factors that affect demand in a healthcare system
The marketers in the healthcare industry need to understand the perceptions they have of the products they offer in the market. These will give them the prowess in understanding what the customer wants. Healthcare sellers need to know the decisions of consumers, their choices in lifestyle, how they adhere to treatment regimens, and how they select their healthcare providers. The above is always the factors that affect demand in a healthcare system.
Pest analysis is an excellent tool during strategic planning in healthcare organizations. It is because, with the best strategies, the organization is placed in a unique position to gain success. The Pest analysis is based on the external factors of the organization. The Pest analysis is sometimes combined with SWOT analysis, which considers the internal elements of the organization. One of the factors included in the report is political factors. In the political sphere, tax legislation, employment regulations, and consumer protection are some of the elements involved that could impact the healthcare system. Changes in tax policies may cause an increase in healthcare spending. The second one is economic factors; they include inflation, unemployment. They can affect healthcare organizations directly or indirectly. For example, if a firm manufactures equipment to be used in hospitals and there is high unemployment, it means few people will purchase the product.
Different types of businesses could not exist without competition. In the healthcare industry, the game helps increase the quality and value of the care the patient receives. Better products and services are achieved when there is healthy competition. For example, one can compare the healthcare costs and the satisfaction a patient gets after treatment.
Porter’s model discusses the corporate strategy that business people can use to deal with the threats and opportunities in a business’s external environment. One is the entry of competitors, how easy other hospitals can get in the market, and compete to get the best services for the customers. Secondly is the power of suppliers in the business. Suppliers may have the ability if there are no substitutes, among other things.