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Strategic Planning - Assignment Example

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These are competitors of an organization who already exist; the health care agency normally competes with them on a daily basis. An immediate competitor operates in the same market, and they offer the same…
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Strategic Planning
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Download file to see previous pages It is based on this knowledge that a health care organization may decide on the best approach to use, in competing with their competitors. Another type of competitor identified by Moseley are potential competitors.
These are companies that are operating in other industries, but they are showing a high likelihood of wanting to invest in the health care industry. These are always referred to as new entrants (Zuckerman, 2012). It is important to explain that investing in the health care industry is a very costly process, and on this basis, new entrants are normally business organizations that have the capability of raising the necessary capital. Furthermore, it is important to explain that new entrants could be firms operating the same line of business, but operating in a different geographical location (Harrison, 2010). Other possible new entrants include organizations that offer related services, suppliers who are interested in integrating forward in the chain, with the intention of forming a hospital organization, organizations that seek to diversify their portfolios, because of increased competition, etc.
Another type of competitors is indirect competitors. These are health care institutions that offer substitute products. It is important to explain that this is competition, because these organizations have the capability of satisfying the customers of a health organization, in a similar manner, as the organization under consideration (Stahl, 2004). In gathering data, concerning the threats that direct competitors pose, there is a need of carrying out market research, through surveys, and observations.
Surveys would enable the health care organization to collect data, based on the quality of service it offers, in comparison to the quality of service offered by its competitors. This type of information is very important because it ...Download file to see next pagesRead More
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