Evaluate the competitive environment for manufacturers of OSA devices, using Michael Porter’s (2008) “five-forces analysis.” Is this an attractive industry segment?
Professor Michael Porter of Harvard Business School created “five-forces analysis” over 12 years ago. This tool was designed to help organizations look beyond the competitors and the difficult challenges themselves and assess the variables that influence the actual business that can impact profits. It is a focus on getting better rather than blaming circumstances.
HERE ARE THE 5 “FORCES”
- Competitive rivalry. Many will say, “There’s no such thing as competition.” Yet, others out there are eating into your market share because they do something better, more popular, or more innovative. Any wise leader coming into an industry will look to see what the top companies in the market are doing so they can match or exceed their performance.
- Supplier Power. If a company makes computers; supplier power is in reference to those who sell the computer manufacturer the components and chips. If the supplier drives up the costs or slow down the supply of parts and chips, they hold great power over that company.
As someone who consults for doctors and has coached 1000s, who they get their information and any related products from has a drastic impact on results. As an example of Supplier Power in chiropractic, some clinics take care of 200 people a week and make 1 million dollars a year while others take care of 200 people a week and make 250,000 dollars per year. This is often due to the impact their information supplier has on them. I now strive, obviously, for my doctors to do a million on 200/week but that is often a big change as it wasn’t what was supplied to these doctor originally. - Buyer Power. Does the customer/patient/member/client hold the power? If you say yes, then you’ve placed your results in the hands of the environment and outside the value of what your business has to offer. You need to shift your concepts, communication, and processes.
- Threat of substitution. The natural approach to healing, alternatives to medicine, and the body healing itself were once the domain of chiropractic. Today, multi-level marketing pills, oils, and liquids, a variety of therapists, and even certain drug campaigns make all of these same claims. As technology, access to information, and different products and services enter the market looking to be the ultimate, natural, wellness solution you have to continually innovate and make yourself irreplaceable. This doesn’t mean offer services you do not believe in or sell your soul. Principles are everlasting, but processes are temporary. You have to grow or be replaced.
- Threat of new entry. In coffee, there was a Barneys in every shopping mall. Now they’re gone completely; eradicated from this earth by Starbucks. As an example of this in chiropractic are the new entry of the multiple different cheap-care franchises. When HMOs first hit the market in the mid-90s, we had to make sure our care was superior to what you would get for a 5 or 10 dollar co-pay. In the process we grew from one office to five offices and eventually consulting and opening up offices across the U.S. and Canada.
Become a force of nature: The environment or a competitor should not control your destiny; the effectiveness and impact of your business should be all that ultimately matters.
Transform your thinking, philosophy, strategy, and protocol to thrive in any environment:
CCC MEGA Growth Summit
WHEN: October 10, 2020
TIME: 9:00AM – 5:00PM
LOCATION: Doubletree by Hilton Hartford-Bradley Airport
16 Ella T Grasso Turnpike, Windsor Locks, CT 06096
COST: $149 for Doctors // $247 for DC + Family &/or all Team Members
- Multi-million Dollar Practice: The process, principles, and mindset.
- Super-systems: The practical systems that take the lid off your capacity to help more people.
- Money-Making Marketing that works right now: From DCs that see 100s of new patients each MONTH.
- Standing Ovation Communication: The step by step in the art of speaking and persuasive talk.
- Miracle Motivation in building a team.
- High Voltage Volume – to grow, learn from doctors seeing 1000s each week.
- Insights and practices to growing multi-doctor and multi-site practices.
