Need help with your Discussion

Get a timely done, PLAGIARISM-FREE paper
from our highly-qualified writers!

glass
pen
clip
papers
heaphones

Porters 5 Analysis of the Impact of Covid-19 on the Healthcare Sector

Porters 5 Analysis of the Impact of Covid-19 on the Healthcare Sector

Porters 5 Analysis of the Impact of Covid-19 on the Healthcare Sector

Porters 5 is an industrial analysis metric that evaluates a sector’s competitive landscape by analyzing the supplier’s and buyer’s bargaining power, the threat of substitution, and the threat of new entrants (Safari, Farhang, & Rajabzadehyazdi 5). Accordingly, the impact of Covid-19 on each of these forces will be analyzed.

The suppliers’ bargaining power entails the number of vendors in the market, the uniqueness of the product, and its pricing. In this case, the suppliers constitute ventures retailing medical equipment such as gloves, protective wear, and even masks, which are present in high demand resulting in the escalation of prices (IBISWorld). As a result, there is a shortage of these supplies, making some nations initiate production of the merchandise. Given the current situation, suppliers have higher bargaining power and hence dictate the product’s prices. On the same note, suppliers comprise dealers who retail drugs used in managing the symptoms of the Covid-19 illness. These drugs are also in high demand, which has resulted in high prices. Therefore, the suppliers have a high negotiating power based on the high demand for medical equipment and drugs.

The buyer power comprises the ease of buyers in the accessibility of the products, the number of suppliers, and switching costs. In this case, the buyers comprise the patients and medical professionals who seek medical services. The ongoing global pandemic has resulted in the crowding of most hospitals to the extent that patients suffering from other ailments cannot access healthcare services (IBISWorld). The pandemic has tested the capability of most healthcare systems in the world. Presently, the healthcare capacity and technical expertise are insufficient in treating patients suffering from both the virus and other illnesses. The switching costs are high due to the low probability of acquiring the service from an alternative healthcare facility since the hospitals are crowded.

The threat of substitution refers to the accessibility of alternative medical services in curing illnesses. Presently, the main alternative in treating illnesses is traditional medicines and the adaptation of a healthy and nutritious diet. China had resorted to souring traditional medicine amid the pandemic crisis in the country. Similarly, other nations have resorted to this alternative. At the same time, the World Health Organization (WHO) encourages people to adopt a healthy diet to build resistance against infection. Unlike the standard industry case scenario, the pursuit of alternative products would favor the healthcare industry, given that it is presently overwhelmed.

The threat of new entrants refers to the ease of establishment of firms in the industry. There are barriers to entry in the healthcare industry, including high technical requirements and extensive capital. Given the shortage of healthcare workers around the globe, new entrants would encounter challenges in contracting employees (IBISWorld). Moreover, the procurement of healthcare equipment, for instance, beds, ICU apparatus, etc., would be hampered by the present shortage in the industry. Also, low-cost items such as masks, protective garments, needles, and testing kits, amongst others, are currently overpriced and insufficient to service the market needs. Moreover, the industry is strictly regulated amid the Covid-19 pandemic complicating the entry of a new firm. Therefore, there exist barriers to entry into the healthcare industry.

Competitive rivalry refers to the strength of competitors with regard to product quality and technical rivalry. There is a low, competitive rivalry between hospitals as they are overwhelmed by inflowing patients. The Covid-19 pandemic has resulted in a shortage of even the most basic hospital facilities. As a result, the conversion of schools and parking lots into temporary care facilities is being carried out to accommodate a large number of patients. For instance, India is converting its trains into hospital wards. Therefore, if a healthcare firm was to be established at the moment, it would attract customers to the facility.

Works Cited

IBISWorld. “Coronavirus Impact on Industries & Sectors Around the World.” Industry Insider, 7th April 2020. https://www.ibisworld.com/industry-insider/press-releases/ibisworld-monitors-the-coronavirus-impact-on-industries-around-the-world/.

Safari, Negin, Maryam Farhang, and Elaheh Rajabzadehyazdi. “The study on the competitive status of construction companies based on Michael Porter’s five competitive forces (Case study: Armeno Project Development and Management Company).” European Online Journal of Natural and Social Sciences: Proceedings 5.3 (s) (2016): pp-72.

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

Question 


Sector Analysis

Porters 5 Analysis of the Impact of Covid-19 on the Healthcare Sector

Select one S&P 500 sector and conduct an Industry Analysis.

Porters 5 Analysis of the Impact of Covid-19 on the Healthcare Sector

Porters 5 Analysis of the Impact of Covid-19 on the Healthcare Sector

  • The Sector I chose is HEALTH CARE.

Make sure to include Porters 5 forces in your analysis.

Comment on how the corona virus has affected the industry. Focus on equal parts good and bad. Don’t focus on all negatives. The goal is to try to find the positives going forward, if any.

Have a similar assignment? "Place an order for your assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter


1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.

We Can Write It for You! Enjoy 20% OFF on This Order. Use Code SAVE20

Stuck with your Assignment?

Enjoy 20% OFF Today
Use code SAVE20