CHAPTER 4

Competitive Strategies

Competitive strategies are ways to make a business more successful in a market. Porter’s five force analysis is a framework for industry analysis and business strategy development. It draws on industrial economics to derive forces that determine competitive intensity and therefore attractiveness of a market.1 Discussion in this chapter elaborates on one of the five forces that bears significance on the industry in terms of ease/difficulty of entry. According to Devers, Brewster, and Casalino (2003), hospitals’ strategic emphasis changed between 1996 and 1997, and 2000 and 2001. In the mid-1990s, hospitals primarily competed on price through wholesale strategies. By 2000, non-price competition gained significance ...

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