets to be pursed, the capabilities it plans to develop, and the
kind of company that management is trying to create.
The difference between vision and mission can be well enumerated as under:
Vision
Mission
It answers the question- where we are It answers the question-who we are and
going?
what we do?
Vision is the expression of the firms future Mission is the expression of the vision of
by its leader/founder
the organisation
It provides and direction to the organisation It is a grand design of the firms future and
its growth ambition
Provides specifics about product-customer- It
describes
organisations
current
market-technology focus
capabilities, customer focus, activities &
business makeup.
A vision statement usually describes, what Mission is what an organisation is and why
the company wishes to become in the long it exists
term future
Vision spells out the road map of It spells out the organisations reason for
company’s future
existence in the society
Dr.sukumar inherited from his father Dey’s lab in the year 1995. The lab was situated in
Delhi, conducting a variety of pathological & clinical tests.
Vision is the expression of the firm’s founder/leader and provides the road map and
direction to the organisation. Thus when Dr.sukumar inherited the lab from his father he
had formulated a vision for his firm. At the time of inheritance Dr.sukumar had the
ambition of turning a one lab firm into a chain of pathological labs covering the length
and breath of the country. And thereby describing what the organisation wanted to
become in the long term future.
Dr.sukumar made huge progress by opening 21 labs from only one lab that he inherited
from his father and has a growth program in the pipeline. His chain of laboratories
features in the top three laboratories of the country, with 6 labs accredited and are
equipped with state of the art technology. With all this on the table, Dr.sukumar has come
near and is moving in the right direction to crystallize his vision. However at the same
time the market share is low when compared with the external benchmark from the U.S.
market.
Q.2. For growth what business strategy has been adopted by Dr.sukumar?
(2 marks)
Ans.2. Dr.sukumar has largely gone for an organic mode of expansion where he has tried
to avoid acquisitions and mergers as much as possible. The internal growth strategy
pursued by Dey’s lab can be termed as intensification.
Under intensification they have tried to achieve:Market penetration- it is the process whereby Dey’s lab attempts that more customers
from the same geographical area buy their services. They are trying to gain higher market
share in the given region where they currently exist.
Market development- it is the process whereby Dey’s lab attempts to expand
geographically in the country by reaching higher number of towns and cities for its
services.
Product development- It is a process whereby Dey’s has tried to cater augmented product
by providing state of the art technology, 1650 tests, fast service and accredited labs.
To fund its growth Dr.sukumar has raised funds through doing a stake sale to pharma
capital.
Q.3. what is the marketing strategy of Dr.sukumar to overtake its competitors?
(6 marks)
Ans.3. Marketing is typically seen as a task of creating, promoting, and delivering goods
and services to consumers and businesses. Thus marketing strategy can be understood as
the plan that synchronizes all the efforts that help to identify the need of the customers,
build product which satisfies their needs, deliver the right kind of goods at the right place
and provide service in order to satisfy the customers and or the target market. The
organisation can resort to many different marketing strategies based on the assumptions
and aspirations of the organisation as well as the customer requirement and
environmental factors.
Dr.sukumar adopted a mix of marketing strategies Services marketing – Dey’s lab adopted the concept of marketing to services by
providing quick service, home service for collecting samples and reporting. It increased
convenience to its customers by providing 500 centers of collection and reliable service
by means of doing bar coding and automated registration of patients.
 Augmented marketing- it refers to the attempt that Dey’s lab made in order to provide
huge number of tests, coding of patients, using highly sophisticated instruments, quick
availability of reports, maintaining high amount of hygiene and making reports available
in minimum time. They are not only satisfying customers but delivering beyond their
expectations.
Thus keeping strategies in mind the following marketing mix was created –
 Product- their product constituted of 1650 variety of tests conducted under expert
guidance. The thrust in product was on quality. The laboratories used the most modern
methods for conducting the tests. Even the common routine tests were conducted with
highly sophisticated procedures. The bar-coding and automated registration of patients
was also used to make sure that no mix up takes place. High quality was maintained as all
the equipments were sanitized and validated every day.
 Place- There is 500 collection centers for the laboratory, thereby providing it with a
broader reach. The system of collection of samples from home also provided convenience
to the patients. Reports are made available in a very short time as the lab technicians
work round the clock thereby adding to convenience of the customers.
The right kind of marketing strategy with the right kind of marketing mix has provided
Dr.sukumar’s organisation with an edge over its competitors which is very visible by the
rank that his organisation has climbed up to in a short period of time.
Q.4. in your opinion what could be the biggest weakness in Dr.sukumar’s business
strategy?
Ans.4. A weakness is an inherent limitation that creates a strategic disadvantage. The
thrust on quality has allowed Dey’s lab to achive success, but it is also constrained by
some internal limitations. They were It was not able to capitalize opportunities by not accepting acquisitions and mergers
as a way to grow.

It has huge unutilized capacity, which was of no use in current situation adding to
costs and not revenues.

High dependence on the main lab, which contributes to 20% of sales of the
organisation. So any dip in sales of main lab effects the organisation in a big way.

They are unable to mass market their service as it is evident from its market share.

Excessive thrust on quality is their biggest strength which at times turns to be a
weakness as it does not allows them to enter into any merger or acquisition.
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