Dr. D. N. Dutta inherited his father's Dutta's Laboratory in Delhi in 1953. Till 2001, he owned 3 labs in the National Capital Region (NCR). His ambition was to turn it into a national chain. The numbers increased to 5 i

Dr. D. N. Dutta inherited his father's Dutta's Laboratory in Delhi in 1953. Till 2001, he owned 3 labs in the National Capital Region (NCR). His ambition was to turn it into a national chain. The numbers increased to 5 in 2003 across the country including the acquisition of Platinum Lab in Mumbai. The number is likely to go to 40 within 2-3 years from 18 at present. Infusion of ₹ 26 crore for 26% stake by Pharma Capital in this company has its growth strategy. The Lab with a revenue of ₹ 70 crore is among top three pathological labs in India with Atlantic (₹ 76 crores) and Pacific (₹ 56 crores). Yet its market share is only 2% of ₹ 3,600 crores market. The top 3 firms command only 6% as against 40-45% by their counterparts in the USA. There are about 25,000 to 1,00,000 standalone labs engaged in routine pathological business in India, with no system of mandatory licensing and registration. That is why Dr. D. N. Dutta has not gone for acquisition or joint ventures. He does not find many existing laboratories meeting quality standards. His six labs have been accredited nationally whereon many large hospitals have not thought of accreditation. The College of American pathologists' accreditation of Dutta's Lab would help it to reach clients outside India. In Dutta's Lab the bio-chemistry and blood testing equipments are sanitized every day. The bar coding and automated registration of patients do not allow any identity mix-ups. Even routine tests are conducted with highly sophisticated systems. Technical expertise enables them to carry out 1660 variety of tests. Same day reports are available for samples reaching by 4 PM and by 8 AM next day for samples from 550 collection centers located across the country. Their technicians work round the clock, unlike competitors. Home service for collection and reporting is also available. There is a huge unutilized capacity. Now, it is trying to stop other segments. 20% of its total business comes through its main laboratory which acts as a reference lab for many leading hospitals. New mega labs are being built to encash pre-clinical and multi-centre clinical trials within India and provide post graduate training to the pathologists. Considering the above situation answer the following: In your opinion what could be the biggest weakness in Dr. D. N. Dutta's business strategy?