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

How and why did europe set up its single currency, Q. How and why d...

Q. How and why did Europe set up its single currency? Answer: The why part of the question is associated to large fluctuations in the exchange rates between the Europe

Global economics, How have global economic institutions(e.g. IMF,WB, and WT...

How have global economic institutions(e.g. IMF,WB, and WTO) been influenced by American values? Why have developing countries found it so difficult to adopt the neo-liberal econom

Economics, describe the U.S role in the world economy

describe the U.S role in the world economy

Theory of internation trade, oppotunity cost theory of international trade....

oppotunity cost theory of international trade.Explanation of the theory

Real exchange rate affects exports and imports, Q. Explain how an i...

Q. Explain how an increase in the real exchange rate affects exports and imports. Answer: While the real exchange rate rises domestic products are cheaper relative to

Expectations prepared by the heckscher-ohlin model, Q. Why do you suppose ...

Q. Why do you suppose that South-South trade does not conform in volume, but does conform in pattern with expectations prepared by the Heckscher-Ohlin model? Answer: The patt

Equation needed, If one were to use the simple monetary model to predict th...

If one were to use the simple monetary model to predict the $/Euro exchange rate (L is constant), what would the expected exchange rate be?

What is securitization, Q. What is securitization? Answer: The ...

Q. What is securitization? Answer: The term refers to monetary instruments in which bank assets are repackaged in readily marketable forms These kinds of "derivatives"

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