Rivalry in healthcare involves various emerging service provision models driven by a huge investment appetite.
Models such as large network corporate-style outpatient and inpatient facilities have burgeoned, bolstered by the advantage of economies of scale.
Kenya is proving to be an attractive destination for capital investment in healthcare services, therefore bringing in new entrants to the market.
When once asked how he became great, the legendary basketballer Magic Johnson replied that it was competition that made him go out of his way to practice for long hours, to be the best that he could ever be. Similarly, the current healthcare landscape is punctuated by a cut-throat rivalry that has driven service providers into jockeying for an edge.
A fundamental question is how then do we define competition in healthcare? In his 1979 paper ‘How Competitive Forces Shape Strategy’, business strategist Prof Michael Porter described five forces that define competition. These are competitive rivalry, threats of new entrants, bargaining power of suppliers and consumers and threat of substitute products.
Rivalry in healthcare involves various emerging service provision models driven by a huge investment appetite. Models such as large network corporate-style outpatient and inpatient facilities have burgeoned, bolstered by the advantage of economies of scale.
Kenya is proving to be an attractive destination for capital investment in healthcare services, therefore bringing in new entrants to the market.
Substitute products usually offer more convenience and relief to consumers. For example, comprehensive outpatient centres located in shopping malls have reduced reliance on outpatient services in large hospitals thereby causing a decrease in their patient footfall.
It follows that health facilities should carefully examine their strengths and weaknesses and device strategies to ensure continued relevance.
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