Service Area Competitor Analysis - Essay Sample

Introduction

Service area competitor analysis encompasses the process where an organization develops a strategic plan which allows it to test and understand the industry where it operates through the identification of its competitors, evaluating their strengths and limitations and forecasting on their potential strategic actions. This process is often undertaken by an organization to establish the vigor of the market contenders and taking necessary steps aimed to improve the state of the organization in realizing its set goals and objectives. Because organizations operate in a well-defined environment, they often tend to extend their foothold in the competitive business environment so that they can edge out the competitors. In light of this, therefore, the paper will explore different competitor information categories that help conduct competitor analysis and whether they are suitable for health care organizations. Also, the paper seeks to explain the necessity of defining the service area and establishing how this is affected by managed care penetration.

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Competitor Information Categories

Determining the competitor information categories is often helpful in successfully conducting competitor analysis. Establishing the service area confines is useful in the competitor analysis, where the organization will seek to acquire adequate information regarding the boundaries within which it operates (Ginter, Duncan & Swayne, 2018). This will provide the organization with an opportunity to understand the competitors within the service area and their strategies and in effect develop counter-strategies aimed at choking the competitors by thinning their customer base through the provision of specialized services. Also, other key information categories in a competitor analysis are spell out the service category that should be analyzed. Concerning the analysis of the service category, there will be reliable and credible information about the services offered by the competitor and this would help determine the strength of the competitor (Fleisher & Bensoussan, 2015). Based on this, therefore, an organization can effectively anticipate their strategic moves and devise a plan that will enable it to provide excellent services in that particular category. Moreover, other competitor information categories are determining the service area profile and its structural analysis that will give further insight into effectively and efficiently conducting competitor analysis.

The Usefulness of Categories for Health Care Organization

It is instructive to note that information categories are often utilized by health care organizations in mapping out competitors to establish competitors that are similar and to determine whether they are in the same strategic group or not. Furthermore, the categories are appropriate for the health care organization as it helps in the identification of the service area and establishing their capability and limitations in the competitive environment (Ginter et al., 2018). The information categories often form the foundation of collecting data about the service area which the health care organization can effectively use in determining the strategic actions of the competitors that have the potential to weaken the position of the organization in the competitive market (Fleisher & Bensoussan, 2015). Additionally, the service area structural analysis would help the health care organization in determining the attractiveness of the industry and developing a framework that will help in gaining a better understanding of the dynamics in the competitive environment.

Information Gathering and Strategic Decision Making

The information categories outlined above would help the health care organization in gathering proper information concerning the actions of the competitor and make strategic decision that will improve the service delivery of the organization (Ranade, 2018). Moreover, the categories will provide a clear roadmap in collecting relevant data and information that can be used by the health care organization in analyzing the actions and objectives of the competitors (Ginter et al., 2018). Also, the organization will make key decisions by relying on the information concerning the strengths and weaknesses of the competitors. The service category will be useful for the health care organization to specify the products to be analyzed that can help it in expanding its presence in the market.

Importance of Defining the Service Area

Defining the service area would help the health care organization in detailing customer preference and the availability of other health care providers. Furthermore, a clearly defined service area will provide the incentive to conduct an adequate analysis of different factors in the market and determine the viable strategies that can be used in enhancing the capacity of the health care organization in providing services (Fleisher & Bensoussan, 2015). Moreover, defining the service area will allow for further analysis of the critical factors in the market that are vital in improving enhancing the strength of the health care organization that will enable it to profitably compete with other health care providers within the service area.

Managed Care Penetration

It is imperative to note that the managed care penetration often affect the definition of the service area as it always has a bearing on determining the specific variables in the area where the health care organization is operating. The managed care penetration also have a significant impact in understanding the different information categories and how they help in making decisions regarding hiring knowledgeable and experienced physicians that will help the organization in realizing its set goals and objectives (Ranade, 2018).

References

Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective application of new and classic methods. FT Press.

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations. John Wiley & Sons.

Ranade, W. (2018). Markets and health care: a comparative analysis. Routledge.