Felder Hospital Case Study

Competition in the industry: this force mentions the importance of competitors and the ability that the business is threaten by them. Based on the scenario, Felder hospital’s substantial growth over the years has placed it in the position of having many competitors in the surrounding area. If there are more competitors and they are able to provide the same services, such as oncology, orthopedic, cardiovascular, Felder’s power to gain market share is weak. On the contrary, Felder will have more patients coming for services if there are low numbers of competitors. The competitors in this industry are very high. Therefore, Felder must improve its services’ quality and costs to be able to attract many patients to the hospital for cares (Kroenke …show more content…
If Felder is operated in the area with fewer competitors, the business will thrive (Kroenke & Boyle, 2017, p. 85). Actually, the threat of new entrants in the industry is not easy and low because the amount of capital needed to invest is large and the government controls the industry. Therefore, the threat may come from the new services that are added to the existing hospitals.
Power of suppliers: this force states that Felder’s services’ costs and prices are depended on the numbers of suppliers that are available. The forces addresses that the fewer number of suppliers, the easier for them to increase the price of goods and services. Felder’s business is also affected by the costs of switching from one supplier to another (Kroenke & Boyle, 2017, p. …show more content…
According to Porter, Felder hospital must select one of the generic strategies to be able to success in the long future. Otherwise, the hospital will not achieve any strategy. Felder hospital must evaluate its resources and focus on an appropriate strategy to implement to reach the goal. For example, if Felder chooses to provide high quality of cares, Felder cannot focus on becoming a cost leader because it will impair the quality (Kroenke & Boyle, 2017, p.