Porters five forces of public sector

With slight tweaking they are equally applicable to the non-profit sector; an examination of these will highlight the implicit vulnerabilities of organisations working in this sector. The power of large customers The power of large suppliers The level of rivalry among organizations in an industry The potential for entry into the industry The threat of substitute products The significance of each of these will be individually engaged in a general discussion of the NGO sector. For the NGO sector the activities are mainly service, and not product, based. Further, these services are social in character and based on specific skills rather than material resources.

Porters five forces of public sector

Received Oct 18; Accepted Jul 1. This article has been cited by other articles in PMC. Abstract Background This paper discusses the findings of a study which developed five case studies of five multinational health care companies involved in public health care systems.

Strategies were analysed in terms of attitude to marketing, pricing and regulation. The company strategies have been subjected to an analysis using Porter's Five Forces, a business strategy Porters five forces of public sector, which is unusual in health policy studies.

Methods This paper shows how analysing company strategy using a business tool can contribute to understanding the strategies of global capital in national health systems. It shows how social science methodologies can draw from business methods to explain company strategies. Results The five companies considered in this paper demonstrate that their strategies have many dimensions, which fit into Porter's Five Forces of comparative advantage.

More importantly the Five Forces can be used to identify factors that influence company entry into public health care systems. Conclusions The process of examining the strategic objectives of five health care companies shows that a business tool can help to explain the actions and motives of health care companies towards public health care systems, and so contribute to a better understanding of the strategies of global capital in national health systems.

Health service commissioners need to understand this dynamic process, which will evolve as the nature of public health care systems change. For some companies, this formed the springboard for involvement in formal public-private partnerships for capital projects [ 1 ].

However in these two phases, the multinational companies were more likely to be service, property and finance companies, rather than health care companies. More recently, healthcare multinationals have started to become involved in public health care systems as providers of health care [ 2 ].

This paper explore the processes involved in this development, which can be argued in another variant of public-private partnerships-or even a further stage in a typology from marketisation to privatisation [ 3 ].

This paper aims to explore how a group of health care multinational companies have become part of several national health care systems over the last decade. The characteristics of this group of new global players are varied and reflect the national origins of many companies.

They include experience of delivering acute, mental health services, and care services for older people to public providers at national levels, vertical integration of renal care services, and high technology care. Much of the expansion has taken place in Europe, during the last decade.

The expansion of renal care companies and high technology care is a more global expansion. Expansion into older care services is beginning to have a global impact in countries with an ageing population. Understanding this process of integration into public health systems will help to provide insights into the strategies that global capital is using to access national health systems.

This paper will use a competitive advantage framework to gain an understanding of how these companies have moved into the public sector, which will contribute to the development of new health policy methodologies to study public-private relationships.

Methodology The research question underlying this paper is "How and why can global private interests enter national health policy settings? The hypothesis that emerges from this research question is "That global private interests enter national health policy settings through the use of expertise and additional skills for national health systems dealing with growing demographic pressures and demands for health care.

Much qualitative social science research has focused on the processes of understanding research subjects and so creating an understanding of different forms of social reality. Social science research, throughout the twentieth century, has gradually evolved ways of exploring different social realities of communities connected to health care, whether patients, health professionals or health institutions as forms of organisational culture.

Exploring the actions of multinational companies in relation to their growing role in public health care systems raises questions about whether to consider company activities in a business or a sociological context. Do we want to explore the 'life-worlds' of multinational companies? Initial research that explored the strategies of five multinational health care companies used ten key informant interviews, supported by analysis of company publications and evidence from market research reports, published academic research on aspects of contracting, regulation and pricing at a global and national level, and the press [ 1 ].

Porters five forces of public sector

Business research tends to ask questions about how and why companies take certain decisions and the implications of these decisions for company competitiveness and profits.

As a form of applied research, business research can be used by companies to inform future strategies. This paper argues that research into how multinational health care companies are becoming integral parts of public sector health systems, has to engage with some of the strategic methodologies that companies use to analyse their competitive environments.

This can be seen as a form of interpretivist research in that it tries to understand decisions from the perspective of this new group of stakeholders, within the public sector. Rather as research into patient experience starts by trying to understand the 'world' of the patient, this research aims to start to understand the world of the multinational health care company, through a competitive advantage framework.

As the number of health care multinational companies involved in public healthcare systems is growing slowly, it was decided to use a case study approach, with five companies chosen to illustrate different scenarios.

These companies have been chosen because they fulfilled one or more of these five basic criteria: A Swedish company, Capio, was chosen because it was starting to expand outside the Nordic market that it was currently active in.

The Nordic region has a strong public sector focus for health service delivery.Strategy matters in the public sector as well as in the private sector. Michael Porter's “five competitive forces” (5 Forces) framework (Porter Porter, M.

E. “How Competitive Forces Shape Strategy.”. Sep 13,  · Porter’s Five Forces are designed for traditional for-profit commerce and industry scenarios. With slight tweaking they are equally applicable to the non-profit sector; an examination of these will highlight the implicit vulnerabilities of organisations working in this sector.

Marketing Skills For The Not For Profit Sector- The Value Of Porters Five Forces. This article seeks to uncover the benefits of utilising Porters Five Forces in the non-profit sector particularly when developing business and marketing strategy.

Porter's Five Forces Framework is a tool for analyzing competition of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack of it) of an industry in terms of its profitability.

An "unattractive" industry is one in which the effect of these five . Five Forces comes out of Porter ˇs work on competition at Harvard University. It has been widely used in business but less so in the public and voluntary sector.

Five Force Model for MDAs The Five Forces model of Porter is an Outside-in business unit strategy tool that is used to make an analysis of the attractiveness (value) of an industry structure. The model was designed for analyzing individual business strategies.

Porter’s Five Forces | Strategic Management for Nonprofit & Public Organizations