Question

The owners, new in their role as healthcare entrepreneurs, wish to gain a better understanding of competition in the market and enlist you to prepare a associated assessment. Your task is to conduct the assessment using Porter's Five Forces Model. In doing so, consult a variety of information sources (e.g., telephone directories, the Internet, industry databases), your own firsthand knowledge of the marketplace, and other relevant sources in an effort to populate Porter's Five Forces framework.

deliver real-world value, you are required to explicitly identify the relevant forces in the market (e.g., existing competitors/rivals must be listed by their specific brand name, substitutes must be explicitly named.

Provide preparation and plan using Porters Five Forces Framework to gain a better understanding of competition in the market of dermatology. Provide firsthand knowledge and consult sources of the marketplace.

Answer 1

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Answer:

Porter’s 5 Forces Analysis for Urgent Care Center:

· The threat of new entrants: Urgent care center works on specialized knowledge of physicians. There is a variety of availability of physicians in the region and hence coming up with a new urgent care center will not be much difficult. However, hiring physicians and health care providers with substantive experience may be a bit difficult. So, the threat of new entrants is medium.

· Threat from substitutes: The substitutes, in this case, are hospitals, health care providers, managed cares, etc. There is a high chance of customers switching to substitutes based on their previous treatment experience, word of mouth and perception of quality care given by any substitute. So the threat from substitutes is quite high.

· Buyer’s bargaining power: As the options available to the buyer or patient are quite high and the switching cost can be minimal (as most of the providers of the same league, may charge similar), the buyer’s bargaining power is quite strong.

· Supplier’s bargaining power: As there are various physicians, health care staff, and providers available in the market, the bargaining power of suppliers can be considered weak.

· Industry rivalry: Industry rivalry will not be that string as every institution will have unique specializations and delivery care associated with it. Every competitor will have a unique value proposition, so industry rivalry will not be quite stringent.