Porter competitive forces model, International Economics

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.

Posted Date: 3/2/2013 5:53:43 AM | Location : United States







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