Taiwan Healthcare

Suppliers want steady orders and prompt payment, they also want to feel valued by the company that they supply.

Regardless we now know that health care is classified as a major business. We have for profit organizations, not for profit organizations and government organizations to supply the increasing demand for health care products and services. Each organization will be a product of their funding that they have or receive. The decision will be made from several different levels and areas within the organization, and they all have to report back to the stakeholders.

In 2004, $91.1 billion or 70% of total health spending was by the public sector. Private sector spending totalled $39.2 billion in 2004, or 30%.

Suppliers: Costco has a famous business model, in which it maintains a good relationship with suppliers, because Costco is buying huge quantities, and general they are getting lower or similar price on same products compared to other buyers. So they get the price no higher than other retailers, and they still keep the price down to save for people. Sometimes, the vendor would show them the cost of goods, and let them decide how much the buy price would be to benefit both and have the fair profit, as indicated by their merchandise manager Claude Gravel (Haney, 2011).

Any retailers without loyalty buyers will quickly fail. Therefore, attracting more potential customers, acquiring more new customers, and maintain more loyal customers will help a company success in the high competing industry. Also, if retailers can get the suppliers with lower price or better quality product, the more likely a retailer could win in the industry. Since there are only limited number of suppliers in the industry and the merchant they supply account for a larger part of the retailer’s sales. All of the retailers are competing for the

There are various sides of healthcare: business, health, and wellness. (Dayaranta, 2013) believed that healthcare is incompetent to function like other competitive industries because of its unique business patterns. However, with constant academic research, healthcare has the potential to act a in a manner of other industries (Dayaranta, 2013). One advantage of thinking of healthcare as an industry is the basic accounting equation: assets + liability = owner’s equity. With that said, using this equation helps lawmakers and economists figure out how to reduce costs. Just like many other businesses, when there is an input, there is an output in the healthcare industry. When it comes to providing insurance to consumers, Dayaranta (2013) thought

Industry Rivalry: Intense (high). As there is low entry barriers in the industry, it adds more competitors/rivalry.

In the United States, the healthcare system is private. The client has to pay for the health services. The client can either pay for the services out of pocket or they can purchase insurance which may assist them in their time of need.

Suppliers have lower bargaining power, because we have variety options, in other words, we can ask suppliers for a lower price, which reduces the cost of production and extend our profit as a result.

Suppliers in the industry seek buyers who can move a lot of merchandise in a short period of time. The threat of substitution is a big deal in this industry. Most retail stores carry the same types of products with little differentiation. This makes it difficult for companies in this industry to keep customers coming back. This places an emphasis on the need to build a good reputation with customers.

Then you have the payers that will finance the healthcare. Payers include the clients themselves, insurance company’s family of the clients or the government. Lastly you have the government who regulate the agencies, approve or ban medication, medical equipment, and practices from the countries. This plays a role the setting the standards of care in care settings. Sometimes the government is the payer of clients and regulate how much the provider is being reimbursed for

If suppliers are limited, they have a greater opportunity to charge higher prices for raw materials, and they may also pose a threat of forward integration to the industry.  Similarly, if an industry has few buyers, or buyers can cheaply and easily change suppliers, they can make demands for less expensive higher quality products, causing impact to profit (Porter, 2008, p. 83).

The extent of rivalry depends on four factors. The first is the competitive structure which means that rivalry is determined by the number and size distribution of companies in its industry. Each composed of different numbers and sizes. It is comparable to that of a pyramid; there are more fragmented small and medium businesses on the very bottom. Above that are a small number of large companies and at the very top there is a monopoly (Hill & Jones, 2008).

here you access how easy it is for supplier to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of the product or services, their strength and control, the cost switching from one to another, and so on. The fewer of the supplier choice, and the more you need

Suppliers can decide whether to raise prices for orders which can obviously affect a firm's profits. Also, a supplier's reliability could affect production. If orders do not arrive on time finished goods may not be ready for shipping to customers. Suppliers can also change credit terms which may have cash flow issues for a company and they could decide whether or not to allow discounts