Organizations’ long-term health and viability are dependent on many factors, including the structure of the market the organization is competing in—and healthcare is no exception. Understanding the competitive forces in the industry will help in planning for the future. As discussed in this course, the more competition an organization faces, the more economic risk there is; and this makes long-term planning difficult.

Professor Michael Porter, of the Harvard Business School, has prepared a grid of the five forces of competitive advantage.

Based on a healthcare organization you are familiar with, prepare a report on the competitive forces affecting the organization using Porter’s five forces as your guideline.

Length: 10-15 pages, not including title and reference pages

Answer preview

The porters five forces of competition evaluation refer to a model that helps in analyzing the level of competition in a specific industry. It is useful knowledge, especially when starting a new venture. Besides, it is essential in analyzing the level of competitiveness so that a firm can make strategic plans. Through this evaluation, one knows a firms positioning in the market. This paper offers an analysis of Kaiser Permanente, which is a big player in the healthcare industry. It is one of the most renowned healthcare provider organizations in the USA. The company has established itself in the healthcare market that is mired by inconsistencies and competition. Most firms in the healthcare field however have ability to control market through prices and products offered.  A Porter’s analysis of the firm will assess its threat of new entrants, suppliers and buyers’ bargaining power, the threat from substitute products, and the rivalry from existing firms. KP operates in a highly competitive healthcare market with stiff competition from other healthcare organizations such as Mayo Clinic and Cleveland Clinic.

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