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Small and medium enterprises always remain in the growing phase because of this the companies need growth plans. So the following assessment will analyze some growth opportunities for small or medium-sized companies. The company that is selected for further studies is Babylon Health which was founded in 2013 by Ali Parsa. Babylon Health is the first digital-first Healthcare services provider with artificial intelligence it is an app that connects the patients to the doctor. At the same time, the study will include analysis of competitive advantages as a foundation of growth that includes resources, capabilities, competencies, products, and services by using different management tools. Further, some sources of funding will be identified for the company while also addressing the benefits and drawbacks of each source will be mentioned. After all the analyses a business plan will be designed for organizational growth that will include financial information and strategic objectives for a business. Finally, the exit and succession options for a small business will be highlighted while addressing the benefits and drawbacks of each option.
As an SME Babylon Health have many opportunities for growth in the respective market. Moreover, some key considerations can be like:
First, the company should focus on the potential customer so the company can identify the needs and demands. It can be done by conducting proper research by surveys or past data collected from existing customers (Homburg, Klarmann and Vomberg, 2022). At the same time, the company can improvise the service that can be more user-friendly and attract more customers as well.
As the company is already working with artificial intelligence they should focus on advertising and promotion. There are many methods that the company can adopt for advertising and brand promotion (Di Vaio, et. al, 2020). Some of them are social media marketing, blog posts and influencer marketing and some others as well.
Another growth opportunity is finding different sources to generate more revenue. For example, add any new feature on the app that can be helpful or innovative as well. Well adding an innovative new feature will help them to grow in the market.
For any new changes or development, the organization needs resources and the most important one is capital. So the company has to find some sources of finance to implement any kind of plan or strategy in the organization.
One of the key considerations is that Babylon Health can start a joint venture with a company that has the same goals and services (Sun, Deng and Wright, 2021). The joint venture not will help the company to grow and develop but at the same time, it will bring more knowledge and experience.
At last, the company should focus on whether the opportunity helps the company to grow or not. Moreover time the opportunity gets more costly than the organization's budget. That can result in the company's fail in the market as well so the organization should analyze all the factors before using any opportunities.
As Babylon is part of the healthcare industry and directly connected to the people's safety and health the company has to comply with laws and regulations. So if the company is launching a new feature in the app they should be aware of the national as well as international Laws.
Moreover, the company should analyze the growth opportunity to compare it with the vision and mission of the organization. With the comparisons, it will be clear whether the opportunity is complying with the objectives of the company or not. If the company gets disrupted from its mission and vision there are higher chances that it will unable to achieve the long-term plan as well.
Babylon can also do a market analysis to identify various aspects that can help the company grow and use the upcoming opportunities. There are various aspects of the market like the trends which get change with time. Moreover, in the case of healthcare, it has upgraded and different new technologies as requirements and discoveries. So the company has to conduct a market analysis to identify the market trends and use them as opportunities.
Another consideration that can be taken by the company is costumer segmentation. Moreover, the company can divide the groups of customers based on age, gender and geography. Dividing the customers into groups will help the company to focus on the issues people are facing while using the App. Nevertheless, the company can also identify the needs or wants of the customer to make the service much better.
At the same time identify the risk that the company is facing currently and as well that can affect the organization in the future as well (Siahaan, Sagita and Latief, 2020). It is very important to identify the risk that can also affect the growth opportunity.
To evaluate the opportunities and competitive advantages many factors need to be focused and determined. Moreover, to analyze the market sector efficiently some management tools are important. One of the management tools is the Ansoff matrix and VRIO which will help the company to understand the current situation and further opportunities (Clarissia, 2020). The Ansoff matrix is often used by the management team to make strategies to expand the product or market range. This tool helps the stakeholder to minimize the risk with the help of different growth strategies. Moreover to evaluate the opportunities and competitive advantages for growth and development this tool is hlepful. There are four types of growth strategies are:
Market penetration: From all four strategies, this is the safest for the company to consider to expanding the product or service. In this, the companies try to increase the sales rate of existing products in the existing market. Moreover, this method is beneficial for the company because the market and product are known to the organization and management. As for Babylon also it seems a much better option. Moreover, this method also provides an opportunity for the company to focus mainly on its service and try to reach its full potential. The market penetration method will also help the company with the cost of new products or services.
Market development: In this method company tries to enter a completely new market with existing products or services. The company has to include a new feature for new use of the existing product or service to enter a new market. Moreover, the company does not have proficiency or experience in the new market as well. Well for Babylon with the Current situation, it may not be possible because the existing service is a healthcare app. So a new market will not work for them.
Diversification: This method provides an opportunity for the company to enter into the new market with a company's new kind of product or service. Nevertheless, the company will also have an opportunity to explore and learn about new markets and products. As a technological company, Babylon can launch a new type of app or website to enter a new market. Moreover, the world is going toward technological advancement so they can enter a new market.
Product development: This strategy is different from the other methods. In product development, the company introduces different kinds of products or services into the existing market. This strategy helps the company to explore new products or services that they can introduce in the market (OMOSA, 2022). Moreover, for Babylon, this can be beneficial as they already have proficiency in Artificial intelligence. That might provide them an opportunity for growth in the existing market with a new kind of service via Apps or websites.
From the abovementioned the methods of Ansoff matrix the one that will be a good option for Babylon with the current situation will be market penetration. Moreover, their existing service the healthcare app provides good quality service to the customer. So to develop and grow the organization has to focus on the healthcare market with the existing product.
VRIO matrix
| VRIO framework | Valuable | Rare | Inimitable | Organization |
| Patents | ? | ? | ? | ? |
| Finance | ? | ? | ? | ? |
| Management | ? | ? | ? | ? |
| Product/App Designs | ? | ? | ? | ? |
| Innovation | ? | ? | ? | ? |
With the help of the VRIO matrix, the current capabilities of the company have been highlighted to understand the market position of the company as well. Some major capabilities of the company are innovation like Babylon has proficiency in artificial intelligence. At the same time, the app design can help the company as well in various aspects (Al-Gamdi and Balubaid, 2021). Moreover, the design will need some updates with time or new features. Nevertheless, the company has to find new sources of finance and improve its management as well to grow and develop the company.
Sources of funding are essential for the company to perform the daily operation of the organization and to achieve the opportunity for growth as well. Some major sources of funding available for the businesses are:
Business angle: These types of investors are professionals who invest in small or medium-sized companies with high growth potential. Business Assignment Help In the current scenario, investors prefer companies with strategies focused on technological and digital innovation (Cumming and Zhang, 2019). However, this approach comes with both benefits and drawbacks, some of which include
Benefits: Angle investor is always willing to take risk so companies can make some big move without any issue. At the same time, the fund is not like a loan so the company does not have to repay.
Drawback: Moreover the business does not have to repay the fund but the investor will have a part of the equity of the company. At the same time, businesses will not have full control of the company decision the investor will intervene.
Venture Capital: these are the some investor that invests in a company that has long-term plans and potential. The investors can be financial institutions or investment banks as well. Moreover, the pros and cons company have venture capital funding and some of them are like:
Benefits: Other than funding the institutes also guide or provide valuable information to the companies that will help the businesses to grow. Moreover, the institute also provides resources and help to the company in different stages. Nevertheless, the institutes have a connection in the industries that might help the company in joint ventures.
Drawbacks: Many times venture capital institutes have more than 50% of equity shares of the company. At the same time, it results in the company losing control over business decision-making and other aspects of the organization.
Bank Loans: Loans are mostly long-term financial services to the company that help the business to grow and develop in the industry (Cortés, et. al, 202). Moreover in this source, the company has to repay the whole amount and pay the interest every month as well. The company has some benefits and drawbacks while using this funding source.
Benefits: Bank loans provide funding to the business without compromising the ownership of the company. Most of the time bank also provides flexible interest and terms plans for businesses.
Drawbacks: In the bank loan there is a risk that if the company is unable to pay the interest they might personal assets or the company as well. At the same time, the company has to pay the whole amount of the funding as well.
From all these sources Babylon can select the business angles as a source of funding it has less risk than the others. Moreover, the company will have funding and the risk of equity is lesser than capital venture as well.
For a small business there are varieties of Existing or succession option available in the industry. Moreover depending upon the goals and objective success or Exit there are different option some of them are like:
Merger and acquisition: The business has an option of merge with another company that has same kind of product or services so they can grow together (Hossain, 2021). Moreover the company can also get acquired by a large organization that can provide funding or resources for development. Moreover there are some benefits and drawbacks like:
Benefits: The Company will have more resource and help from merger as well via acquisition both. Moreover with the acquisition company also have financial backup and the large organization can guide them as well.
Drawbacks: chances of losing control over the company and decision making as well. Moreover in acquisition the companies will completely handover to the large organization. That again will affect the internal and external environment.
IPO (Initial Public Offering): Make the company public by offering share so the people can buy and have part of ownership. IPO will help the company by financially as well as to make a brand reputation in the market. Moreover only works for large organization and have some benefits and drawbacks as well like:
Benefits: The Company will have significant amount of capital which can be used for the growth and development. It will also increase brand reputation and also make the management responsible.
Drawbacks: The organization has to comply with various laws and regulations of the government. Moreover the owner will loss the ownership form the company at the same time there will be lack of privacy as well.
Liquidation: This method helps the companies to Exit from the market when the business is not profitable anymore or in completely loss. Moreover in this the owners can sell all the entire asset or close down the company as well (Hossain, 2021). Nevertheless the liquidation method also consists of some benefits and drawbacks as well like:
Benefits: it help the owner to completely close down the business that is already in loss or no longer in profit. Moreover liquidation also helps in settling some debts of the company and collect some fund for the next project as well.
Drawbacks: There can be chances of conflicts in the organization regarding the Existing because many employees will lose their jobs. At the same time the owner will have issues while starting a new business as well with lack of support and funding.
Those were some major option for the company of succession or exiting from the market. Moreover Babylon is a medium sized company that has potential of growth in the future. So they do not have to exit from the industry instead they can select the option of merger and acquisition. That will help the company to success in their respective field by achieving the upcoming opportunity.
Overview of the business idea
Babylon Health provides online healthcare services via websites as well as Android and IOS applications. Moreover, the service includes 24/7 availability of doctors, Home delivery of prescriptions and different plans ETC. Further, the company needs a business plan to grow and develop in the healthcare industry (Bohr and Memarzadeh, 2020). Moreover, the plan that the company can work on is adding a new feather or developing a new App for the user. The app with the feather scans and detects diseases related to skin and hair. Through which the user does not require a third person intervention.
Product and service description
The service the company is working on is launching a new app related to healthcare itself but with an innovation. Moreover, the app includes many features now people can only scan the skin via the application and can detect the problems and related medicine as well. The app will help people detect skin or hair-related problems without any third-person intervention. In other words, it will be a self-service application that users can use anywhere, anytime without any worries or problems.
Unique selling proposition (USP)
There are some unique selling propositions of the app and some of the major ones that will help in making it different from other services. Moreover, the App is based on artificial intelligence that makes the whole system automatic and trustable as well. The app will not just detect health problems but also provide prescription and diet plans for fast recovery. Nevertheless, the App is automated but is user-friendly as well like a Chat bot that will guide the user.
Business aim and objectives:
The main objective of the company is to increase the business revenue by 5-8% at the end of the year 2023.
Complete the target of 10 million new application user till 2024 and at least 60k downloads per month.
Increase the company net profit by 15% till the year 2024.
Reach the revenue of 1.50 billion in the 2023.
Pestle analysis
| Political factors: There are new privacy and regulatory policies to protect users' data (Walsh, Bhagavatheeswaran, and Roma, 2019). The company requires a quality security system. | Economic factors: After Brexit, the British economy is not stable, which can affect the company’s external factors. |
| Social factors: The trend of digital automation and demand for innovation will help the company attract more customers. | Technological factors: With the help of technological advancements, the company can advertise via social media platforms. |
| Legal factors: Changes in taxation can increase the company's costs. Brexit has changed many regulations. | Environmental factors: Implementing CSR will enhance brand reputation in the market. Moreover, the company can use electric vehicles. |
SWOT Analysis
| Strengths: Proficiency in artificial intelligence and digital tools. | Weaknesses: Lack of financial stability to achieve future goals efficiently. |
| Opportunities: Demand for new innovation and technological advancements. | Threats: Increasing number of cybercrimes can be a threat to the company as well as users. |
STP approach
Segmentation: segmentation can be done by geographically, demographically, Behavioral and psychological. Moreover the company will target the customer by demographically like age because the Gen Z attracts toward AI (Razavi Hajiagha, et. al, 2022.). Moreover geographically in developed countries Automation is rapidly growing.
Targeting: demographic segmentation will be more beneficial as first the new generation prefer AI and this includes focusing on the age of the person. As well as very much concern over disease especially when in come to skin and hair.
Positioning: To target the segment of people social media advertising and promotion is required. Moreover use popular social media platforms will be more preferred.
Marketing mix
Product: The service company is providing is an app with AI technology and scanner to detect any skin or hair Moreover from the results the AI will also recommend prescription and diet plan.
Price: Downloading the app and up to 3 scans will be free then monthly based subscription will be available.
Place: The app will be available on IOS and Android app stores for feasibility.
Promotion: the app will be promoted with various social media platforms, blog, influencer marketing and online article.
People: The people include App developer, AI professional, marketing team and finance department.
Process: User have to scan the area of infection and the Automation system will detect the disease within minutes and will prescribe medicine and diet plan for fast recovery.
Physical evidence: prescription will be home delivered and the scanner will be available in limited store as well.
Competitor's analysis
| Basis of difference | Babylon Health | Web MD | Teladoc |
| Automation | Scanner detects skin and hair problems. | Check symptoms via checker to access drug information. | Does not provide any automatic option. |
| Related medicine and diet recommended | According to the results, recommends diet plans and medicine. | By checking symptoms, provides medicine information. | Doctors via video conference recommend medicine. |
| Availability | 24/7 | 24/7 | 24/7 |
Management team or structure: The Company can use functional structure to manage the employees and daily operation of the organization. The management is divided in different groups depending on the function. Moreover like 5 worker are in the marketing, 3 in the developer and 4 in the team of financial department. The functional structure will also make the employee responsible and manger can focus on particular task (Joseph, and Gaba, 2020). That will result in the company to achieve the organizational goals and the upcoming opportunities as well.
Budget:
| Expenses | Cost |
| Development | 10 million £ |
| Marketing | Approx 500k £ |
| Maintaining | 1 million £ |
| Indirect expense | 1.5 million £ |
| Total | 13 million £ |
Monitoring and control: At the last the company needs to control every action taken by the management to achieve the goals or the objective. There are some ways to control like benchmarking mostly used by the IT companies to overview and make report on the implication (BENCHMARKING IT APPLICATION CONTROLS, 2020). As well as whether the new strategy is making any changes or not. Nevertheless the management also makes the progress report in every step of the implication.
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CONCLUSION
Lastly, the assessment concluded by identifying key considerations for growth opportunities and it is very necessary for development of the business. At the same time Ansoff and VRIO matrix assisted in identifying capabilities, resources and other factors. Nevertheless, some major funding sources like business angle, venture capital and other were discussed with advantages and disadvantages. Moreover, for the company Babylon Health new ideas have been recommended with a business plan for the overall explanation from the idea to budget as well.
References
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