The document analyzes the healthcare industry using Porter's Five Forces framework. It finds that the threat of new entrants is low due to regulatory barriers and capital requirements to establish new hospitals. The bargaining power of suppliers is high given suppliers' specialized products and services, while the bargaining power of buyers is low as costs are fixed and consumers have limited ability to negotiate. Competitive rivalry in the industry is high as there are few prestigious hospitals providing specialized treatments, while most others offer similar standard care. Threat of substitutes is low as conventional treatment remains the primary option for most, though natural remedies are an alternative when conventional care is unavailable or unaffordable.
The document analyzes the healthcare industry using Porter's Five Forces framework. It finds that the threat of new entrants is low due to regulatory barriers and capital requirements to establish new hospitals. The bargaining power of suppliers is high given suppliers' specialized products and services, while the bargaining power of buyers is low as costs are fixed and consumers have limited ability to negotiate. Competitive rivalry in the industry is high as there are few prestigious hospitals providing specialized treatments, while most others offer similar standard care. Threat of substitutes is low as conventional treatment remains the primary option for most, though natural remedies are an alternative when conventional care is unavailable or unaffordable.
The document analyzes the healthcare industry using Porter's Five Forces framework. It finds that the threat of new entrants is low due to regulatory barriers and capital requirements to establish new hospitals. The bargaining power of suppliers is high given suppliers' specialized products and services, while the bargaining power of buyers is low as costs are fixed and consumers have limited ability to negotiate. Competitive rivalry in the industry is high as there are few prestigious hospitals providing specialized treatments, while most others offer similar standard care. Threat of substitutes is low as conventional treatment remains the primary option for most, though natural remedies are an alternative when conventional care is unavailable or unaffordable.
(LOW) the government because it is in the position of
planning and carrying out the requirements for medical centers to be accredited, as well as developing and authorizing state quality requirements and medical guidelines. (LOW)Due to the necessity for adequate funding and the necessary permits to operate the hospital, the conditions for setting up a hospital are challenging to get. (LOW)Employees in this sector must have distinguishable skills because they are responsible for providing consumers with patient services and medical care, which calls for specialized expertise.
Power of supplier Competitive Rivalry Power of Buyer
(LOW) The majority of medical (HIGH) Only a few prestigious (HIGH) The provider has a goods and services have fixed hospitals provide special negotiating advantage over its costs because they are non- treatments; the majority of customers because of the rarity negotiable due to government hospitals provide the same of the good or service it offers, approval, resulting in the medical care. such as certain medicines and consumer incurring the agreed- (HIGH) According to the most services that are specialized. upon cost. recent Department of Health (HIGH) The healthcare sector (LOW) Patients' limited ability to figures, there were 960 private has significant purchasing negotiate results from the hospitals and 476 government power due to its dependence on dependence of their choices on hospitals in the nation as of suppliers' goods and services. the counsel of physicians and October 2017. other medical experts
Threat of Substitute
(LOW) Aside from conventional treatments, patients can
also try natural therapies to alleviate discomfort. according to Medline Plus, prescription medications. (LOW) When there is no close hospital, individuals, mainly from the provinces and regions, may turn to a non-medical therapist or healer. (LOW) Hospital care is occasionally replaced by personal caregivers when hospitals are overflowing with patients in need.