Optimum Physiotherapy analysis

Environmental Analysis of Optimum Physiotherapy
Institutional Affiliations
Optimum Physiotherapy entered the market in 2003 and is section of Totally Plc Group. It
services ten counties with is twenty three clinical outlets which provide physiotherapy services.
The goal is to bolster client fulfillment through the provision of tailored services to its individual
client’s needs which has made them become among the pioneer physio providers in the United
Kingdom to be granted the ISO9001:2008 in 2013 (Optimum, n.d). The organization has a
talented pool of profession physiotherapists, rehabilitation specialists and well serviced couches
to assist clients who are already injured or to prevent the injuries from happening in the first
Micro Environment.
The micro-environment entails the actors which are very near the firm and which effects its
capability to function various entities such as the competitors, the suppliers and the customers.
Key Businesses
Optimum Physiotherapy runs various key business areas. They specialize on injury prevention
as their coaches design the programs for training which help prevent injuries and improve
training. If one gets injured in the garden, during some sporting activity or at work, they offer
physiotherapy. They offer sports massage which serves to complement the client’s training and
recovery. They also offer provide the seminars for the clubs which include injury prevention,
training and nutrition. Their physiotherapy comes in very handy in the restoration of the
operations and motion that might have been impacted with the ailment or the injury. They offer
shockwave physiotherapy which is efficient on the healing modality and is utilized by particularly
qualified sports physician and therapist. Their business also offer Wattbike testing which make
their clients train like cyclists and determine their correct training zones with the use of the latest
Wattbike equipment. The also offer ultrasonograpy to determine if there is a torn ligament and
acupuncture as a managerial approach to inflammation and pain. Pilates and myofascial taping
are also utilized to enhance natural healing of the body.
According to Optimum (n.d) optimum Physiotherapy regards and treat every client the way they
want. It divulges information in a responsible manner and are accountable for the results of their
decisions. They endeavor to build a socially responsible company. The company is committed
to delivering holistic customer services. It is flexible to customer preferences and hence, they
enrich their capability of becoming the best physiotherapy service provider in the region. The
company understands very well that the life time value of the patient in a physiotherapy
business is dependent on the price and the customer retention. Their customer service is based
on the promise that they will treat each customer with respect and dignity as person and never a
condition and their treatment will be effective and up to date as possible. The customer will get
involved in the process and information or questions on diagnosis will be shared to him/her
upon request.
As physio centers are striving to improve and control the quality of care and productivity in
overall, they need assistance from the supplier. The suppliers of Optimum Physio are coming up
with new sales techniques which are designed to foster long-lasting service-oriented affiliation
with some designated main major accounts (Buzzard 2007 p. 44). To attain global relevance,
Optimum Physiotherapy synergizes its business with suppliers by means of strategic positioning
which is meant to bring a sustainable future of being a global provide. Materials to the facilities
are delivered in bulk and kept in a store inventory. Some suppliers in the UK are actually service
providers who maintain their equipment.
The private healthcare industry in United Kingdom has boomed and has registered a continuing
growth since the late 1990s. This is coupled with the fact that medical tourism to UK provides a
reliable source of patients and hence, the company is evolving and aligning itself to this trend.
According to Agostini et al. (2013), the main competitors to Optimum Physiotherapy include the
London Bridge Hospital, Physio, St. Mary’s University, Claren Business Center and Team
Rehab among others.
Financial communities
The financial communities refer to the individuals and the institutions who offer support to the
organization for purposes of expansion. For Optimum Physiotherapy, shareholders fund the
business and, it is worth noting that ordinary people are the majority shareholders in this case
which account for over 60% of total number of listed shareholders.
The company have been successfully run since its inception considering that it has a noticeable
bank of regular clients. The company has remained profitable and has maintained a good
reputation among its shareholders (owners) and the clients too.
External Environment Analysis
PESTEL Analysis
The government of the UK is taking measures to ensure that the deterioration of the economy is
handled using a complex blend of fiscal and monetary policies. The highest earners were taxed
at 50% in a measure targeted at reviving the economy. The UK government has been deemed
to be the most successful in terms of the regulation quality, government efficiency, corruption
control and application of the rule of law (Thelen 2004). The coalition government of 2012
reduced government spending which initiated the renegotiation of large scale contracts. The
The Health Informatics Service showed interests of partnering with the private organizations.
Doctors are being put in charge in accordance with the Health and Social Bill which are the think
tanks of clinicians who provide leadership to CSOs. This implies that the political situation is
relatively stable which favors the Optimum Physiotherapy coupled with the legal framework for
enforcement of contracts and reduced level of corruption. There is no bureaucracy and
interference in the specialized health service industry by the government.
There is the issue of currency devaluation considering that the sterling dropped by a quarter
against the Euro in 2008. The UK has been having a current account deficit since 1990 and this
is worrying as it increases the external debt (Algan et al. 2010). This situation tends to reduce
the profitability of the business as the value of savings reduces. As at November 2017, the
unemployment rate of the UK rested at 4.3% which means that it has improved from the 6.5% it
had in March 2009 due to the economic slowdown. The increasing employment means more
disposable income for the company as people could afford the services. Its inflation rate rose by
3.1% and overriding the market expectations of 3%. The increase is attributed to growing
housing and service sectors. As at 2016, the GDP of UK was estimated at 2.619 trillion US
dollars with its interest rate remaining above the 2% target in 2018. This rate is anticipated to
expand the monetary supply in the system by way of bolstering the bank spending. It is
estimated that the spending on the Health Information Technology may reach 3 billion Euros
which is 12% increase from 2010. This means that the infrastructure quality might stabilize in
the specialized care due to the reduced employment rate but the business cycles could threaten
this trend. There is some efficiency in borrowing which will help expansion of the physio
The working population in the UK accounts for 67% of the total population whereas 17 percent
are under 14 years with 15 percent over 65 years. As the dependency ratio increases, it is very
difficult to maintain the standard of living of the dependent population considering that the
workforce is being strained. They will be handling excess burden in the future. UK boasts of a
robust education system dating back to a hundred years ago (Thelen 2004). The healthcare of
the UK is considered to be the most successful social venture globally due to the fact that public
expenditure on the health services has been always high. Despite the challenge of income
disparity, the level of income in the UK is high. However, the relative inequality has been in the
increase and the government has not met its target in ensuring that the relative poverty is
reduced. There has been an increase in the desire to provide the integrated care which implies
that the integration of the care delivery such as the efficient care scheduling, self-care and co-
ordination if care may be integral. The USA framework of the accountable care is being seen in
the UK as a potential framework but of crucial importance is how individuals would be rewarded
for their contribution to the care of the patient. The current payment-by-result system has to be
adjusted in order to acclimatize to patients being treated in the community.
According to the estimates by the UK government 50 billion Euros was made by broadcasting
and telecommunication networks back in 2006. The number of subscribers of broadband
internet connection has raised dramatically in the UK. It has one of the most advanced
telecommunication infrastructure which features an array of 50 coaxial submarine cable, 8
international switching center, several satellite earth stations, microwave radio relay systems,
buried cables and fiber-optics systems (Morgan & Efron, 2006).
Portals are very easy and solution which doesn’t require a lot of storage and can grant simple
access by the clinicians and the patients themselves. However, there is a growing need to
develop which require data storage for analytical purposes. This is required at the level of the
patient so as to provide monitoring of medication and at a group level for risk classification. This
will allow the targeting of high risk groups for purposes of preventive measures. At the
organizational level, there would be an urgent need to streamline processes and compare
performance of say, Physiotherapy Company whose relevancy can be attributed to the fact that
there are referrals in such primary care. Business Intelligence will become very instrumental as
a higher margin value proposition with other technologies such as telemedicine going
mainstream. These changes will definitely impact on the rate of technological diffusion, value
chain structure, cost and product offering.
The government of the United Kingdom has played a key role in developing the environment
standards of Europe. It promoted the sustainability targets and strategies since 1990 which
encompasses the management structure of the ecology and environmental directives which are
integrated in other activities.
In the Green Information technology agenda which include political imperatives which cover the
management of documents are achieved electronically such as eMedlink and telemedicine.
(Shaw 2010). Outsourcing the IT function has resulted in the variation in the quality of the
systems but there is a move towards cloud computing which is meant to revolutionize the
industry. For instance, the Health Cloud for CSC may harbor the NHS it requirements for a
physiotherapy facility. This inevitably influences the attitudes towards the renewable energy and
climate change, ecological products, waste management, recycling, air and water pollution and
environmental pollution
In accordance to the laws of the UK, the maximum working hours are 48 weekly with 11 hour
rest period daily. However, those who are willing to work beyond this time utilizing the European
Working Time Directive. Legislations such as the Employment Act of 2002 and several other
legislations are against discrimination in any form of age, disability, sexual orientation, sex, race
and religion (Shaw 2010). The national minimum wage has been introduced with very generous
paternity and maternity benefits.
In the context of health, the clinical safety directive and the medical device legislation may serve
to provide some opportunity for consultancy besides impacting on solutions. This will have
impacts on the physiotherapy industry in terms of health safety, employee remuneration, and
consumer protection and discrimination law.
SWOT Analysis
An adequate physiotherapy service which provides which meets the national guidance
and requisite frameworks
It has enhanced discharge planning for complex patients.
Improved customer experience due to the seamless care between outpatient and in
Time availability to educate the customers
Sufficient staffing which allows physiotherapy input when needed and not when there is
a gap.
Discharge fastened by the adequate therapy inputs
Staffing levels doesn’t fully address the desired optimal services
Minimal availability of the physiotherapy to meet the needs of the infants
Sufficient therapy staff may enable the team to become a reliable source of experts for
other units.
Increasing the therapy staff enables the teaching which will facilitate the greater 24 hour
therapy to the infant clients
Technological advances wields efficiency and the power of e-commerce.
Planned future expansion which is done without securing further funding to therapy may
tend to regress and dilute service provision.
Technological advances may lower security
Competiveness Using the Porters Five Force Model
The Porter Five Forces provides a holistic
strategy which takes the strategic decisions
away from just analyzing the current competition.
Optimum Physiotherapy doesn’t just use the
model for the design of strategic plans but also in
exploring the profitability opportunities in the
I. Threat of new entrants
New entrants in the specialized health services brings with it innovative problem solving
techniques which puts immense pressure on the Optimum Therapy by way of provision
of new value propositions to the clients and lower pricing strategies and cost reduction
(Porter 2008). The Optimum Physiotherapy has to cope with all these challenges and
come up with strategies to combat such competitive strategies.
II. Bargaining power of suppliers
Optimum Physiotherapy buys its raw materials from an array of suppliers. Suppliers
which hold some dominance can reduce the profits it can earn in the market. Suppliers
who have a lot of power in the UK healthcare can use this power to command higher
prices for their goods (Karagiannopoulos, Georgopoulos & Nikolopoulos 2005). The
overall impact of elevation of the power of the suppliers is that it reduces the profitability
of the company.
III. Buyer Bargaining Power
The company’s clients are very demanding. They always want the best offering at a
pocket-friendly price (Porter 2008). This ultimately, puts immense pressure on the
Optimum Physiotherapy profit margins ultimately. There is a small customer base which
is very powerful and have high bargaining power for its customers which gives them
some ability to seek discounts and offers.
IV. Threat of substitute services or products
Whenever an emergent service or product meets same needs of the customer in
different manners, the profitability of the industry is at stake (Karagiannopoulos,
Georgopoulos & Nikolopoulos 2005). For instance, Google drives substitute hard drives.
In the physiotherapy, the threat of substitutes is particularly high in case it is offering a
value proposition which is unique from those existing in the market.
V. Rivalry among existing competitors
Optimum Physiotherapy operates in a highly competitive specialized health service
industry. The intense rivalry among the existing players named previously has a general
effect of reduction in prices and hence, effects its long-term profitability (Porter 2008).
I. Inadequate marketing skills
Marketing is very instrumental for the profitability and growth of the physical therapy
business. The marketing techniques of the company serves enhance the acquisition of
new clients and the retention of the existing one (Sheppard 1997). There are several
resources which Optimum Physiotherapy can utilize but it is imperative that the
management is determined to learn these skills.
II. Inadequate business skills
It is undeniable that the therapist in the company are well-trained and seasoned but this
is not the only precursor to success in this industry. Entrepreneurs maintain an excellent
business acumen so that the physio business survive and successfully grow.
III. Time Management
The owner of Optimum Physiotherapy is tasked with striking a balance between taking
care of the patients and working on the growth of their business. The management of
physical therapy can be very multi-faceted and needs focus and clarity so that one is not
pushed in some path without any significant achievement (Sheppard, 1997). The
business should block some time for attending to growth in terms of development of
marketing strategies and some other time to attend to the patients with no distraction.
The key is to prioritize.
IV. Hiring physical therapist who are reliable and competent
Optimum Physiotherapy is a growing company and hence, it faces challenges with the
recruitment owing to the fact that they would need training. A competitive pay coupled
with a benefits package can serve to address this issue, but overall, a good working
environment whereby the employee would feel very empowered and valued has the
potential of employee retention.
Conclusion and
The Optimum Physiotherapy is immersed in a UK environment which provides it with challenges
and opportunities in equal measure. This has been adequately captured under the SWOT and
PESTEL analyses. The issues which mars the industry also comes with its possibility of turning
them or addressing them. Consequently, with the analysis of the Porter Five force model for the
company, I have gained a satisfactory picture of what impacts the profitability of the organization
and came up with the following recommendations:
The Optimum Physiotherapy can tackle the threats of new entrants by
implementing various strategies. This include enhancement of its capacity and
spending money on development and research so as to define standards and
hence, cuts the window of new entrants making abnormal profits and hence
warding off new players (Grundy 2006). The company should also harness the
economies of scale and innovating new services and products which will bring
new customers.
The Optimum Physiotherapy can handle such high power using a variety of
strategies. They can alternatively ally with dedicated suppliers whose business
wholly depends on the company as Nike allied with 3
party manufacturers who
would have less bargaining power (Grundy 2006). The company can also
experiment on different product designs and materials so that in case prices
move up, the can shift to another. Finally, they can handle multiple supply chains.
In response to the high bargaining power, the Optimum Physiotherapy. The
company should invest in new products which lower the defection of existing
customers to competitors. Customers usually look for discounts in the already
established products and hence, new innovative products will lower their
bargaining power (Porter 2008). The company should also strive to build a strong
customer base which will provide the company with the chance to streamline its
process of production and sales together with reducing the power of the buyer to
Optimum Physiotherapy can tackle the threat of substitute services or products
by incrementing the cost of the customers to switch, comprehending the critical
need of the customer instead of what they are just purchasing and it is very
imperative to be service oriented instead of product orientation.
The company should institute some strategies meant to tackle the existing rivalry
among competitors in this physiotherapy industry. This includes collaboration
with competitors for purposes of driving up the market size instead of fighting for
a small market size (Porter 2008). They develop the scale and sustainable
differentiation so that they can compete better.
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Karagiannopoulos, G.D., Georgopoulos, N. and Nikolopoulos, K., 2005. Fathoming Porter's five
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Optimum. (Online). All about US. Available at http://www.optimum-hcs.com/

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