Introduction
When a company is not moving forward as quickly as one would like it to or when competitors are securing orders from desirable clients, completing a market study is necessary to evaluate the potential competitors. The study should include an examination of the features, market share, pricing, marketing, differentiators, strengths, weaknesses, location, culture, and customer reviews of the competitors. This essay aims to provide an in-depth study of the aspects that should be considered in relation to business opportunities and competition in the market.
It is essential to place a strong emphasis on the rival companies’ products, as well as the markets in which they operate and the strengths that they possess. A corporation can find it helpful when developing its strategy for competing in the market if it is aware of its competitors’ products, services, price, marketing, target market, and competitive advantages. This data can also be utilized to determine areas where the company may gain an advantage over its rivals to better position itself for future success. The evaluated categories are significant for healthcare organizations because they allow these businesses to modify their services and apply the most appropriate pricing strategy.
Several factors contribute to the importance of designating a service region. Organizations without service areas cannot advertise their business to those who live in those areas since the consumers have no way of reaching them. It is, therefore, not easy to gauge the performance of its marketing efforts (Jaśkowski & Czarnigowska, 2019). To succeed in marketing and selling their product or service, they must have a distinct service area. This will make it possible for businesses to track their marketing efforts to evaluate whether or not they are successful.
The term “managed care penetration rate” refers to the proportion of the population enrolled in some coordinated medical care program. When the penetration rate is higher, it indicates that a more significant number of people have enrolled in a managed care plan. The managed care penetration rate impacts the definition of the service area because the managed care penetration rate is directly correlated with the size of the geographical area that is considered to be the service area.
Delineating the Service Area
The service area for a healthcare facility is often determined by the catchment area of the hospital or hospitals that send patients to the institution for treatment. The facility can serve a larger service area when certain conditions are met. The economic climate of the service area will likely play a crucial part in determining the level of success that a ventilator-dependent patient facility has. There is a good chance that potential patients and their families’ income, the availability of insurance coverage, and the cost of living in the area will all be significant issues (Ginter et al., 2018). The demographics of a service region contain information about the population size, population density, age of the population, income level, and education level, among other factors. This can give an overarching picture of the potential market for a company.
The study of psychographics can provide insight into the lifestyles, values, and attitudes of the people who live in a particular service region. Using this information, one may better determine the types of goods and services customers are likely to purchase. The condition of the population in a service region might provide insight into the future demand for health-related goods and services. You may use this information to better plan a business that deals in these goods or services.
Performing a Service Area Structure Analysis
The threat of new entrants in the laser hair removal sector is relatively minimal. New entrants pose minimal competitive risk. There are few significant barriers to entry, and you do not need much money to enter this sector. As a direct result, we anticipate a moderate level of new entrant competitiveness. The intensity of rivalry between established enterprises is roughly average (Ginter et al., 2018). Although several businesses pose a threat of substitutes competing in the laser hair removal market, none holds a significant market share. In addition, there is minimal to no separation between the various organizations because no distinguishing qualities may be utilized.
Alternative techniques to laser hair removal represent a far reduced risk. Laser hair removal is widely regarded as the most effective procedure for hair removal, although there are several other options as well. Similarly, the power of customer is restrained. Switching laser hair removal service providers does not significantly increase expenses, despite the availability of various providers (Jaśkowski & Czarnigowska, 2019). Similarly, the power of suppliers is restrained since there are numerous manufacturers of laser hair removal equipment. However, there is minimal brand loyalty among consumers.
Competitor Analysis/Identify Service Category Critical Success Factors
Competitors’ Strengths and Weaknesses refer to each competitor’s myriad advantages and disadvantages. A competitor, for instance, might have a more well-known brand name, while another might offer a product with a greater degree of originality (Na et al., 2019). The factors most critical to the industry’s success are referred to as the Critical Success Factors. For instance, a product’s clinical performance, pricing, and convenience could be crucial factors in determining its success in the market for laser hair removal.
Strategic groups refer to the many different consortia of competitors that exist within an industry. For instance, the laser hair removal industry may have two distinct strategic groupings: those that concentrate on clinical efficacy and those that concentrate on price. Both of these groups compete for customers. Mapping competitors enables a firm to keep track of the competitor’s location. The firm finds out more about the services offered by the competitors while investigating the likely responses of competitors.
Identifying and Mapping Strategic Groups
Many of these companies have set a minimal goal of producing goods at a minimal cost in their respective industries. In order to accomplish this, companies frequently forgo distinction in favor of increased volume. These companies place a strong emphasis on differentiating themselves from their rivals by offering one-of-a-kind products or services that are incomparable to those of their rivals. They typically ask for a higher price for their distinctive product or service. Targeting a specific market segment is these companies’ primary focus. Their goods and services are geared specifically to satisfying the requirements of the consumers who make up their target market. These companies aim to offer their products and services at the most competitive prices in their sector.
Synthesis
In the years to come, the healthcare sector is projected to continue its upward growth trajectory. The baby boomer generation is aging, increasing demand for medical services while the Affordable Care Act continues to expand the number of Americans eligible for health insurance. The market for laser hair removal is expected to expand in the coming years due to continued technology improvements and increased consumer expenditure on aesthetic services.
Conclusion
Any healthcare institution that places a high value on maintaining its relevance in delivering health services should conduct an exhaustive investigation of the markets covered by the various entities that constitute its competition. Through this process, it can make the necessary adjustments, which in turn helps it compete well with the many other companies in the industry. It is an important step in the process that must not be skipped under any circumstances.
References
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). Strategic Management of Health Care Organizations. Wiley.
Jaśkowski, P., & Czarnigowska, A. (2019). Contractor’s bid pricing strategy: A model with correlation among competitors’ prices. Open Engineering, 9(1), 159–166.
Na, Y., Kang, S., & Jeong, H. (2019). The effect of market orientation on performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage. Sustainability, 11(3), 729.