20 Sep Answer and respond to peer discussion post:Michael
Answer and respond to peer discussion post:Michael Porter suggested that the intensity of competition in an industry is determined by its underlying economic structure, and that the industry structure is shaped by five basic competitive forces:The threat of new entrants into the industry.The bargaining power of suppliers to the industry.The threat of substitute products or services.The bargaining power of customers.The maneuvering for position forces.Choose ONE of the competitive forces above, and explain how you would research, assess, and analyze it. Respond to classmates with the same competitive force choice by comparing, comparing, and expanding their approach. Respond to classmates with a different competitive force choice by comparing and expanding their approach and offering useful insight. As required for all discussion questions, your response(s) must be referenced and supported with peer-review journals and quality academic materials.Respond to Post:The healthcare industry is interesting in how some health care organizations compete with others. The US healthcare industry has little competition in many of its markets this is specifically true in communities with large healthcare organizations. Two of the ways success of most healthcare organizations is measured is via patient satisfaction and patient outcomes. Over the past years there have been proliferations of Health Insurers and changes to government policies to how patients are insured. This has resulted in an expansion in coverage for millions of Americans, thus increasing the customer base for healthcare organizations. This expansion has caused a significant shift in the bargaining power of clients. Specifically, these patients aren’t limited to emergency room visits due to illness or injury and can now seek more care for other issues. The bargaining power of patients has led to a decrease in premiums in areas with high concentrations of health insurance competitors. This can be analyzed through reviews of organization portfolios specifically addressing the relationships between the suppliers and customer. “Portfolios provide a useful unit of analysis for research because a firm must also have a vision for how to manage its portfolio in support of value creation and appropriation, in addition to understanding how individual relationships provide access to resources and help the organization adapt to the changing environment.”(Schwieterman(2017). Understanding how expansions of access to care drives cost down is important. Similar to the mass production in many other industries. Mass access allows for customers to negotiate costs better. This is largely due to the similarity of practices that are standardized in the healthcare industry. “The industry’s products are standardized or undifferentiated. If buyers believe they can always find an equivalent product, they tend to play one vendor against another.”(Porter, 2008). This has more of an effect on certain specialties such as optometry, dermatology and some specialty services. As a result it is important to assess. Considering the variation in how some specialties costs and customer interactions vary, it is important to assess some services individually and analyze the data gathered.Resources:Schwieterman, M. A., Goldsby, T. J., & Knemeyer, A. M. (2017). Advocating customer and supplier portfolios in supply chain research: a systematic literature review and research agenda. Transportation Journal, 56(4), 429-476.Porter, M. E. (2008). On competition. Harvard Business Press.