Health Care Industry Porters Five Forces Analysis

Submitted By : LEROY CORRIEA 08 IMR DEVISREE NAIR 17 IMR VIRAJ WADKAR 40 IMR Submitted To : Prof. Shilpa Vohra

Health Care Industry Porters Five Forces Analysis

1. BUYERS POWER
a) Demand in Existing Society :The demand has indicated CAGR of 16%. b) Ratio :India still falls short on various key Health Indicators:Hospital Beds - India - 0.7% per 1000 Worldwide 3.96% per 1000 c) There is a huge mismatch between demand & supply of Healthcare Infrastructure & services in India.

2. SUPPLIERS POWER
a) Competition in Equipment Market is high :i. Disposable Equipments are made locally. ii. High Quality (Value) equipments are made by International companies. b) Companies have established Assembly Centres.. c) High Competition is turning out to be beneficial

3. RIVALRY AMONG COMPETITORS

a) Increasing Competition :i. Drugs & Pharmaceuticals sector has attracted FDI worth $ 1.66 billion. ii. Hospitals & Diagnostic Centres have received FDI worth $ 761.18 million. iii. Only 20% of market is been trapped by Health Care Industry. iv. The Share of Private Sector is 78% in India. v. The Share of Public Sector is 22% in India.

4. THREAT OF NEW ENTRANTS

Government does not have Financial Strength for Large Scale Investment. They are encouraging FDI. There are very few FDI Hospitals in India. Reason Low rate of Interest and Long Gestation period.

5. THREAT OF SUBSTITUTES
The Society is moving towards alternative medicine , due to less side effects like Homeopathy, Ayurvedha, Unani, etc. compared to allopathy. There is a rise in the amount of people coming to India for Ayurvedic Treatments.

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