Monday, June 21, 2010

How does Porter's 5 Forces Model apply to the Healthcare Industry?

Humana, healthcare, health insurance, healthcare providers,How does Porter's 5 Forces Model apply to the Healthcare Industry?
I think the forces are: barriers of entry, rivalry among competitors, power of suppliers, power of buyers, and availability of substitutes. For 1. patents on previous medicine would drive up costs, 2. this leads to many similar products which lowers prices, 3. suppliers control prices if you are a manufacturing firm of medicine, 4. buyers can only afford so much, so pricing is important, 5. generic products are readily available.

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