case study of KPJ Healthcare

assalamualaikum to everyone...

up till now, i had learned a lot of strategies and case study that related to strategy. there are 3 case study that i already discuss during tutorial class which are Gloria Jeans Coffee, KPJ Healthcare, and also UMW Holding.

in this blog, i will just dicsuss one of them which is KPJ Healthcare. we are been ordered to discuss the question related to this case study and the question is "What were the strategies implemented by KPJ Healthcare prior to 2009?". This is my answer to the question.

There are many strategies implemented by KPJ Healthcare prior to 2009 such as expansion, diversification concentric, joint venture, collaborations insurance provides which is patient referral centre, and acquisitions.

Firstly, diversification concentric strategy comes when KPJ Healthcare do many things in same time such as operated 19 hospitals in Malaysia, managed 2 hospitals in Indonesia, operated a nursing and health science college. For nursing and health science college, it is supplied nurses not only for its hospital, but also for the general need of the country. Moreover, the company also has two pharmaceutical distributions and other hospital supporting facility providers.

Secondly, they use acquisitions strategy which is the company acquired some hospital in Malaysia. In 1988, the company acquired the Tawakal Hospital in Kuala Lumpur which was facing serious financing problems. Then in 1989, the company acquired the Ipoh Specialist Hospital in Perak and in 1990, the company acquired the Kuantan Specialist Hospital in Pahang. Furthermore, in 1991, the company also acquired some shares in Pusat Pakar Utara, which later changed its name to Kedah medical Centre.

Thirdly, the company implemented joint venture strategy where KPJ partnered with Penawar Hospital through a joint-venture agreement of 30-70 percent share in 1995. In 1998, KPJ partnered with JCorp to develop and operate Klinik Waqaf An-Nur. Besides that, in 2002, KPJ established a joint-venture project with the Kelantan State Economic Development Corporation to operate the Perdana Specialist Hospital in Kota Bharu, Kelantan.

Lastly, the company also using expansion strategy which is in 2006, in the effort to raise funds for its business expansion, KPJ initiated a major shift in its corporate strategy from being an entirely asset-based company to one that stayed light on its assets through securitization. This was accomplished with the establishment Al-‘Aqar KPJ Real Estate Investment Trusts (REIT), which had played an important role in facilitating KPJ’s strategic expansions. Moreover the company establishes links which is collaboration strategy with insurance providers abroad, and operated patient referral centers.   


my apologise if the answer is too long but that is my answer to the question. that's all for today.