Healthcare tourism Dubai versus London - Research Paper Example

Competitive Profile Matrix (CPM) London Health Tourism Dubai Health Tourism Weight Rating Score Rating Score Consumer perceptions on quality- Marketing 0.20 4 0.80 2 0.40 Consumer Experience 0.15 3 0.45 2 0.30 Legal and Regulatory Environment (Including Access/Visa Restrictions) 0.10 1 0.10 4 0.40 Collaboration and Cooperation Across Industries 0.05 3 0.15 2 0.10 Core Medical Strengths (Including Skilled Health Care Labour) 0.20 3 0.60 2 0.40 Positive Relationship with Community 0.05 2 0.10 1 0.05 Cost per Employee 0.03 1 0.03 4 0.12 Attractive Packages & Price competitiveness 0.14 2 0.28 4 0.56 Complementary Leisure & Travel Options 0.03 1 0.03 4 0.12 Employee Satisfaction 0.05 3 0.15 2 0.10 Total 1 2.69 2.55 Ref: (Hanefeld et al 2013); DHA (2015); MTA(2015); Johnson & Garman AN (2010) Integration Strategies The analysis of Dubai Health Tourism Industry suggests a vertical integration strategy involving both forward and backward integration. The following diagram maps the integration strategy of Dubai’s medical tourism industry. Ref: DHA (2015); MTA(2015) Intensive Strategies Market Penetration Market experts have predicted a massive projection in the market share of Dubai in the global medical tourism market. It has been reported that in 2010, the total value of the medical tourism industry was to shoot up seven percent in comparison with 2009 (RNCOS, 2010). It was expected that the total value of the market by the end of 2010 would be Dh 6.1 Billion(RNCOS, 2010). Further, in 2014, the government approved the Dubai Medical Tourism Strategy (DHA, 2015). This suggests the dedicated aggressive marketing done by the industry to have increased presence in the market. It is interesting to note that in the initial years of establishment of the concept of medical tourism, UAE was considered more as a consumer than a service provider. The paradigm shift in the scenario suggests market penetration as an intensive strategy (Goodrich & Goodrich ,1987). “The healthcare services market in the GCC is expected to grow from AED 66 billion (US $18 billion) in 2008 to AED 175-202 billion (US $47-55 billion) by 2020” (DHA, 2015). Market Development It has been reported that in 2010, Dubai Health Authority entered into a Memorandum of Understanding with Medical Tourism partners across the globe to fortify Dubai’s presence as major medical tourism destination. Dubai hosted the Medical Tourism Congress in 2011(RNCOS, 2010). These steps could be analyzed as market development intensive strategies of the Dubai medical tourism industry. There has been substantial improvement in healthcare infrastructure and technology and focused changes in the policies and regulations so as to comply with the market development strategies. Dubai has an investment friendly environment. It has established Health Care Free Zones (Tax free trade zones) and Health Cities. It has established a medical tourism club to integrate the stakeholders (DHA, 2015). Product Development In November 2012, the UAE government formulated strategy document for 2011 to 2013 focusing on the establishment of a comprehensive medical system compatible with the global standards (RNCOS, 2010). The policy insisted on development of products and services enabling Dubai’s position to improve as a major destination. It has been reported that by the year 2050, GCC will have a market demand of 140334 physicians, 227079 nurses and 138965. The government is attracting investment to r this extra product strength of 25000 beds (DHA, 2015). SWOT Matrix SO Capital Generation The market can easily identify investors to have massive investments in the industry Identity Advertise the identity of Dubai as an established tourist destination Policy The pro investment and pro industry policies of the government to attract more investments and developments Location Dubai enjoys a strategic location between Europe and South East Asia. Marketing strategies to tap this opportunity WO Human Resource Industry should focus on attracting talented human resource from outside the country by offering high incentives Healthcare Standards Strategies to bring in certifications and standardizations according to global standards Domestic Market GCC is traditionally a source of medical tourists. The large number of people going out for treatment has to be tapped by the industry ST Strategies to integrate other attractive leisure packages (Medical Tourism Club) Intensive campaign as cheapest healthcare option Legal and Regulatory Environment Strategies to liberalize travel legalities and improve access to the destination WT Overall consumer Experience: Establish cooperation with other internal industry bodies so to check any adverse consumer experience Employee Retention Improve employee satisfaction to improve retention and commitment Links with community Strategies to integrate the general public into the industry so that the industry is more integrated and there is no cultural and social resistance from the locals. Ref: (Hanefeld et al 2013); DHA (2015); MTA(2015); Johnson & Garman AN (2010) BCG Matrix Private Sector Investment (Increased 12% between 2010 and 2011) Products specific to Russia + Baltic + CIS(including Marketing) (0.5 Million Guests in 2011) Accredited Hospitals Health Care Free Zones (Tax free trade zones) Public Sector Hospital Investment Products specific to Western Europe & Scandinavia (1.8 Million Guests in 2011) (including Marketing) Products specific to South Asia + Iran + GCC (including Marketing) (4 Million hotel guests in 2011) Products specific to North & East Africa(including Marketing) Ref: DHA (2015) Five Forces Bargaining power of customers (buyers) It has been estimated that a revenue of 1.6 billion dollars have been generated through medical tourism in Dubai in the year 2012 (MTM, 2013). This suggests the purchasing power of the customers. Moreover, being a relatively new player, the challenge of being high on the choice list of the buyers is huge. Taking into account the fact that the major buyer supply is from South Asia and the buyers have several options within South Asia, this challenge becomes more intense. Bargaining power of suppliers Dubai medical tourism industry is focusing on Russia, CIS Countries, GCC countries, India, Pakistan, Nigeria, Angola and United Kingdom as key suppliers. Here the bargaining power of the suppliers would depend on three key factors 1) the quality of health care 2) Cost of healthcare and 3) the general safety, well being and satisfaction of the customers. Interestingly, Dubai industry has this challenge of attracting the domestic customer base as it has to establish itself as a healthcare system of global standard. Intensity of competitive rivalry Thailand, India & Singapore controls more than 80% of the Asian market share. Dubai is relatively a new player in the medical tourism industry (MTA, 2015). It is expected that the number of medical tourists in Singapore will cross one million by 2015 (IMTJ, 2015). Malaysia and Korea are also strong players. A major challenge for Dubai’s medical tourism industry would be the capacity of India and Singapore to offer low cost medical services. Other developing countries are also strengthening their market Threat of new entrants In the case of Dubai healthcare industry, as it is a new entrant in the global scene, the first challenge is establishing itself as a new entrant. However, it’s worth noting here that a lot of new and small players from the developing world is entering the market. Threat of substitute products or services Medical Tourism package in Dubai is unique in its own way as it has a well established tourism market. There are not many destinations which match with the kind of tourist attractions that Dubai can offer. Thus the threat of substitute products or services has to be dealt in terms of the quality and standard of medical services offered. Competitor Analysis: London It has been reported that in the year 2010, around 52,000 patients from abroad took treatment in London. However, it also worth noting here that 63,000 patients from UK travelled abroad to get treated. Thus for Dubai, along with being a competitor, London also offers the potential of being a good consumer base. The major sources for medical tourists for UK are Spain, Greece, Cyprus and the Middle East (Hanefeld et al 2013). Middle East being a major source for London’s medical tourism is a threat to Dubai’s medical tourism industry. A major positive element for London’s industry is the high consumer perception of the medical standards. Medical industry is a well established mechanism in the UK, which largely influences consumer decision (Johnson & Garman, 2010). The areas that the UK industry is focusing on are Fertility tourism, Cosmetic Tourism and Bariatric surgery (Hanefeld et al 2013). Dubai industry is able to offer a wider range of products including Orthopedics and Sports Medicine, Plastic surgery, Ophthalmology, Dental Procedures, Dermatology and Skin car, Aesthetic Practices and surgeries, Preventive Health check-ups and Wellness (DHA, 2015). The legal and regulatory mechanisms in London are much more stringent than Dubai. The travel regulations and the hospital waiting time are good examples of this. London enjoys a smoother collaboration and cooperation across industries which offer a better holistic experience for the customer. The cost of skilled human resource is a major challenge for London. In general, Dubai is able to offer relatively attractive packages to its customers in comparison with London as far as the cost and diversity of products are concerned. Recommendations Dubai has a well established tourism industry. So the decision of a buyer on choosing Dubai as a health care destination would depend on the standardization of its medical facilities. A major factor that Dubai Health Care Authority has to focus on is getting its hospitals accredited into global standards. It is promising to note that this process is already happening and many hospitals have been accredited according to international standards. Dubai medical tourism industry cannot afford to lose out in its domestic customers. This should read together with the fact that GCC is a major source of health tourists. Thus there has to be focused attention to attract more domestic medical tourists. There has to be policy interventions to have integration and cooperation between various industries which are stakeholders in the industry. DHA has identified 11 agencies as stakeholders. However, there has to a more holistic approach by undertaking a broader stakeholder analysis. This is important for a customer to have a better overall experience. Dubai has created an investment friendly environment for investors in health tourism. This strategy has to be strengthened. The scope of Dubai to be central hub taking into consideration its location advantage has to be included as an important marketing agenda. References RNCOS (2010), Medical Tourism Trends, RCNOS Industry Research Solutions, retrieved on April 02, 2015, from www.rncos.com Goodrich, G. & Goodrich J., (1987) Health care tourism – an exploratory study. Tourism Management. September. P217-222 MTM (2013) Turkey welcoming Europe’s elderly as health tourism rises. June 17, 2013. Medical Tourism Magazine., Retrieved on April 02, 2015, from IMTJ (2014), Singapore: Singapore medical tourism is recovering International Medical Travel Journal, Retrieved on April 02, 2015, from MTA (2015) Research/Surveys/Statistics, Medical Tourism association, Retrieved on April 02, 2015, from Hanefeld J, Horsfall D, Lunt N, Smith R (2013) Medical Tourism: A Cost or Benefit to the NHS? PLoS ONE 8(10): e70406. doi:10.1371/journal.pone.0070406 DHA (2015) Dubai Medical Tourism Program, Dubai Health Authority, Retrieved on April 02, 2015, from < https://www.dha.gov.ae/EN/SectorsDirectorates/Directorates/HealthRegulation/Medical-Tourism-Office/Pages/default.aspx> Johnson TJ, Garman AN (2010) Impact of medical travel on imports and exports of medical services. Health Policy 98: 171–177. doi: 10.1016/j.healthpol.2010.06.006 Read More