Porter competitive forces model, International Economics

Assignment Help:

Porter Competitive Forces Model:

        Effectively dealing with the competitive forces that exist within its industry lead to a successful organization. The organization interacts with its suppliers, competitors and customers. In addition, there is the potential to substitute services and products. It is extremely necessary that these interplays are evidently understood and defined (Ward & Peppard, 2002, p. 95). The Porter model is used to analyze the value or attractiveness of an industry structure (12 Manage, 2007: Five Competitive Forces).

1543_Porter Competitive Forces Model.png

Figure five competitive forces (Porter)

         The International Medical Center (IMC) should take the entry of competitors into account, because Saudi Arabia is in a stage of prosperity and development particularly in health care. The International Medical Center is a leader for the private sector in the country of Saudi Arabia because it provides high quality health care service. Therefore, the competition in this area has its position and will be ongoing, for the reason that the economy in Saudi Arabia has shifted its focus on health care.

     IMC has a huge impact in the force of customers (patient), the patients of IMC from many areas inside and outside Saudi Arabia. The International Medical Center is studying the needs of patients, the quality of services most requested, and the common diseases, to provide high quality service.

     Suppliers have a huge impact on the International Medical Center's achievement, because they provide the hospital with medical apparatus necessary to carry out operations, diagnostics, and treatment for patients. In addition, IMC has a service contract and medical equipment from different companies around the world. As a result, it is reliant on these suppliers, which makes them powerful and allows them to exert power over the organization. Consequently, it is extremely significant to have successful communication with those suppliers.

        The threat of substitutes is found in that the IMC continues to develop its health services and medical equipment, and this threat can be solved by using advanced technologies.

       Actually, following the most highly developed technology is a critical issue in the success of hospitals such as IMC. Communication with all of the competitive forces that Porter mentioned is extremely significant, by using the most highly developed technology which is able to help the hospital to have improved performance.


Related Discussions:- Porter competitive forces model

Firms compete only through diversifying their prices, It is often argued th...

It is often argued that firms compete only through diversifying their prices. Do you agree with this view? Justify your answer using examples / case studies form the Greek and/or t

Compare currency board to conventional fixed exchange rate, Q. Compar...

Q. Compare currency board to conventional fixed exchange rate? Answer: Currency board mayn't acquire domestic assets and therefore cannot lend currency freely to domesti

Explain integration of international trade, Explain Integration of Internat...

Explain Integration of International Trade and Foreign Investment

Explain effects of permanent increase in u.s. money supply, Explain the eff...

Explain the effects of a permanent increase in the U.S. money supply in the short run and in the long run.  Assume that the U.S. real national income is constant. A raise in th

Global crisis, Chose a problematic situation that is related to your workpl...

Chose a problematic situation that is related to your workplace and use the following approach to investigate it. Part A:    i-  Give a brief description of the situation.

International monetary system during the post-world war, Q. How did the int...

Q. How did the international monetary system influence macroeconomic policy-making and performance during the post-World War II years during which exchange rates were fixed under t

Economic stability loss due to fixed exchange rates, Q. Explain why even o...

Q. Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd