2. Summary
• Fast growing industry
• Healthcare can create an enormous part of a country’s
economy.
• Consists of hospital activities, medical and dental
practice activities, and other human health activities.
• Companies that provide medical equipment, medical
supplies and healthcare services such as hospitals and
nursing homes.
4. Political Forces
• Rules and regulations
-valid license for importing drugs.
-entry and exit laws.
- Foreign degree holders cannot work
without passing exam conducting by
government.
-Tax policies Sri Lanka government is
currently getting less percentage per annum on
the cost.
5. Economic Factors
• Quality and demand depends on the personal
income or wealth
• International financial crisis is very important
when conducting business globally.
• Interest rates on loans affects the industry.
• Exchange rate is also important when importing
and exporting.
• Domestic production level of medicine.
• Government spend lot for maintain good health
of the country (malaria and HIV projects).
6. Socio-cultural
Factors
• People’s spending for health and their loyalty.
• Attitudes of people.
• Country’s demographic factors
- female percentage is higher than others..
• Media glance for this industry is higher and media can be
7. Technological
Factors
• Introducing new vaccines.
• R & D to find new treatments - SAS, SWINE FLU
• Well tested medicines and medical equipments
to serve.
• Adoptability of modern information and
communication technology.
• Safety & standardized transportation
techniques for medicine.
• Government legislation on technology
9. Threat of New Entrants
• Initial capital requirements - to buy high technology
equipments, salaries, to rent premises.
• Government rules and regulations
• Brand loyalty of customers to existing hospitals
• Needs highly qualified medical consultants
& nurses. Qualified and trained professionals
desire to work with reputed institutes.
• Switching costs
• New entrants will lower the market share
10. Competition from
Substitutes
• Quality services and well branded medicines.
• Brand loyalty. Brand Loyalty. All competitors try to give best
service with low price than others.
• Kind and heartiest hospitality service for patients.
• Different brand names for the same generic (Paracetamol)
• Service expansion - e-channeling, partnership with mobile
service providers and geographical growth
11. Bargaining Power of
Suppliers
• Well reputed consultancies and medicine suppliers
have bargain power. They can demand themselves -
gsk, Hemas, SPC
• Monopolist miscellaneous suppliers - Lanka Oxygen
Company & Ceylon Electricity
• Food and beverages are the essential for day today
activities in Hospitals.
• Generally hospitals should be kept environmental
friendly- Need to hire quality cleaning service
12. Bargaining Power of
Buyers
• This industry deals with human lives. So always
they are comparing the services and facilities
with competitors.
• It is needed to look after them and give them
satisfactory service to retain them.
• If some hospitals have quality services with low
price, patients visit those hospitals.
13. Rivalry between Established
Firms
• Price competition between main competitors creates
intense rivalry due to changes of prices.
• Service introduction. Competitors always update with the
latest technology and seeking for innovation.
• Advertising directly affects to the company picture.
14. Opportunities Threats
Opening new branches in
island wide and world wide
Labor turnover
Opening new laboratories using
latest technologies
Patient turnover
Increase number of rooms in
hospitals
Other hospitals moving to new
technologies
Facilities for mobile and e-
channeling
Inimitability of unique features
24/7 hours Availability Interest rates fluctuation
Opportunities and Threats
