Montefiore Medical Center: A Case Study
... power, and entry and exit barriers) affect the business and therefore, it is important for the management of any organization or institution to determine it in order to develop an edge over the rivals. Forces Montefiore Medical Center as the Seller Rivalry Among Existing Competitors With the merger of the three hospitals under the name of St. Vincent Catholic Medical Centers, the competition is intensified. In this regard, it will be difficult for Montefiore to beat the newly merged medical centers because of the fact that the merger will enable St. Vincent more funds for their expansion or other activity in relation to providing quality health care services to the people in the community. However, since Montefiore was able to have Bentley to support them financially, Montefiore must take advantage of the opportunity to employ new tactics which can include lower costs of services, snazzier features, customer service and even special promotions. Entry of New Competitors There have been a growing number of institutions and organizations engaging in the field of medicine. Because of this, the competition is greatly increasing and the sizes and capabilities of these medical centers are becoming more narrow and equal. With this, the Montefiore Medical Center must employ successful competitive strategies to win the battle of competition. Threats of Substitutes Since there is an increased in the number of medical institutions, there will be lots of medical centers that will be providing the same services as that of being offered in the Montefiore Medical Center. In this regard, the people in the community then will have greater chance of choosing the centers in which they wanted to be treated. As a result, there will be a decrease in the admission of the patients in the Montefiore Medical Center. Buyer Power In addition, to the other forces introduced by Porter, the buyer power is also an important force that can greatly affect the profitability and success of Montefiore. Because of the growing number of medical institutions in the country, the buyer power of the patients will greatly increase. Meaning, this power of the buyer can be used to enable the Montefiore reduce the costs of its services to the people. Since there are different organizations and medical institutions in the community, the buyer can choose where to get the treatment, and practically speaking, they will choose the medical centers that offer low costs of health care products and services. Supplier Power As the provider of different health care services to the people, the supplier power of the medical center has little or no bargaining power at all. In this regard, since the services being a...