Dr. lal Pathlab case study Analysis/Solution

Marketing-- Dr. Lal pathlabs 1

Gearing Up For Change

Lessons learnt from managingfamily enterprise

Presented by: Chitwant R. TahalyaniClass: MBA 3

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Dr. Lal PathLabs- case studyHow a family owned business

worth Rs. 43 Crore turned into a Rs. 500 Crores professionally run chain

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Brief History Dr. Arvind Lal is the pioneer of Dr. Lal

PathLabs Started in 1949 Experience of over 6 decades Annual revenue of Rs. 500 Crores Delighting over 10 million customers per year Mr. Om Manchanda joined Dr. Lal PathLabs as

COO in 2005, and in 2008 Mr. Om was promoted as CEO

125 labs and 2000 collection centers all over India

India's leading diagnostic chain8/27/2013 Marketing-- Dr. Lal pathlabs

Marketing-- Dr. Lal pathlabs 4

Old Business Model

Owner Managed

Path Labs

Collection Centers8/27/2013

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Dr. Arvind Lal Thinking

Expansion of the

business

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Collection Centers

Partner Labs Owned Labs

Owners

New Business Models

Professional Managers

Marketing-- Dr. Lal pathlabs 7

SWOT Analysis of New Business Model

Strengths

Past experience of 60 yearsStrong brand nameGreat work force

Weakness

Shortage of fundsLimited regional presence

Opportunities

Bigger market to captureRevenue generationEntering into Global worldProfessional Working

Threats

Negative marketingThreat of competitors

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Marketing-- Dr. Lal pathlabs 8

Changes in New business Models

Shifting from regional window to globally recognized Pathlabs

Testing process with zero errorsExpansion into new markets with

150+ new labsStrategic alliances with /

acquisition of existing playersPublic - Private Partnerships

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Challenges faced during the expansion

1) Build trust with the promoters: Change Resistance

2) Need to stay informed: Emotional and practical attachment Win trust and confidence

3) Build the management team: Imperative Investment not cost

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4) Focus on larger and long term goal: Emotionally as well as physically tiring Help new hires to settle down Meeting the targets of the company Calm and in control

5) Cultural change: Don’t be revolutionary but be

evolutionary Crisscross the hierarchy

6) Transparency Perspective style of management Set meetings and forums

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7) Invest: Technology System Processes

8) Decision-making: Quality information Meeting with every business department Efforts in right direction

9) Incentives: Fruits for their hard work

10) Learn to forget: Negative experiences

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Marketing Mix of Dr. Lal PathLabs• Mr. Om Manchanda has given emphasis on 5

marketing P’s:• Pricing• Promotion• People• Process• Physical evidence

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Marketing Mix

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My LearningChange leads to developmentBe informed and keep informingGain trust and confidence of

employersBuild a powerful teamTransparency should be the

mantra of management styleContinuous development-

Machinery, human resource8/27/2013

Marketing-- Dr. Lal pathlabs 14

Thank You8/27/2013