AyurVAID: Grandma's Remedies or Blue Ocean Strategy

AyurVAID is a chain of Ayurveda (traditional Hindu medicine) hospitals founded by Rajiv Vasudevan, who moved to entrepreneurship after 16 years in the corporate sector and identified Ayurveda’s potential for root-cause diagnosis. AyurVAID provides Ayurveda-based healthcare to treat non-communicable diseases and chronic diseases, which together comprise two-thirds of the Indian healthcare market. Ayurveda’s system of root-cause diagnosis and subsequent disease management results in no side effects, but most Ayurveda companies are content to operate in the wellness sector and to provide Ayurvedic formulations in the over-the-counter consumer market. AyurVAID hospitals are positioned differently, catering to people with lifestyle diseases and offering long-term solutions to many chronic diseases. Over a period of 10 years, AyurvVAID’s approach has led to rapid growth for the hospitals; however, the founder and chief executive officer wants to identify the most appropriate strategy for AyurVAID. Should it focus on strengthening its position as a multi-specialty hospital, or should it explore specializing in India’s large and growing market for the treatment of diabetes?

This case is intended for an MBA-level class in entrepreneurship, but is also suitable for classes in strategy development and execution, healthcare management and international business. By illustrating the challenges facing a small company attempting to grow and differentiate itself, this case addresses the following learning objectives: <ul><li>To identify opportunities in established markets.</li><li>To create sustainable differentiation by extending a crowded market to unexplored areas that offer scope for building value at low cost.</li><li>To identify both the environmental issues affecting the growth of a late entrant and strategies for changing stakeholders’ perceptions in an effort to achieve sustainable growth.</li><ul>

• Opportunities
• Chronic diseases
• strategy