The key reason why competition and rivalry is high in the health care industry is due to countless options of available health care organizations. Consumers have the opportunity to choose from a wide range of providers within their local area forcing the facilities to compete for business. Along with competing with current establishment they must also prepare for any new facilities that will enter the market and increase the intensity of the competition. This causing an on- going battle to earn the business of the consumers. In my city, there are 9 Chiropractic offices fighting to gain business from the same population. If the numbers were smaller the competition would be less but it’s extremely complex to compete for consumers with multiple organizations offering identical services.
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Having knowledge of the various characteristics that triggers competition or poses a threat is valuable to health care organizations as it allows them to put reevaluate their organization performance. If this model is not utilized it can cause some catastrophic results for organization if they are ill prepared to compete against other organizations. The local hospital needs to employ this model to asses why more severe trauma cases are referred to other hospitals. Even though this hospital has an emergency room they are limited to the type of services they can offer. Although there are a limited number of dermatologist in the area they too can benefit for the Porter Model so they can be prepared when new practice opens up. Both of these organization can benefit for this model to (1) minimize losing patients to the competitor and (2) prepare for any new organization that may affects their current
Having knowledge of the various characteristics that triggers competition or poses a threat is valuable to health care organizations as it allows them to put reevaluate their organization performance. If this model is not utilized it can cause some catastrophic results for organization if they are ill prepared to compete against other organizations. The local hospital needs to employ this model to asses why more severe trauma cases are referred to other hospitals. Even though this hospital has an emergency room they are limited to the type of services they can offer. Although there are a limited number of dermatologist in the area they too can benefit for the Porter Model so they can be prepared when new practice opens up. Both of these organization can benefit for this model to (1) minimize losing patients to the competitor and (2) prepare for any new organization that may affects their current