Netcare’s International Expansion

Author :

Saul Klein, Albert Wocke

Pages :

22

Product Type :

Case

Reference # :

9B09M005

Teaching Note :

8B09M05

Institute:

Ivey Publishing

Setting:

South Africa, Large

Year:

2007

Keywords:

Business and Society; Global Strategy; Emerging Markets; Hospitals, Entrepreneurship, General Management/Strategy, International, Health Care Services

Summary/Abstract:

In 2008, the acquisition of the General Healthcare Group (GHG) in the United Kingdom had propelled Netcare Limited (Netcare) from a predominantly South African operation into one of the largest private hospital groups in the world. One of Netcare's key long-term goals was to deliver innovative, quality health-care solutions to patients in every continent. Recent South African parliamentary legislation had introduced the potential for regulated pricing and collective bargaining in medical centres, which could change the industry structure and possibly affect Netcare's strategy. As acquisition at home would be increasingly subject to stringent scrutiny from competition regulators, Netcare wondered what the impact of global acquisition would have on executing its strategy. What lessons could be learned from the GHG acquisition, how could those lessons be leveraged for further international growth, and what continent would be best suited to expansion? The case illustrates the international expansion strategies of Netcare, and illustrates the challenges of operating in an emerging market. The ability to overcome these challenges is the basis of a competitive advantage when entering developed markets.