Palace Group Swot Analysis
Strengths:
· China is a country that is considered to be aging when 7 percent of its population is over 65, or 10 percent of its population is over 60, according to the United Nations. Moreover, estimates say that by 2050 1/3 of China’s population will be over 60 what creates good present and future potential buying power for the product offered by the Palace Group.
· The company has experience of operating overseas, since it already has one unit opened in Tel-Aviv, Israel.
· A phenomenon known as “4-2-1”—where a family consists of four grandparents, two parents, and a single child—has led to a situation where fewer young people are available to care for aging parents, meaning that even if the desire from the elderly is low to …show more content…
greater desire to live closer to the family by Chinese customers).
· Like the hotel business in its early days in China, the senior-care business is seeing a considerable shortage of professionals and caregivers. The huge lack of trained healthcare workers has also been a big problem,[3] meaning that if company starts operating in China, it might encounter the problem of hiring qualified staff and will need to bring staff from US, which will might be problematic due to the high costs and lack of desire to move from the people.
· Research conducted by L.E.K. states that consumers prefer to own instead of rent and pay membership fees because of cultural reasons such as a better sense of security[6] – the company might have to adapt to this cultural factor if it starts operating in China. …show more content…
Threats:
· About 96 percent of elderly Chinese said they prefer home-based care to living in a nursing home,[7] including the customers of the niche market that the Palace Group is targeting.
· China Senior Care, a US company, is developing a 64-bed five-star senior community in Hangzhou that plans to charge more than 30,000 yuan a person every month, which is a possible direct competitor of the company with already a clear plan and aim of operating in the country.
· Competitor - Cascade Healthcare, a Seattle-based joint venture between Columbia Pacific Advisors and Emeritus Corp, operates in Shanghai since January 2013. It has another joint venture with Sino-Ocean Land, in Beijing that is opened in July 2013;[2] The reason for creating ventures was to get localized as China had certain cultural factors different from US to have been considered, what the Palace Group will have to consider doing as well if it starts operating in China.
· Weak and party-controlled legislative body, poor rule of law, which might make it hard for the company to properly operate in the
· China is a country that is considered to be aging when 7 percent of its population is over 65, or 10 percent of its population is over 60, according to the United Nations. Moreover, estimates say that by 2050 1/3 of China’s population will be over 60 what creates good present and future potential buying power for the product offered by the Palace Group.
· The company has experience of operating overseas, since it already has one unit opened in Tel-Aviv, Israel.
· A phenomenon known as “4-2-1”—where a family consists of four grandparents, two parents, and a single child—has led to a situation where fewer young people are available to care for aging parents, meaning that even if the desire from the elderly is low to …show more content…
greater desire to live closer to the family by Chinese customers).
· Like the hotel business in its early days in China, the senior-care business is seeing a considerable shortage of professionals and caregivers. The huge lack of trained healthcare workers has also been a big problem,[3] meaning that if company starts operating in China, it might encounter the problem of hiring qualified staff and will need to bring staff from US, which will might be problematic due to the high costs and lack of desire to move from the people.
· Research conducted by L.E.K. states that consumers prefer to own instead of rent and pay membership fees because of cultural reasons such as a better sense of security[6] – the company might have to adapt to this cultural factor if it starts operating in China. …show more content…
Threats:
· About 96 percent of elderly Chinese said they prefer home-based care to living in a nursing home,[7] including the customers of the niche market that the Palace Group is targeting.
· China Senior Care, a US company, is developing a 64-bed five-star senior community in Hangzhou that plans to charge more than 30,000 yuan a person every month, which is a possible direct competitor of the company with already a clear plan and aim of operating in the country.
· Competitor - Cascade Healthcare, a Seattle-based joint venture between Columbia Pacific Advisors and Emeritus Corp, operates in Shanghai since January 2013. It has another joint venture with Sino-Ocean Land, in Beijing that is opened in July 2013;[2] The reason for creating ventures was to get localized as China had certain cultural factors different from US to have been considered, what the Palace Group will have to consider doing as well if it starts operating in China.
· Weak and party-controlled legislative body, poor rule of law, which might make it hard for the company to properly operate in the