1- Conduct an industry analysis for an industry that you work in or closely with.

You
may also conduct an industry analysis for an industry that you are thinking of
entering.  

Phoenix Children's Hospital (PCH) is an Arizona-based non-profit pediatric hospital. The

hospital offers comprehensive medical care, including inpatient and outpatient services,
diagnostic testing, and specialist care, to children. As a pediatric hospitalist who has worked
at PCH for the last two years, I will conduct an industry analysis by examining the five market
forces that influence PCH position in the market. These five market forces are:

1. Competitive Rivalry: The industry of pediatric hospitals is very competitive. PCH

competes with other pediatric hospitals in the Phoenix metropolitan region, as well as
with general hospitals that provide pediatric care. One of the strengths of PCH is its
reputation as a leading pediatric hospital in the area, which allows it to attract patients
and keep its market share. In contrast to other pediatric hospitals, PCH has a relatively
high cost structure, which might restrict its competitiveness.

2. Threat of New Entrants: New entries into the pediatric hospital business carry
minimal threat to PCH. The large financial needs and complicated regulatory
environment connected with establishing a new hospital make entry into the market
challenging for new entrants. The existence of new, lower-cost providers, such as
private clinics and urgent care centers, might, however, have an influence on PCH's
market share in the future.

3. Threat of Substitutes: In the pediatric hospital industry, the threat of substitutes is

moderate. While PCH offers full medical care for children, other providers, such as
pediatrician's offices and urgent care facilities, provide more restricted services at a
lesser cost. PCH's capabilities in terms of quality of care and skill in treating
complicated medical conditions may assist it in distinguishing itself from these rivals
and retaining its market share.

4. Bargaining Power of Suppliers: Supplier bargaining power in the pediatric hospital

industry is moderate. PCH relies on outside vendors for a variety of items and services,
including medical supplies, pharmaceuticals, and staffing services. However, the scale
and complexity of the hospital's activities provide it significant bargaining strength
with suppliers.

5. Bargaining Power of Buyers: Buyers in the pediatric hospital market have a high
bargaining power. Patients and their families have a significant amount of control in
where they get their medical treatment, and there are a variety of options for pediatric
medical services in the Phoenix region. PCH's qualities in terms of quality of
treatment, reputation, and skill in treating complicated medical illnesses assist it in
attracting and retaining patients; yet, the comparatively high cost of its services may
restrict its competitiveness.
To summarize, the pediatric hospital industry is extremely competitive, with buyers
possessing significant negotiating power and suppliers holding moderate bargaining strength.
Other pediatric hospitals and alternative providers compete with PCH, but its reputation for
high-quality care and experience in addressing complicated medical conditions provides it a
competitive advantage. However, the comparatively high cost of its services may restrict its
future competitiveness.

2- Conduct an internal analysis for a firm or organization in the industry that you
conducted the industry analysis for in Question (1). 

Phoenix Children's Hospital (PCH) is a leading pediatric hospital that is providing service to a
wide number of populations in the state, however, it is operating in, healthcare service field,
which is a highly competitive industry. To understand its position in the market and identify
growth opportunities, I’ll conducted an internal market analysis, which includes a SWOT
analysis, competitive advantages

In my opinion and based on reviewed reports, PCH strengths can be derived from its strong
reputation, comprehensive medical care, and a highly trained medical staff. On the other hand,
several weaknesses can be also identified, such as a high cost structure, outdated technology, and
limited geographic presence. PCH has several opportunities for growth, including expanding its
services, entering new service lines, and partnering with other healthcare providers. At the same
time, PCH faces threats from competition, new low-cost providers, and changes in healthcare
legislation.

To sustain its competitive advantage in the long-term, PCH must address its weaknesses and
capitalize on its opportunities. This can be done by reducing its cost structure, investing in
technology and equipment, expanding its geographic presence, and exploring partnerships with
other healthcare providers. On the demand side, PCH can leverage its reputation for quality and
patient satisfaction to drive demand and increase its market share. The hospital can also increase
its bargaining power with suppliers and insurers by demonstrating its value and commitment to
providing high-quality care.

In terms of shaping industry forces, PCH can adopt a blue ocean strategy by developing
innovative services or treatments, such as telemedicine, to reach patients in remote or
underserved areas. Strategic management, as described by Garth Saloner, emphasizes the
importance of aligning a company's internal capabilities with its external opportunities and
threats. In the case of PCH, the internal analysis highlights its strengths, such as its reputation
and highly trained medical staff, as well as its weaknesses, such as its relatively high cost
structure. In order to sustain its market position, PCH need to build on its strengths and address
its weaknesses. For example, PCH could invest in technology and equipment to reduce its cost
structure and improve the quality of care it provides to patients.

In summary, the internal industry analysis of Phoenix Children's Hospital highlights the
importance of demand side increasing returns, transaction costs, and the role that these factors
play in shaping industry forces. By leveraging its reputation and high quality of care, PCH can
increase its bargaining power with suppliers and insurers and develop innovative services that set
it apart from other providers in the market. By aligning its internal capabilities with its external
opportunities and threats, PCH can achieve sustained competitive advantage in the pediatric
healthcare industry.