5-forces analysis of primary care
Primary Care
Bargaining Power of Buyers
- Through customers may not be informed, the large number of physicians implies buyers
have power; physicians cannot raise price easily
Level of competition
- Large number of physicians
- Branding does not have an influence
- Higher customer price sensitivity
- Polyclinics provide low-cost option
Barrier to entry
- The default for physicians is primary care so barriers to entry are low
Extent of substitutes
- Self-medication?
Bargaining power of suppliers
- Suppliers are pharma companies, land, etc., not much bargaining power
Tertiary Care
Bargaining Power of Buyers
- Much less bargaining power
- Lack of knowledge
- Limited supply of specialists
- Less price sensitivity
Level of competition
- Greater level of branding reduces level of competition
- Lesser excess capacity and growing market with age
- Principal driver of competition is government subsidy
Barrier to entry
- Large investments in physical building and plant
- Research lends to brand development
- Absolute economies that arise from regulation
Extent of substitutes
- At tertiary lever, fewer substitutes
Bargaining power of suppliers
- Key bargaining power is that of specialist physicians
- Pharma and medical suppliers have some bargaining power because Singapore is sub-
scale?
Primary Care suggestions:
Step-Down Care Integration:
- Offer long-term care after patients receive tertiary care
- Lock in paitents and create a trusted brand for primary care
- This type of care is uncommon in Singapore
Specialist Doctor Branding:
- Instead of just renting space to specialists, have specialists spend time in primary care
clinics
- This builds the reputation of the clinics and generates referrals for tertiary care
- Naming clinics after specialist doctors can attract patients
Attracting Transient population:
- Use branding to appeal to people who move frequently and don’t have regular doctors
- Offer a competitive edge in primary care services
Opportunities in secondary care:
- Secondary care in Singapore is currently limited to ambulatory care linked to
government polyclinics or long-term care centers managed by charitable organizations
- As the nature of society changes, the needs for everything from step-down care to long-
term care, will increase
- This offers new entrants the ability to invest in branding and an opportunity to stake
their claim on this space
Strategy – Tertiary Care:
- Acknowledge limitations due to public sector subsidies
- Consider focusing on segments not served by public hospitals
- Invest in research funding for physicians to enhance reputation and reduce their
bargaining power
- Parkway could certainly lower the power of medical and pharmaceutical suppliers by
working through a group purchasing organization.