Discussion_Porter Five Forces

Porter’s Five Forces Model 4

Running head: PORTER’S FIVE FORCES MODEL

Porter’s Five Forces Model

Porter’s Five Forces Model

In the assessment of the business level strategy, Porter’s five forces model generally use to identify whether new products or services will be profitable in the market. Additionally, this model also uses to understand the balance of power between competitors (Roehrich, 2016). Moreover, this model is also utilized to assess business level strategy because of the strengths of five vital forces that typically affect the business competition, such as Suppliers’ power, Buyers’ power, and Competitive rivalry, including, the threat of substitution, and the threat of new entry.

In this, the five forces generally affect the business effectively because of their ability to analyze market effectively. It is expected that anyone can identify the strength of each of the forces when analyze properly because it includes quality of the other tools or models (Roehrich, 2016). When this model is utilized, it can be swiftly assessing the strength of the business position in the market like SWOT analysis. At this stage, Porters five forces model increases the chance to earn more profit in the industry after moving the balance of power more in favor of a company.

Ways to Make Sound Decisions

The health care managers can use the Five Force’s model to make sound decisions for their organizations with the help of analyzing market conditions in which it is necessary to recognize needs and expectations of the people regarding better health care. Further, health care managers can also use the model to make sound decisions for their organizations through improving the health care environment to satisfy expectations of the patients (DeMeester et al., 2016). In most of the situations, the health care managers can use this model to protect competitions and develop latest health care equipments to provide standard treatment facilities. This model can increase knowledge and understanding of the health care managers to create effective health care strategies in order to protect bargaining power of the patients.

At the same time, the health care managers can use the model in decision making by implementing it towards bringing efficiency in the health care organizations by managing good health care systems. Sometimes, the health care managers can use this model as the research and development activities to show themselves as specific health care professionals in the market (DeMeester et al., 2016). This model can be utilized in order to create accountability in the health care management system to increase reputation in the market.

References

DeMeester et al. (2016). A Model of Organizational Context and Shared Decision Making: Application to LGBT Racial and Ethnic Minority Patients. Journal of General Internal Medicine, 1-12.

Roehrich, J. (2016). Sourcing Portfolio Analysis: Power positioning tools for category management & strategic sourcing. Journal of Purchasing and Supply Management, 22 (1), 66-67.