Question

Conduct a Summary Service Area Structural Analysis for Ku Medical Center

Identify key competitors and their organizational strengths and weaknesses

Identify strategic groups of competitors and describe what actions that organizations in each group may take based on grouping, strengths, and weaknesses.

Answer 1

ans....
1. Threat of new entrants – The threat of new entrants is there but not so strong as the gynecology department of John Hopkins Hospital is already a number one player in Maryland and one of the top ten players in the country. Thus, being an established competitor, it has certain cost advantages which acts as a potential barrier to entry.
2. Intensity of rivalry among existing hospitals – Intensity of rivalry is there but not very strong. Main competitors are Holy Cross Hospital and Family Childbirth and Children’s Center at Mercy. There is an absence of numerous competitors.
3. Threat of substitute products and services – This is low as there is no substitute for reproductive science.
4. Bargaining power of customers – This is low as switching costs are irrelevant in this case.
5. Bargaining power of suppliers – This is medium as the hospital can source from several suppliers but the product (medicines, medical devices etc) being supplied are vital for the hospital’s business.
The key competitors are Holy Cross Hospital and Family Childbirth and Children’s Center at Mercy. The strength of Holy Cross Hospital is its coverage of variety health issues related to women. It focuses on excellence through innovation. In terms of its weakness its research is not as strong as John Hopkins. The same applies to Holy Cross Hospital and Family Childbirth and Children’s Center at Mercy.
Strategic group of competitors, in this case, will include Holy Cross Hospital, Family Childbirth and Children’s Center at Mercy and Johns Hopkins Hospital in one strategic group as they are in the same service category and make similar strategic decisions. Their core strategies are similar. These players do not compete with other health care providers outside the group.