Marketing Analysis using Porter's Five Forces on Primary Care Physician's Present and Future

Market Assessment
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Analysis of the Market using Porter’s Five Forces
Element

Analysis

Competitive Rivalry

The competitive rivalry is very low. The county has a physician to patient ratio of 1:3461 which is 4 times higher than needed.
The presence of another hospital is a mile radius does not pose a strong competition because the market is underserved.

Threat of new Entrants

The threat of new entrants is moderately high. The market is underserved and there is very low barrier of entry. It should be expected that in the near future hospitals may come up in the area to meet national/state average physician-to-patient ratio.

Threat of substitutes

The threat of substitutes is moderately low. There is only one other existing hospital.

Bargaining power of buyers

The bargaining power of the buyers(patients) is very low because there are very few health facilities in the region. There is only one existing facility in the region.

Bargaining power of suppliers

The bargaining power of suppliers is low because they serve very few facilities.

Assumptions About Present & Future Directly Related to PCPs
1 All PCPs will have a high workload. The physician-to-patient ratio shows that the demand of their services will be very high.
2 More PCPs will be needed to reduce the workload of the primary care providers and improve the quality of care to the patients and satisfaction rates (Zhang, et al. 2020).
3 PCPs will demand increase in wages – this is likely because of their workload because they will be serving a market with very high physician-to-patient ratio.
Assumptions About Market as a Whole/ Will it be successful
1 The market will attract new service providers to serve the highly underserve...