The Medicare industry has a high barrier to entry in the form of numerous regulations and the capital required is also high. In conclusion, this makes it difficult for new companies to enter. Consumers prefer big companies as the risk is lower.
3. Competition from producers of substitute products: There is no known good substitute for Medicare Advantage plans and the threat from producers of substitute products is very low.
4. Supplier bargaining power: For the Medicare Advantage plans the main suppliers are hospitals, physicians and other ancillary health care providers. They have the power to decide whether to join the specific health care plans or not. They have the power to negotiate their own contract. Since these various health care providers
3. Competition from producers of substitute products: There is no known good substitute for Medicare Advantage plans and the threat from producers of substitute products is very low.
4. Supplier bargaining power: For the Medicare Advantage plans the main suppliers are hospitals, physicians and other ancillary health care providers. They have the power to decide whether to join the specific health care plans or not. They have the power to negotiate their own contract. Since these various health care providers