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Using Porter's Five Forces, answer (and discuss with your peers) the question, "Is healthcare an attractive industry?" Porter's Five Forces model was used in many different industries.The five forces are threat of new entrants, threat of substitute products or services, bargaining power of customers (buyers), bargaining power of suppliers, intensity of competitive rivalry. This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organisation’s current competitive position, and the strength of a position that an organisation may…show more content…
Retrieved from:http://www.medicalpracticeinsider.com/blog/competitive-analysis [Accessed: 25 Mar 2014]. Hi Jingjing: Thanks for sharing your discussion with me and I like it. Your discussion is well-organized and reasonable. We all know that, in Porter’s model, intensity is a function of the threat of new entrants to the market, the level of rivalry among existing organizations, the threat of substitute products and services, the bargaining power of buyers (customers), and the bargaining power of suppliers.The strength and impact of these five forces must be carefully monitored and assessed to determine the viability of the service category today and may be used to assess the changes likely to occur in the future. (Ginter and Duncan et al., 2013). You stated that healthcare services were not the easily to be substituted.I totally agree with that point. Healthcare service is a kind of special service which includes technologies, equipment and professional skills. Obviously,to be a professional medical staff is not easy. References: Ginter, P. M., Duncan, W. J. and Swayne, L. E. 2013. Strategic management of health care organizations. Hi Qian: I totally agree with your points which you stated in your post.What’s more, I am very interested in the bargaining power of buyers. An assessment of how easy it is for buyers to drive prices down. This is driven by the: number of buyers in the market; importance of each individual buyer to the organization; and cost to

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