Health Care Executive Summary
The U.S. healthcare system has become more complex in effect of the Patient Protection and Affordable Care Act of 2010 (Reed, 2013). Consumers are confused over the sheer inefficiency of medical services despite rising costs. Healthcare providers, on the other hand, are either going bankrupt or undergoing tremendous changes that seem too overwhelming to adapt. This is why it is imperative for healthcare organizations to conduct a strategic analysis of competitiveness on a regular basis to determine its position in the local and global market.
According to Arlen Meyers (2013), there are five reasons why organizations need a competitor analysis. First, there is an immediate threat of substitute products or services, and threats of established rivals as well as newcomers. The fourth and fifth factors are the bargaining power of suppliers and that of the customers. Based on Porter’s five forces, companies who create value will remain strong in the game. To translate this in healthcare, providers should focus on giving value for patient’s money and not just simply lowering the costs. The competition should also be centered on medical conditions …show more content…
Objectives and assumptions are the driving factors of the competitor’s business, while the strategies and capabilities are what the other companies are currently doing. In general, a competitor analysis takes into consideration the financial aspect of the organization. Thus, one would need to obtain annual shareholder reports, 10k reports, interviews with analysts, management statements, and press releases. It would be helpful to know the competitor’s hiring activity, R&D projects, capital investments, promotional campaigns, strategic partnerships, and mergers and acquisitions (Internet Center for Management and Business Administration,
According to Arlen Meyers (2013), there are five reasons why organizations need a competitor analysis. First, there is an immediate threat of substitute products or services, and threats of established rivals as well as newcomers. The fourth and fifth factors are the bargaining power of suppliers and that of the customers. Based on Porter’s five forces, companies who create value will remain strong in the game. To translate this in healthcare, providers should focus on giving value for patient’s money and not just simply lowering the costs. The competition should also be centered on medical conditions …show more content…
Objectives and assumptions are the driving factors of the competitor’s business, while the strategies and capabilities are what the other companies are currently doing. In general, a competitor analysis takes into consideration the financial aspect of the organization. Thus, one would need to obtain annual shareholder reports, 10k reports, interviews with analysts, management statements, and press releases. It would be helpful to know the competitor’s hiring activity, R&D projects, capital investments, promotional campaigns, strategic partnerships, and mergers and acquisitions (Internet Center for Management and Business Administration,