Question

What are the Porter's five forces analysis when establishing a telehealth app?

Answer 1

Answer

Porter's five forces analysis when establishing a telehealth app is as follow.

1. Bargaining power of supplier ; The bargaining power of suppliers refers to the capability of business which provides data ,IP,materials, etc. to a organization or business further down the network in order to ask for increased compensation to direct competitor. This platform is widely based off the subsidized, and more competitive mobile phone market, the suppliers in this regard have little power to demand higher prices were the telemedicine industry to grow and increase their demand.
2. Bargaining power of buyer; It is the ability of consumer of the business to want ordemand extra features,like lower prices, or switch to a Alternative. Due to the recommended or suggested licensing strategy of this product, so the buyers in this case would be potentially research laboratories and device manufacturers and other regulatory bodies which are looking to do research on the dataset of patient data.No doubt that the licensing of data or the sale would come with public resistance, but if done in a way so that it is identity sensitive this can provide opportunities to  many licensing opportunities. As there are lesser or few alternatives to this system, the power of buyers to switch to alternative platform would be weak
3. Threat of new entrants;. if there is Ease of entrance then it is  characterized by barriers to entry, and ultimately it  encourage more new comers particularly if the industry isnew and has potential for being succesfull. This characterizes the telehealth market. It is, therefore, important to increase the barriers to entry to pursuing potential entrants.
4. Threat of substitutes ;If the company is faced with a high-level threat of substitutes, it loses the control over the price that it can set to sell to customers, since customers can easily switch to its substitutes if the price is set too high. Therefore, it is important to analyze the threat of substitutes given it can affect profitability of the company and the industry.
5. Rivalry amongst existing competitors The current major players in the telehealth market are GlobalMed and InTouch Technologies who together own 22% of the market.However, the industry itself is rapidly growing and hence there is abundant opportunity for entry. In the telehealth industry, the basis of competition is primarily based on product quality, which is determined by factors like product functionality, features, speed and ease of use.

have a good day !