One of Australia’s largest and oldest not-for-profit providers of community nursing services was facing two serious challenges to its ongoing viability. A significant part of its annual revenue was subject to a highly competitive tendering process, and there had been a series of mergers and acquisitions among competitor organisations, reflecting the national trend towards consolidation of providers. The organisation felt it was losing ground in a tough marketplace.
Working closely with the Board, we developed options for the organisation to diversify revenue and achieve growth. First, an in-depth analysis of existing customers’ needs uncovered potential new revenue opportunities. We evaluated these opportunities in terms of consumer receptiveness, their potential market size, the costs involved in developing the opportunity and the key risks and competitors involved. Based on primary and secondary research along with detailed financial analysis, we developed concise ‘go – no go’ recommendations for the Board on the range of possible options.
The Board agreed on a forward strategy. Based on our recommendations, the organisation went on to acquire another provider and diversify its revenue stream by launching a new suite of services. The organisation has consolidated its market position and strengthened its sustainability over the long term.