Porter's 5 Forces

Porter's Five Forces

The threat of the entry of new competitors

✓ Free Public checkups ran by the government.

✓ Public clinics that claims the same type of services but instead of going to rehabilitation centers, services are cheaper and sometimes free of charge or small donations will do.

✓ Most of the technology and specialized know-how is in the public domain and widely available, though the quality cannot always be ensured. The costs to acquire them depend upon the service mix offering of the particular organization. The economies of scale is therefore variable.

✓ The existence of learning and experience curve effects allows an organization already in the market to establish itself strongly as a market leader which the competitors would have a tough time countering.

✓ The loyalty of the customer is high when he is satisfied with the quality of the service, quantity being the second most important consideration. When one’s life is at stake, few would think about the costs incurred. Costs therefore comes a poor third in the list of considerations. Where no loyalty exists, the particular organization would have to demonstrate that it can amply justify in the minds of the customers that by switching they would gain more than they could possibly lose. Thus better quality, more quantity and lower or value priced offerings is the best way to attract them. The capital requirements vary according to the size and service mix while low cost disadvantages independent of size exist. Access to distribution channel is easy and the regulatory policies are generally favorable to any new entrant.

The threat of substitute products or services

✓ Non-existent.

The bargaining power of customers (buyers)

They are price-sensitive as long as they are unaware about the quality and quantity of services on offer. The more they are quality and quantity sensitive, the less they bother about the price and would always measure their...