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Porter's Five Forces Model For Healthcare

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When you apply Porter’s Five Forces model to the healthcare niche industry for the developmentally delayed and analyze for competitive advantage, the competition is currently not as strong among existing organizations due to a smaller concentration of group homes and adult respite care facilities. Due to the limited competition, residents do not move from one group home to another very often so family or the placement agency will consider all factors such as pricing, employee qualifications, service quality, and the quality of care that patients receive by the staff (Lester & Parnell, 2006). The threat of new entrants into the market is high as it is thought that the industry will grow as more people gain access to medical insurance (Residential Intellectual Disability Facilities in the US: Market Research Report, n.d.). This threat can sometimes come in the form of other group home that are privately owned and operated by multinational corporations that are lured to the United States by the ever expanding health care industry and group homes could be part of a diverse portfolio of healthcare services (Lethbridge, 2011). Other threats could come …show more content…
(2011). Understanding multinational companies in public health systems, using a competitive advantage framework. Globalization & Health, 7(1), 19-28. doi:10.1186/1744-8603-7-19

Residential Intellectual Disability Facilities in the US: Market Research Report. (n.d.). Retrieved March 26, 2017, from https://www.ibisworld.com/industry/default.aspx?indid=1596

Edelstein, S., Gottlich, V., Siemon. D., & Vignery B. (2012). Housing Rights of Group Home and Nursing Home Residents. Retrieved March 26, 2017, fromhttp://www.americanbar.org/content/dam/aba/administrative/law_aging/2012_aging_arth4830_hsngrghts_tb.authcheckdam.pdf
Lester, D., Parnell, J. (2006). Organizational Theory. Decision making, power, and politics. Retrieved from

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