Porter’s Five Forces Competitive

Running head: MARKETING
Marketing
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Author’s Note:

1MARKETING
Introduction
The Modern day scenario is the age of huge competition. In order to make sure that the
company is able to give a very tough competition to their survivors, they have to conduct an
extensive internal and external analysis so that they are able to understand the strengths and the
weaknesses that are present and how can they meet with these issues. Sonic Health is also trying
their best to work go forward in the course of their business (Sonichealthcare.Com)
Porter’s Five Forces
Competitive rivalry
Competitive rivalry in the health care sector is high. This is because as there are many health
care sectors or firms coming up in the modern day scenario. This happens to be a threat because
they will have to compete with a large number of hospitals and other firms
Supplier Power
The suppliers are plenty for the heath care sectors. As there are many suppliers, this is a threat
for the company, as suppliers will be at a higher end of bargaining and can change the places
where they supply the product
Buyer Power
Buyer power is high in health care sectors as there are many firms. Each firm in the health care
sector is trying their level best to make sure that they can come up with the best possible services
and also technological advancements. Therefore customers can switch over from one form to the
other very easily

2MARKETING
Threat of Substitution
The number of substitutes available is high and this is also a major threat for the organization. As
there are many other firms, they might be able to develop a large number of substitutes and also
the chance of switching over to re substitutes is high (Park et al).
Threat of New Entry
Threat of new entry in the healthcare sector remains high as many entrepreneurs are trying to
set up start up industries and enter in the organization. Many new firms can enter into the
market each day with their best suitable strategies. All the firms are trying their level best to
make sure that they can attract the attention of their customers. Therefore threat of new entry is
high and this can be a threat for the health care sectors.
SWOT Analysis
Strength
Sonic health care has become the leading producer in many of the new and the innovative
medical products and technological devices in the field of pharmaceuticals and drug industry.
They have made consecutive profits in test 5 years and have been able to gain accumulated profit
reserves so that they can use it for all the future expenses.