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- #Pharmaceutical industry threat of new entrants registration#
- #Pharmaceutical industry threat of new entrants professional#
Make sure that any action you plan is legal and ethical. A new practice might cut into your market share but in terms of the health professions there are ethical considerations that you need to take into account before you retaliate. The risk of retaliation is the risk that the established practices retaliate to the entry of a new practice. Keep in mind that you can attempt to create barriers to local entry for new entrants into your local market – but that other practices can do the same to you if you are the new entrant into the market. For others this would mean high capital costs for equipment – this is especially important for professionals like dentists that require these high capital outlays to be able to start the practice.
#Pharmaceutical industry threat of new entrants registration#
At the least this would mean registration with HPCSA and BHF. This threat depends on two main factors: 1) are there barriers to entry into the market? And 2) is there a risk of retaliation from established practices?īarriers of entry into the market can be anything that makes it more difficult for a competitor to start their practice. These five forces are: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, threat of substitution and competition among rival firms.Īny new entry into your own market cuts into your potential market share. Porter’s five forces looks at five different variables in a market which hold potential risk for a new or established entry. This is quite an old model for strategic analysis – but with some adaptation it can help you identify possible threats before you run into them, and this might make all the difference between success and failure. For today I’m going to give you an overview of Porter’s 5 Forces.
#Pharmaceutical industry threat of new entrants professional#
But how will you as a health professional do this? How will you know if you should start your own practice? Is it feasible? Are there risks? To this end I will be going over a few basic analysis tools over the next few days which you can use to analyse your current or potential competition.
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Entrepreneurs will solve the world’s problems. I believe that while new technologies will change patient care drastically over the next 10 years, the biggest gap for change currently is in the form of innovative new business models and ideas in the healthcare arena. This is good – competition fosters innovation and we desperately need that in South Africa. As technology levels the playing field and the barriers to entry are removed more and more health professionals are taking the leap into the unknown by starting their own practices. Most schools try to lay some sort of groundwork for private practices – unfortunately the way the health professions and private practices are evolving most of the old ways of doing things are being questioned.
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Others might have made you write some sort of plan. Some might have gone as far to say that you need to write a business plan.
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While studying your lecturers most likely told you that if you want to open a practice you need to look at the area where you want to start the practice and then they might have rattled off a few things that you need research before opening your practice.