Strategic Management Of Ryman Healthcare: A Leading Retirement Village Operator

About Ryman Healthcare

Question:

Discuss about the Global population trends and policy option.

Over the years, the global population has experienced immense dynamics in almost all the aspects, including socio-economic, political, and social and health aspects. The healthcare systems have developed significantly in the global scenario, which in turn has increased the life expectancy of the population of the world in general (Gerland et al., 2014).

Figure 1: Increase in the population aged above 65 years over the years

(Source: Census.gov, 2018)

Given this statistics, the provision of health care facilities and a proper living environment for the elderly population is becoming an issue of concern in all the corners of the world, especially in the developed countries of the world (Ezeh, Bongaarts & Mberu, 2012).

One such increasingly popular concept, which is especially being implemented in some of the developed countries, is the model of retirement villages (Dall et al., 2013). A “retirement village”, by the sense of the term, is the residential complex or premise, which are predominantly occupied by retired and primarily elderly people, in lieu of contract with the village operator or due to the facility being provided by government or some welfare organizations (Crisp et al., 2013).

Taking the context of retirement villages in consideration, the report tries to look into the working and strategic management of one such organizations, the Ryman Healthcare, which has been one of the predominant service providers operating in the concerned industry over the last few decades (Bähler et al., 2015). The report tries to discuss the overall business environment and also the strategic options, which are available for the concerned company for the purpose of future expansion, and the changes, which they can implement in their infrastructural and operational framework (Bernard et al., 2012).

The Ryman Healthcare Company, founded in 1984, by John Ryder and Kevin Hickman, is a company based in New Zealand and primarily operating in New Zealand and Australia. The company is one of the most popular operator in the retirement village and rest home industries in the concerned countries, with 31 operating villages in New Zealand itself. The company has also started venturing in Australia, with one of the villages of the company already operating in Melbourne and five others coming up in Victoria region of the country (Macdonald, 2018).

The company has over the past few years developed spectacularly and is currently listed as one of the largest companies in the NZX 50 Index. The market capitalization of the company, as in December 2017, has been over $5.2 billion NZD, thereby indicating towards high profitability of the company in the current period. The underlying profit of the company in the concerned year has seen to rise up by 13% to $178 million while the reported profit of the same has been seen to go up by 17% to 357 million dollars (Odt.co.nz, 2018). The dividend of the company (full year) has also increased by 13% to 17.8 cents per share. The company in the current year made record investment of a whopping 525 million dollars, which given the high profitability and prospects of the company, is expected to bring even more profitability and scopes of long term expansion for the same in the coming years (Saville-Smith & Fraser, 2014).

Financial Performance

Figure 2: The villages of Ryman Healthcare in New Zealand

(Source: Rymanhealthcare.co.nz, 2018)

The company deals with a mixed market of elderly healthcare services as well as property development and is also one of the foremost of its kind to provide a host of living and time spending options for the elderly people along with healthcare and security facilities for the same to make their life easier and more convenient. The retirement villages operated by the company not only provide world class facilities for a good living but also facilitates availabilities of different healthcare facilities which include the support of mini-hospitals for the residents and secure dementia wings for the same (Jones, 2016).

Over the last few years, the company has seen a steady increase in its profit which can be seen from the following figure:

Figure 3: Growth of the underlying profit of the company over the years

(Source: Rymanhealthcare.co.nz, 2018)

With years of experience in the elderly healthcare and habitation market, Ryman Healthcare works towards achieving its vision of the creation of a healthy and less vulnerable elderly population in the countries where it operates. One of the primary missions of the concerned company is to build up such facilities where the elderly and the retired population of the countries can independently enjoy their lives to the fullest post retirement, under the framework of “Continuum of care”, as described by the company itself (Nzherald.co.nz, 2018). The company with an employee strength of 4000 plus people of different specializations and also supports innovations and advances in the quality of life of the elderly population by taking various philanthropic initiatives, the primary one among them being the Ryman Prize. This annual prize of $250,000 NZD is given by the company to the best idea or innovation in the aspect of development and improvement of the health and overall living conditions of the older populations of the countries (Macdonald, 2018).

For the purpose of facilitation of the same, the company provides apartments or units in their retirement villages and rest homes to the desiring residents, which the residents can occupy for lifetime use. Deferred management fees model is used by the company, which allows the residents or their estates to receive a lesser amount once they move out, with the deduction being capped at 20% for a time of over five years (Sawers, 2013). The following section of the report tries to analyze the overall environment and commercial framework in which the company operates in the contemporary period.

To understand the performance and operational pattern of any company and their scopes of long-term sustainability and profitability, it is crucial to study the overall environment and the traits of the industry in which the concerned company operate and the key factors determining the working and performance of the concerned company. For the purpose of incorporating the same, both the macro trends and the trends more focused to the company itself need to be analyzed. Keeping this into consideration, this section of the report tries to analyze the overall environmental and industrial traits, which have implications (both positive as well as negative) on the operational framework and the profitability of the Ryman Healthcare company (Zuo et al., 2014). For this purpose, PESTLE analysis is conducted which is as follows:

Elderly Healthcare Services and Property Development

One of the most efficient, wholesome and widely used model for the purpose of studying the macro environments in which the concerned company operate in the contemporary period is the PESTLE analysis. The same, by incorporating the political, economic, technological, legal, social and environmental aspects, which influence the company, helps in getting an overview of the operating conditions and implications of the same and also helps in understanding the areas of future advantage, expansion, prospects as well as threats in the industry of the concerned company (Newton, 2014). Here, Ryman Healthcare being the company in this case, the following section conducts the PESTLE analysis on the retirement home and healthcare industry, especially in the developed economies of New Zealand and Australia.

Figure 4: Macro factors influencing the overall operational framework of any industry

(Source: Pestleanalysis.com, 2018)

The company in concern operates in the elderly healthcare and habitation industry of the countries like New Zealand and Australia, both of which are counted among the highly developed and economically growing countries in the global framework. The political environment of the countries is known to be stable and contributing to the overall growth and increase in welfare of the countries (Marsh & Miller, 2012). On the other hand, with the population of both the countries showing continuous increase in the old age sector, construction of appropriate and adequate care facilities for the elderly people has become one of the primary political agendas of these countries too. Ryman Healthcare, in this scenario, has scopes of profitability and expansion in the country itself, given the presence of various assistance and infrastructural facilities on part of the government. Other developed countries, showing the same demographic and behavioral trends also indicates towards presence of huge scopes of expansion of operations of the concerned industry in the coming years (Goldstone, Kaufmann & Toft, 2012).

While analyzing the economic factors and their implications on the concerned industry under the domain of which Ryman Healthcare operates, it has to be kept into consideration that the two of the countries in which the company operates are considered as developed economies with substantial economic growth and with majority of the populations enjoying considerable financial stabilities (Schneider, 2012). The government of both the countries, Australia and New Zealand keeps a robust share of their public expenditures for the purpose of finding and facilitating elderly people’s healthcare, as can be seen from the following figure:

Figure 4: Share of elderly healthcare expenditure borne by different sectors of Australia

(Source: Ncoa.gov.au, 2018)

The scenario in New Zealand also is highly similar to that of Australia, which is depicted, in the above figure. On the other hand, the retired personnel themselves due to the economic stability and savings, which they can accumulate during their job tenure, often fund elderly healthcare and the costs of post retirement life. The industrial and commercial prosperities of these countries also facilitate the same considerably (Steptoe, Deaton & Stone, 2015). The governments of the concerned countries also encourage investments for the purpose of research and development in the aspect of building up of infrastructure for provision of quality healthcare and life style to the elderly population of the countries. These factors are expected to contribute positively to the growth and future prospect of the concerned industry and the company in consideration. 

Mission and Philanthropic Initiatives

However, the services being costly, their availability is still now confined to the rich and upper middle class of the economies in general and the poorer section of the countries can still not think about buying residential facilities in these retirement villages. In addition to that, the concept is still not feasibly applicable in the developing countries where a considerably bigger share of the population are financially unstable, with higher economic vulnerabilities and insecurities post retirement (Yogo, 2016).  Ryman elderly care, in this respect, can gain long term profitability, provided that they take the affordability issues into consideration and also introduce services catering to the needs of the elderly people in the developing countries, the needs being more of necessary nature than luxury, in the same. 

One of the primary driving factors behind the increasing expansion of the concerned industry of elderly residential and healthcare facilities post retirement is the changes in the demographics in the global scenario, especially in the developed countries and the dynamics in the way of living of people in general (Jackson, Howe & Peter, 2013). With increase in the life expectancy of global population in general and developed countries, in particular the number of elderly people (above 60 years) is expected to increase in the coming years.

As can be seen from the above figure, the elderly population of the country has been increasing consistently and is expected to increase even more. With the need for making better provision of lifestyle and survival of elder people of the countries increasing, various concepts and models of healthcare and lifestyle implementation are coming into existence, some which have already been implemented in the real case scenarios. This in turn is expected to encourage the concerned industry, as more people that are elderly would push up the demand for such retirement villages and rest homes in these countries. The life style and the changes in the family size over the last few years have also been conducive to the growth of the old age health care and habitation facilities.

The industry taken into consideration depends considerably on the technological development and innovations in the global framework. Healthcare for elderly people are considerably different from that of younger population as elderly people are susceptible and vulnerable to many issues which needs special attention and technologies. The innovations in the current period facilitate these provisions extensively and cost effectively. The increase in automation in many aspects of human life is also an important contributing factor in the growth and future prospect of the industry in consideration and the concerned company, which deals with the operation of elderly rest homes and retirement villages. This is primarily because for operating these facilities for elderly people, special amenities and facilities have to be maintained for which technological advancements are mandatory. This is considerably facilitated by the current technological advancement in the global framework in general and in the concerned countries in particular.

For efficient working of any industry the legal factors operating in the country is of utmost importance as they have considerable implications on the overall health of the industry and its future profitability and sustainability. In this context, the legal framework in New Zealand and in Australia is considerably contributing to the growth of the industry in consideration and the companies operating under its domain, which primarily includes Ryman Healthcare.

Deferred Management Fees Model

New Zealand already has a robust Retirement Villages Act, which was implemented as early as in 2003. The act primarily strengthens the protection and welfare of consumers who buy facilities in such villages. There is a regime of control and monitoring of the providers of such facilities, which looks into the welfare maximization of both the consumer as well as the producer sides. Apart from the same, there also exists a Code of Practice which was implemented by the government in 2008, for the purpose of setting out the minimum requirements and protocols which the supply side providers of this industry have to meet. This in turn makes the operational framework of the concerned industry legally well settled, both in New Zealand and in Australia, the latter having similar legal frameworks as the former.  This in turn facilitates the operation of Ryman Healthcare too as the operators know the pros and cons of their actions and the legal framework of the countries where they are operating are also transparent.

However, while analyzing the future scope of expansion of the industry and the company in concern it has to be taken into consideration that not all the countries have such robust legal framework paying heed to the need for the establishment of the retirement villages as the concept itself is very new. This can considerably limit the scopes of this industry in these regions. Thus, spreading awareness regarding the benefits and social impacts of retirement villages has to be created in all levels, which Ryman can take on themselves.

The primary resource, which the industry in consideration requires for the establishment of retirement villages, is land in areas, which are not overtly populated, but not also very far from the areas of convenience. Given the fact that the countries where Ryman Healthcare Company operates are already heavily populated, acquiring such lands for establishing retirement villages is an issue of environmental concern (Altman, Lawton & Wohlwill, 2013). However, much of this problem is solved due to the fact the villages which are built for habitation and relaxation of retired people contain sufficient green components and natural substances in their premises which on one hand contributes towards healthy living and on the other hand also helps in preserving the quality of the environment. The industry, apart from the allocation of and resources does not show any other prominent traits of environmental damage. This in turn contributes to the sustainability of the business positively.

PESTLE analysis, as conducted above, however, gives an overview of the overall trends and patterns prevailing in the operational framework of the concerned industry and does not take into account the more company specific aspects of Ryman Healthcare itself. These aspects, including consumers, producers and suppliers of the company, are of crucial importance to draw the strategic implications for the company and are discussed in the following section with the help of Porter’s Five Forces Model.

The Porter’s Five Forces Model is an efficient tool for measuring the competitive elements of any business. It takes into consideration five crucial forces which contribute in the competitive intensity in the concerned industry, which in turn help in studying the aspects of profitability, prospects and sustainability of the industry and the companies operating in the same in short term as well as in long term. The five forces in the model are shown in the following figure:

Industry and Environmental Analysis

The following section of the report tries to analyze these five components on the perspective of the industry dealing with retirement villages and rest homes for the elders, with special emphasis on Ryman Healthcare Company:

Rivalry amongst existing competitors- As discussed above, the concerned industry has been growing in the past few years, much of which can be attributed to the change in the dynamics and patterns of the ways of living and the needs of the elderly residents of the countries, especially the economically developed ones like New Zealand and Australia. This has led to an increase in the number of the supply side providers in the industry. Ryman Healthcare, for example, in spite of being one of the leading operators in the retirement villages’ domain, faces considerable competitors from similar service providers, which includes Metlifecare, Oceania, BUPA and others (Hu et al., 2015).  Few of its competitors have already gained economies of scale in their production of services like Ryman itself due to the long tenure of their existence and the increasing demand for their services.

Threats of new entrants- The industry has the characteristics of a high initial fixed cost as the initial investment required for buying new lands and establishing extensive residential facilities is huge. This constricts the number of supply side providers in the industry. However, the prospects of earning high profits and long-term usage of the capitals, along with the increase in the demand for the services have been encouraging more and more companies to venture in this domain, especially in the contemporary period. Thus, the threats of the new entrants in this industry are increasing, which in turn increases the competition for the company in consideration.

Bargaining Power of the Suppliers- The industry in concern, have the demand for resources, which includes household materials, construction resources as well as healthcare personnel and commodities. The operators in the concerned industry can derive their resources from many sources. In this context, Ryman Healthcare, the company in concern enjoys some bargaining power in the market, which is also backed up by the robust supply chain of raw materials and resources, which Ryman needs for the operation of the retirement villages. Apart from the economies of scale, which the company enjoys due to increase in the number, and area of the villages, it also gets its supplies of materials like carpets, supplies and plumbing at an extremely affordable price range (Glass & Skinner, 2013). The company also employs in house labors and builders, which increases the profit margins. Due to the existence of the strong and loyal supply chain in the company and the presence of many providers of raw materials and intermediate resources in the market, the bargaining power of the suppliers to the Ryman Healthcare is not noticeably high, as they know that they can be easily substituted. This in turn gives the company an edge over its competitors.

Bargaining power of the buyers- The buyers in the concerned industry has been consistently increasing, especially in the countries like New Zealand and Australia, where the population is aging rapidly. However, the supply side players are also to some extent increasing, which gives them several options to choose from, thereby contributing to their bargaining power.

Threats of Substitutes- One of the primary limitations of this industry and of Ryman Healthcare in particular is that their services are considerably pricey and can only be afforded by people who are well off even after retirement. This constricts their clientele substantially. On the other hand, the governments of the countries have also started introducing facilities and amenities which help the elderly people to enjoy a higher quality of life staying “ Ageing In Place”, that is in their original homes only. This poses as a credible threat to the profitability and long-term sustainability of the industry and the concerned company (Glass & Skinner, 2013).

From the above discussion and analysis of the macro trends prevailing in the industry where Ryman Healthcare Company operates, it is evident that there is an overall positive outlook towards the expansion of the industry both from the side of the consumers as well as the producers. This is primarily because the industry deals with the development of quality life of an increasing elderly population in the society. The market for the same is also seen to be expanding as globally the industry shows a growth rate of 5%. The profitability of the same, is however, a a subjective matter as with increase in the expansion of the market there is an increase in the number of supply side providers as well. The Ryman Healthcare, for instance, face stiff competition in New Zealand from similar service providers, which include Oceania, Metlifecare, BUPA, Arvida and others. These are the factors, which have to be taken into account while designing strategic framework of the company in concern.

To understand the capability, strength and weaknesses of Ryman Healthcare itself and to assess the comparative advantages and competitive positions of the same, a SWOT analysis of the company is performed in the following section, which is depicted in the following table:

Strengths ·         Increasing profitability and revenue generation due to expansion of operations in Australia and New Zealand, leading to economies of scale in the company ·         Monetary assistance and supportive policy framework provided by the governments ·         High working capital and investment strength ·         Economies of scale in production of services (Silvertalkies.com, 2018)

Weaknesses ·         The brand portfolio is constricted to the elites only, thereby losing a significant share of potential clientele ·         Lack of diversification in the operational framework of the company ·         The industry being comparatively new itself, the company has various gaps in its infrastructural framework and is still not fully ready for the economic and other social fluctuations and which can occur in the domain where it operates

Opportunities ·         Global market is expanding ·         Opportunities of acquisition of new lands and properties ·         Increasing venture capital ·         Increased scope of diversification ·         Increasing demand in the domestic markets

Threats ·         Increase in competition with new supply side providers ·         Increase in the labor costs ·         The profitability is expected to decrease with growing competition ·         Changes in the overall price levels ·         Development of government’s policies to promote “Ageing In place” facilities where the elderly citizens can enjoy amenities and healthcare facilities without shifting to any other place (Wiles et al., 2012). If this policy gains popularity then it is expected to decrease the scope of the company in the long run

From the above analysis, it can be asserted that Ryman Healthcare has acquired comparative advantages and economies of scale in the concerned industry, especially in New Zealand and also has considerable prospects in Australia, where it is already expanding. However, there are threats of new entrants and also competition from the existing competitors. The company also faces constriction in their clientele size due to affordability issues.

Keeping the comparative advantages as well as the limitations of the company in consideration, this section of the report tries to indentify the key options available for the same for increasing the profitability, sustainability and future prospects of the same. To identify the same, Ansoff’s strategy matrix is used:

Market Penetration- To increase the penetration in the existing markets with the existing products, the company needs to concentrate on their cost effectiveness and promotional strategy framework. The idea of retirement village being new, Ryman can involve themselves in awareness generation regarding the benefits which their potential clients can receive in these residential facilities. The company, by providing different clusters of facilities in different price packages, can attract more customers in the exiting market.

Product Development- The Company needs to emphasize on introducing new services excluding elite retirement villages and rest homes. It can concentrate on building up different critical care facilities in these villages itself, apart from dementia care and the basic ones, which they are already providing. This may help them to increase the revenue generation from the existing market itself. One of the problems which exists in terms of buying properties in the retirement villages is the hurdles faced by the customers to get proper resale values when  they try to sell these expensive properties. Ryman, in this scenario, can try to tie up with different real estate mediators as well as hospitals to increase the demand for their products, which in turn can help in reselling their properties easily, thereby increasing the appeal of their services in the market.

Market Development- With the demand for retirement villages and rest homes for elders increasing in other countries, both developing and developed, the company has extensive scopes in increasing their operational framework in the emerging markets of other countries. Assuming that the access to economic resources are limited in hands of most of the elderly people in the developing countries, due to the absence of robust pension frameworks, the demand for properties like this can be low in these countries. Ryman in this context can bring changes in their conventional strategic framework, by introducing monthly or yearly renting facilities of their properties, thereby making it easy for a greater share of people to avail the services.

Diversification- The services now provided by the company have affordability issues as it provides convenience along with amenities of luxury, which not all can afford. This problem is especially acute in developing countries. Keeping this into consideration the company can venture in the developing countries with facilities, which provide the healthcare and security amenities to the elders, barring the other luxuries, at a lower cost (Johnson, 2016). In the current markets too, Ryman can introduce multi-slab pricing, using the concept of price discrimination, charging lower for residential facilities with basic amenities and higher for those inclusive of luxurious services. Diversities in services can be also brought by Ryman, by bringing in the option of customization for the customers and also introducing exclusive transport facilities from the villages to the homes of the residents as well as to the primal locations where they need to visit.

Keeping the above discussion in consideration, the primary strategic step that the company can take is the strategy of market development and exploration of opportunities of diversification. The options of diversification, with that of product and market development have also to be taken into consideration in order to make the strategic framework of Ryman inclusive and wholesome. With the demand for these services increasing in other countries, developed and developing countries, the company can consider exploring these markets, both for the purpose of land acquisitions as well as for the purpose of increasing their clientele. Renting their facilities off can be a plausible option for expanding their services, pushing the demand upwards. Cost effectiveness is also required to be reached for the purpose of getting competitive edge over its rivals. Effective tie ups with linked industries like hospitals and real estate mediators can also help in expanding the business. Another strategy which can be proposed in this respect is improvement of the service framework, such that the essential services as well as customization options are available to them whenever needed and the individual feedbacks are taken into account and addressed seriously by providing personal attention.

The proposed strategy of market expansion and market and product development seems to be credible when assessed in terms of the SAFe criteria, which can be shown as follows:

Suitability	·         Provided that the strategy option of market development indicates towards the scopes of the company in the unexplored markets of the developing economies, the strategy option seems most suitable. ·         The strategy of renting of the facilities of Ryman, under diversification seems to be a plausible way to expand the market demand by adding more potential customers. ·         The option of customization can help the customers to choose services according to their convenience, thereby addressing the affordability issue considerably ·         The transport facilities being not that developed in many of the developing countries, the strategy of inclusion of exclusive transport facilities to locations of importance can be appealing for the residents ·         Land resources being cheaper in the developing countries, the cost of establishing retirement villages in those places will be cost efficient, thereby increasing economies of scale for the company.
Acceptability	·         The strategy of exploration of new markets and clientele is expected to increase the profitability and size of clientele. ·         With the increase in the demand for retirement villages and rest homes services, the risk of investing in the new markets seems to be low. ·         The strategy of product diversification can be effective in this aspect as greater flexibility in the service framework can help in increasing the acceptability of the same among greater number of potential customers. ·         Introduction of less luxurious low cost amenities (which are expected to include the necessities, barring the luxurious amenities) are expected to reduce the cost of service providence on part of the company, thereby increasing the acceptability of the strategy even more. This makes the strategic option of market development an acceptable option.   ·         The higher scopes of profitability, expansion of the clientele may help  Ryman Healthcare to keep their stakeholders satisfied. Ryman can in fact attract the local investors in the developing countries where they aim to venture. ·         The initiative of introduction of renting facilities can increase the preference of Ryman’s services, increasing the acceptability of the concerned strategy.
Feasibility	·         The strategy seems practically feasible given the robust investment strength, working capital and resource strength of the company (Wilson & Gilligan, 2012). ·         With high chances of pooling in local investors, the strategy of diversification seems more feasible as the local investors are expected to have more knowledge about the demand traits in these developing countries. ·         The company already has in house skilled employees and cost effective supply chain which can contribute positively in implementation of the proposed strategy.. ·         The potential strategy of establishing tie ups with the industries having backward and forward linkages like hospitals, counseling facilities and real estate agents, can help in expanding the business as well as help in establishing robust supply chain, thereby making the strategy option of market development more feasible.

Thus, in terms of the SAFe assessment, it can be asserted that given the current scenario, Ryman Healthcare can implement the strategy of product and market diversifications for the purpose of increased profitability and competitive sustainability.

The proposed strategy of introduction of market development, with a mix of product diversification, though seems feasible, however needs changes in the structure of the current operational framework of the company. The services, which are currently provided by Ryman Healthcare in the current period, are specifically for those who have the purchasing power to afford the luxury of staying in those amenities and facilities stuffed residential properties. This limits the clientele of the company largely. This can be attributed to the fact that Ryman mainly operates in developed economies like Australia and New Zealand, where the residents are expected to have greater economic abundance. For expanding their services to the developing countries as well as to the lower or middle socio-economic strata of the developed countries, the company needs to change their operational structure (Harmon, 2014). The main change can be brought forward by making the production and service provision framework from being rigid to flexible. For successful market development, the company can emphasis on the highly developing economies like China, Japan and India, which are also facing the problem of increasing proportion of old age population with time. Introduction of different packages according to type of services, customization facilities and renting facilities can help in increasing the number of clients in these economically growing countries with significant old age population. however, for the same, a more dynamic and inclusive management and employees are required in the organization who can understand the needs of the elderly population in these countries and the differences of the same from the developed ones. The company also needs to increase their operational network by tying up with local investors and linked industries, for which skill development is required, which can help in managing the different actions in different dimensions simultaneously.

The vision of the company has to be broadened to take into account the aspects of establishing facilities in the foreign countries, incorporating the cultural dimensions and standard and pattern of lifestyles, especially post retirement lifestyles in those countries. The regional diversities also need to be included while planning and implementing the proposed strategies (Kastanakis & Balabanis, 2012). The management of Ryman Healthcare needs to be dynamic and liberated, with the capability to design the operational framework of the company in such a way that both their own profit and the social welfare aspects are maximized.

For bringing any change in the organizational framework and the operational structure of the company, it is of utmost importance to incorporate changes in the leadership structure of the company itself. The primary modification, which has to be incorporated in the Ryman Healthcare, in this context, is in the aspect of diversification in the leadership structure of the company itself. The management structure of the company needs to be formed of people of diverse skills and experiences such that the talent pool of the company can be fully utilized (Schoemaker, Krupp & Howland, 2013). The leaders also need to be strategically farsighted and aware of the market dynamics in their industry and the linked arenas to be able to implement the proposed strategies effectively in the unexplored foreign markets. Decision-making has to be appropriate as well as prompt in order to gain competitive edge over the increasing number of rivals in the supply side of the concerned industry. A dynamic and change incorporating leadership in Ryman Healthcare is required for the purpose of long term sustainability and future profitability of the company in the long run (Huffman et al., 2014). To effectively implement the market development strategies, especially in countries like India, China and others, it is necessary for the company to have knowledge about the overall and work cultural traits, as the same differs considerably from that prevailing in the economies and societies where it already operates. This can be brought into action by employing local personnel of the potential countries in different arenas and also involving local investors, who have better knowledge about the local market trends.

Conclusion

From the above discussion, it can be asserted that Ryman Healthcare has over the years emerged as one of the leading service providers in the retirement village and rest home industry, in the global framework, with significant operational base in New Zealand and increasing operations in Australia. The company has considerable prospects with the global demand of their services increasing, especially in the developed countries, which have been experiencing consistently increasing old age population in these countries. The demand for the services has also been increasing in the developing countries due to the change in income and lifestyle pattern. On the other hand, the lucrative industry is also attracting many supply side providers, which increases the competition for the company. Keeping this into consideration, the most prospective strategy of the company is to explore the new markets in other countries as well as to diversify their services for the existing and new clientele. To do the same, the company needs to implement structural and operational changes in their mode of working as well as in their leadership structure, to incorporate the traits and cultures as well as the life style and income patterns of the relevant population of the new countries where the country can venture in the near future.

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