Threat of Entrant: Low

De La Salle Obtaining specialized doctors is

University Medical
expensive and time consuming.
The cost of entry in this industry is
substantial, including equipment.
Center (DLSUMC) Every entry requires a license under
the Hospital Licensing Act.

PORTER'S FIVE FORCES A shortage of nurses makes it hard

for a new entry to recruit.

ANALYSIS
There are many established players.

Power of Supplier: Low Competitor Rivalry: High Power of Buyer: High

Low switching costs
Patients are price-sensitive due to
the rising cost of healthcare.
The ratio of supplier to hospital is
high, especially in terms of medical
supplies.
there are multiple suppliers for
medical necessities.
Most of the medical supplies are not
highly differentiated.
Products, such as medicines, are not
highly differentiated as any other
drug store can provide so.
Patients care more of the price than
the name of the hospital.
Patients can easily switch from
private to public hospitals, which
are less costly.
Services offered by private hospitals
does not entirely differ in quality.
Private hospitals generally cater
those middle and high income earners.
Patients prefer less costly services.
The services offered by hospitals are
significant fraction of patient's
expenses.
Most of the services are standard.
Freedom of patients to choose among
hospitals.

Threat of Substitutes: High

Home remedies are preferable for
Filipinos to save money.
There are many cheaper options for
patients in terms of medicines.
Switching cost is low as patients may
opt to switch to public hospitals.
Many simple and common medical cases can
be treated at home.
Filipinos are generally procrastinators
as they only divert from home to
hospital if the case becomes worse.
Erika Mae Legaspi-BSA41