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Company Overview◦ History, what it does, recent acquisitions
Industry Analysis◦ Key competitors, implied strategies, opportunities and
challenges in the market (use 5 forces) Corporate Strategy
◦ Internal capabilities, where it adds value across business ◦ Where and how they compete◦ Implied and stated strategies
Final Analysis◦ Will the company succeed or fail?◦ Is its strategy in line with market opportunity?◦ How has Davita’s strategy changed across time?
Outline
Previous Name: Davita Inc (incorporated on April 4, 1994) until Nov 2, 2012
Dialysis service: 1,809 Centers in 43 states, 142,000 patients (12/31/2011); service 900 hospitals and related laboratory services; 11 outpatient dialysis centers in 3 foreign countries
# of employees (2011): 41,000
Company Overview
Outline:• Main lines of business• Background/history• Growth pattern• Company size, etc
Operating Revenue (2011): $6,982,214 th USD P/L for period (2011): 478,336 th USD Total Assets (2011): 8,892,172 th USD
Company PerformanceOutline:• Margin, Revenue, and
Stock Performance • Growth of company in
terms of assets, employees, facilities, maybe break down organic vs inorganic growth
Operating Revenue (2011): $6,982,214 th USD P/L for period (2011): 478,336 th USD Total Assets (2011): 8,892,172 th USD Market Cap (Jan 31, 2013): 11,276 mil USD
Company PerformanceOutline:• Might need 2nd slide for
company performance
January 2013: acquired 9 dialysis centers from Fresenius Medical Care (FMC)
November 1, 2012: merger with Healthcare Partners holdings, LLC
January 2012: Acquired controlling interest in NephroLife
September 2, 2011: Acquired
Recent AcquisitionsOutline:• Create categories for
acquisitions• Provide insight into
reason for acquisitions – will evaluate success of acquisitions in last section
Size of market, growth of market – us CAGR◦ National vs World opportunity.
Drivers of growth◦ ie, demographics, lifestyle, disease trends
Challenges facing the industry ◦ – in home dialysis and declining reimbursements?
Industry Analysis
Key Competitors◦ Implied strategies of competitors (do they bring different value to the market, are
some better at contracting vs operations?◦ Market share, brand and recognition, customer or consumer report ranking◦ Consider creating table of competitor and key attributes, ie where they compete
Industry Analysis
Five Forces
Industry Analysis
RIVALRY
Buyers powerx
Suppliers power
•x
Barriers to entry
•x
Threat of substitutes
•x
Internal capabilities, key resources Where it adds value across business Where and how they compete Implied and stated strategies How have acquisitions faired This might be 2-3 slides long – appropriate to use SWOT here Map strategy in generic strategies strategy box
See link below for DaVita justification for Health Partners Merger◦ http://www.faqs.org/sec-filings/120521/DAVITA-INC_8-K_FORM2/d356822dex992.htm
Corporate Strategy
x
◦ x
SWOT AnalysisIN
TER
NA
L A
NA
LYSIS
EX
TER
NA
L AN
ALY
SIS
•X
STRENGHTS
•X
THREATS
•X
WEAKNESSES
•X
OPPORTUNITIES
SWOT
S O
W T
Tie strategies to company performance – market cap, and or stock performance, PE ratio.
Corporate Strategy
◦ Will the company succeed or fail?◦ Are internal capabilities aligned with strategies? ◦ Is its strategy in line with market opportunity?◦ How has Davita’s strategy changed across time?◦ Tie strategies to changes in stock performance?◦ Lesson’s learned?
Final Analysis
◦ DaVita outperformans Dow, S&P, and IHF ETF ◦ U.S. Healthcare Providers ETF, strong representation of
hospitals as well as healthplans. Includes 4% DaVita
Final Analysis
◦ DaVita outperformans Dow, S&P, and IHF ETF ◦ U.S. Healthcare Providers ETF, strong representation of
hospitals as well as healthplans. Includes 4% DaVita
Final Analysis
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