Final Strategic Development - Organization is Johns Hopkins Medical
Running Head: PORTER’S FIVE FORCES ANALYSIS
PORTER’S FIVE FORCES ANALYSIS 2
PORTER’S FIVE FORCES ANALYSIS
Ebonee Jarrell
PORTER’S FIVE FORCES ANALYSIS
Threat of entry
The incurred threats when an organization intends to begin a venture or branch off into another market reveals the threat of entry and how they may affect the organization.
The government policies regarding the levels of hospitals and the required services that they are expected to provide, regardless of whether they are profitable or not to the hospital ensures that for Johns Hopkins Medical to maintain its level and continue to function as a major healthcare facility, it has to maintain some services and evaluate the available resources that may enable it open new branches or wings.
The venture into creating a university linked to Johns Hopkins Medical ensures that the university has to make a conscious effort to remain relevant in the education sector, making the limited resources have to be diverted into maintaining the university and its facilities.
Intensity of rivalry
The intensity of rivalry and competition between the relevant organizations into the provision of healthcare rivals and dictates the popularity and the ability of Johns Hopkins Medical to appeal to potential clients. This means that the organization has to pull on its resources to maintain its status as a major healthcare provider in the United States.
The rivalry intensity also ensures that the Johns Hopkins Medical facility, and especially the University has to be up to date in medical procedures and innovations, to make it a relevant medical institution that can attract a favorable number of students at each application.
The threat of substitute products
With the continued rise of specialized healthcare facilities, cheaper medicines, and other medicinal inventions, it has become increasingly important to follow closely on the charges required for services rendered at Johns Hopkins since there are cheaper healthcare facilities. This takes a lot of funding and effort in market research and sales strategies.
With continued inflation, Johns Hopkins Medical has to ensure that it provides its staff, nurses, faculty, and physicians are offered adequate pay for their services to avoid any strikes or misunderstandings that may affect the hospital and its services. This takes a considerable amount of capital from the acquired profits and payments.
Bargaining power of suppliers
The healthcare providers are limited and may be attracted by the competitors of Johns Hopkins Medical. This forces the organization to listen to and pay heed to the needs and dispositions of the staff and healthcare providers employed at the hospital. This ensures that there are much effort and resources placed in providing motivation and incentives to the staff.
The source of the medical equipment and facilities provided to Johns Hopkins Medical is a major player in the ability of the hospital to provide its services since trained personnel have to be employed to take care of the equipment, which requires the setting aside of funding to acquire spares as needed and to employ and pay the personnel.
Bargaining power of buyers
With the emergence of numerous other healthcare options and providers, Johns Hopkins has to spend capital on advertisement and marketing, to ensure that it remains the leading healthcare provider, not only to its immediate vicinity but to the potential clients as well.
The patients give Johns Hopkins Medical its goals and drive. This means that the organization has to spend a considerable amount of money to maintain legal matters, try to win lawsuits, and pay settlements where required.
References
Bruijl, G. H. T. (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.
Oneren, M., Arar, T., &Yurdakul, G. (2017). Developing competitive strategies based on SWOT analysis in Porter’s five forces model by DANP. Journal Of Business Research-Turk, 9(2), 511-528.
Varelas, S., & Georgopoulos, N. (2017). Porter’s competitive forces in the modern globalized hospitality sector- the case of a Greek tourism destination. J Tour Res, 18, 121-131