Orpea’s European-Based Nursing Facilities: Expanding to China
(8 pages of text)
Founded in 1989, Orpea Group (Orpea) was a French nursing care company that had successfully expanded into 10 European countries with a network of about 700 facilities. In early 2016, Orpea opened its first establishment in Asia in the Chinese city of Nanjing. Seeing an increased demand for elderly care in China, the Nanjing government encouraged the company. However, Orpea was facing several challenges, including cultural and legal differences between China and Europe, as well as competition with local companies. Orpea needed to determine how best to test the company’s Nanjing facility in the Chinese market and whether or not to pursue further expansion in China.
The case can be used in an undergraduate- or graduate-level course on strategy or international business, illustrating a firm’s global expansion agenda in the context of the health care industry. It can also be used in a health care management course to illustrate economic logistics in the elderly nursing care industry. After working through the case and assignment questions, students will be able to do the following:
- Understand the business logic of the nursing care facility industry.
- Discuss the advantages and disadvantages of different entry modes through which a nursing care company expands internationally.
- Understand how competitive advantages in the nursing care industry can be leveraged in a global setting.
- Understand the importance and challenges of local adaptation in the nursing care industry when tapping into a foreign market.
Health Care Services
France; China, Large, 2016
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