porter+five+forces+for+Sunway+Hospital

Although there is a plenty of Hospitals that could serve the patient well and nicely, otherwise the patient still prefer a single absolute place for him to treat himself in. Within insurance and health care market, big Private such as Sunway Hospital and Government hospitals is seeking for patient health, in that order we can say who is making more efficient and affect reaction on patient health.
 * Hospital Competitors:**

Sunway hospital’s patients are more satisfied with the treatment that is provided by the hospital especially if there is a center for that particular disease or situation, unlike Government hospital doesn’t have private or special center for treatment that could make the patients feel safer and comfort to get hospitalized.

**Threat of New Entrants:** The barriers to entry into the healthcare sector are fairly high. For the hospital industry the biggest barrier is the initial cash investment necessary for research and development. Firms must be willing to risk large amount of money with the likely possibility of No return.

As new competitors in healthcare market won’t be easy to gain good reputation unless you been for a long time in health care field, Sunway Hospital has been in the industry for couple of decades that makes it strong due to experience and reputation it has acquired so far. There are small hospitals that specialise in certain circumstances that patient need and that would like having example problem in Ear, Nose & Throat pain condition. So according to their activities the threats and risk against Sunway hospital won’t be high. Because Sunway hospital also covers and taking care of these particular condition within private centre, different than the small hospitals do.

**Supplier:** The idea of supplier in the healthcare industry is that the healthcare industry is such a large conglomeration of different categories of companies that suppliers and buyers are interacting within the industry itself. Biotech and drug development companies supply medicine to hospitals and pharmacies and hospital supply patients.

In Sunway hospital, the supplying material and services is the main important matter during process and efficiency for handling a hospital and working as 24 hours weekly and more than three shifts a day. Hospitals are getting a huge number of supplier materials every day and that could be rush in time and need to be punctual in delivering equipments and medicines for patients in different locations and situation, this issue need a massive responsibilities for handling the supplier.

Pharmacies and clinics are the main suppliers for Sunway Hospital. Pharmacies supply drugs and in fact the bargaining power of suppliers is very LOW because drugs are available abundantly from different countries, thus it remain over Sunway Hospital to influence its suppliers. Also Clinics supply patients who need advance treatment to the Hospitals. The supplier bargaining power is HIGH since there are many private hospitals such that the patients can opt which hospital he wants to refer.

**Threat of Substitute:** The availability of substitutes varies within the healthcare sector. In general though, the healthcare sector as a whole has no substitutes. There is essentially no way to get healthcare form anywhere other than the hospitals. As an alternative method that the patient need to be thinking off for getting different kind of treatment won’t be as a high risk or threats for Sunway Hospital because patients poorly have clinic and pharmacy that could help the patient in poor way and doesn’t have the right and special doctor to look overview on the patient condition to give him the appropriate therapy, unless the situation of the patient do not need to see a specialist. Thus, Sunway Hospital has no Substitutes as long as it falls under health care industry.

**Bargaining power of Customers:** People cannot just choose to be healthy when the economy is bad. People get sick independent of the economy, so they need health care anyway. In Sunway hospital, the patients fall under many categories of customers that can be teenager, adult, and oldster, these different typical people are getting change while choosing the appropriate hospital while age, for an example teenager never think or give a care about which hospital should be the one to treat him\her and can be proper for them. Otherwise they like to treat well and getting better while lying in hospital. Sunway is competing with other hospitals, and also tries to adjust prices to its service in order to enable them recruit more patients as customers. Most customers are price oriented. The moment they realise price are escalating they tend to migrate to other hospitals, thus making the bargaining power of customers to be HIGH.

**By/ Waled Mohammed Ali**